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Dow Jones Industrial Average Stands Pat as Wall Street Waits for Earnings

The Bank of Japan left its monetary stimulus plan unchanged

by 4/8/2014 8:12:51 AM
Stocks quoted in this article:

Futures on the Dow Jones Industrial Average (INDEXDJX:DJI) are little changed this morning, following a three-day sell-off that saw the 30-stock index surrender roughly 2%. Traders are taking a wait-and-see approach ahead of first-quarter earnings season, which unofficially kicks off after tonight's closing bell when aluminum giant Alcoa Inc (NYSE:AA) unveils its quarterly results. In today's session, the Labor Department's Job Openings and Labor Turnover Survey (JOLTS) report is due at 10 a.m. ET. Additionally, a trio of Federal Reserve officials is slated to speak this afternoon. Ahead of these events, the DJI is lingering just below breakeven.

Elsewhere, "The put/call ratio for the SPDR S&P 500 ETF Trust (SPY) finished yesterday's session at 2.4, which is near an extreme-high level for 2014," commented Schaeffer's Senior Trading Analyst Bryan Sapp. "This is a good quantification of near-extreme fear, and previous readings around these levels have marked short-term bottoms for the S&P 500 Index (SPX)."

Plus, our Trading Topic of the Week -- Tips for Trading Stock Trends: Confirm that there are still some skeptics on the sidelines. A solid uptrend is certainly impressive to look at, but a pretty chart alone doesn't guarantee a profitable trade. After all, a rally looks best right at the top.

And now, on to the numbers...

Dow Jones Industrial Average, S&P and Nasdaq futures

Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are roughly 5 points below breakeven.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1,191,687 call contracts traded on Monday, compared to 735,204 put contracts. The resultant single-session put/call ratio dropped to 0.62, while the 21-day moving average remained at 0.60.

NYSE and Nasdaq summary

Volatility indices

From the Trading Floor

"The S&P 500 bottomed near 1,840 yesterday, which is the site of its 50-day moving average, as well as two key lows from March," continued Sapp. "What's more, this level coincides with former resistance from December and January. Going forward, the bulls will want to see this area hold."

Currencies and Commodities

  • The U.S. dollar index is on the decline this morning, with the currency last seen 0.4% lower at 79.95.
  • Elsewhere, crude oil is on the mend, with the front-month contract up 0.9% at $101.34 per barrel.
  • Against a weakening dollar, gold futures have powered 1.1% higher, with gold for June delivery lingering near $1,312.20 an ounce.
Currencies and commodities

Earnings and Economic Data

The Labor Department's JOLTS report is scheduled for today. Meanwhile, first-quarter earnings season unofficially gets underway after the close, when AA steps into the earnings confessional. WD-40 Company (WDFC) will also unveil its quarterly results.

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