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Dow Jones Industrial Average Stumbles on Overseas Turmoil

The DJI is on pace for a negative start amid troubling developments at home and abroad

by 7/25/2014 8:23:50 AM
Stocks quoted in this article:

The Dow Jones Industrial Average (INDEXDJX:DJI) is pointed south ahead of the open, pressured by negative earnings news and troubling developments from abroad. Ukrainian Prime Minister Arseniy Yatsenyuk offered up his resignation on Thursday amid growing turmoil in the region, while the civilian death toll jumped in Gaza after Israeli shells hit a United Nations (U.N.)-run school -- the fourth U.N. facility to be hit during the weeks-long conflict. Meanwhile, a wider-than-forecast quarterly loss from Amazon.com, Inc. (NASDAQ:AMZN) has the stock down more than 10% ahead of the bell, and has given rise to headlines like, "Will Amazon ever be profitable?" (The Telegraph), and "Is Amazon spending like a drunken sailor?" (MarketWatch). Against this backdrop, the major market indexes are poised to open in the red.

  • Rumors of a possible Samsung bid sparked heavy call volume for one telecom stock.
  • Bullish traders are looking for embattled retailer J C Penney Company Inc (NYSE:JCP) to rally more than 5% over the next few weeks.
  • Weekly options players placed their bets on a bearish end to the week for Microsoft Corporation (NASDAQ:MSFT).
Plus, our Trading Topic of the Week -- Tips for Buying Weekly Options: Take advantage of affordable hedging opportunities. Weekly options offer an economical way to guard your stock positions against event-related risk.

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 nearly 29 points below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.27 million call contracts traded on Thursday, compared to 730,137 put contracts. The resultant single-session equity put/call ratio pulled back to 0.58, while the 21-day moving average stayed at 0.58.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S. dollar index is inching higher this morning, up 0.07% at 80.93.
  • Crude oil has slipped into the red, off 0.1% at $101.96 per barrel.
  • Meanwhile, gold has advanced 0.3% to trade at $1,297 per ounce.
Currencies and commodities

Earnings and Economic Data

The week will close out with an update on durable goods orders. Covidien (COV), LyondellBasell (LYB), Tyco (TYC), Stanley Black & Decker (SWK), and Xerox (XRX) will announce earnings.

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