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Drug Makers Buoy Dow Jones Industrial Average

China's Shanghai Composite ended higher for the eighth straight session

by 7/29/2014 8:13:44 AM
Stocks quoted in this article:

The Dow Jones Industrial Average (INDEXDJX:DJI) is headed higher in pre-market action, thanks to a pair of solid earnings. Specifically, drug makers and Dow components Merck & Co., Inc. (NYSE:MRK) and Pfizer Inc. (NYSE:PFE) both reported stronger-than-expected quarterly results, helping to offset lingering geopolitical concerns in Ukraine and Gaza. Outside of the earnings confessional, Wall Street is awaiting data on housing and consumer confidence, and keeping a close eye on the Federal Open Market Committee (FOMC), which starts its two-session policy meeting today.

Plus, our Trading Topic of the Week -- Trading Low-Priced Options: DON'T be tempted by the cheapest option available. It may seem like a good idea to keep your entry costs low by purchasing the lowest-priced option available. However, bear in mind that the cheapest contracts are most likely to expire worthless.

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 more than 37 points above fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.01 million call contracts traded on Monday, compared to 595,747 put contracts. Both the resultant single-session equity put/call ratio and the 21-day moving average arrived at 0.59.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S. dollar index is fractionally higher at 81.06.
  • Crude oil is set to extend Monday's slide, down 0.3% at $101.42 per barrel.
  • Gold, meanwhile, is headed higher, up 0.4% at $1,310.80 an ounce.
Currencies and commodities

Earnings and Economic Data

The FOMC will begin its two-day policy-setting meeting today. Meanwhile, the S&P/Case-Shiller home price index and the Conference Board's consumer confidence survey will be released. Slated to release quarterly numbers are American Express (AXP), MRK, PFE, Sirius XM Holdings (SIRI), Twitter (TWTR), Aetna (AET), AFLAC (AFL), AK Steel (AKS), Arch Coal (ACI), BP plc (BP), Buffalo Wild Wings (BWLD), Genworth Financial (GNW), Honda Motor (HMC), Level 3 Communications (LVLT), Marriott International (MAR), Newmont Mining (NEM), Panera Bread (PNRA), Reynolds American (RAI), Trinity Industries (TRN), U.S. Steel (X), and Waste Management (WM).

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