Dow Jones Industrial Average Futures Higher as Fed Meeting Kicks Off

SPY Levels to Watch as Fed Catalyst Looms

Dec 15, 2015 at 8:57 AM

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Dow Jones Industrial Average (DJIA) futures were up triple digits earlier, on pace to extend Monday's oil-inspired rally. However, downwardly revised guidance from 3M Co (NYSE:MMM) has taken some of the wind out of the bulls' sails. On the economic front, traders will weigh the latest inflation and manufacturing numbers ahead of tomorrow's highly anticipated Fed announcement, with the central bank kicking off its two-day policy meeting today.

Continue reading for more on today's market, including:

Why you should pay close attention to these SPDR S&P 500 ETF Trust (SPY) levels as we head into the biggest Fed event in years.
How option players are betting on a much bigger-than-usual earnings reaction for one mining equipment maker.
Goldman Sachs is "swiping left" on this Wall Street rookie.

And now, on to the numbers…

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Futures on the Dow Jones Industrial Average (DJIA) are 67.5 points above fair value.

5 Things You Need to Know Today

Global stocks are mixed, with Asian benchmarks ending mostly lower amid pre-Fed caution, and European equities firmly higher at midday.
The Chicago Board Options Exchange (CBOE) saw 1.4 million call contracts traded on Monday -- a 2015 high -- compared to 817,803 put contracts. The resultant single-session equity put/call ratio plunged to 0.57, while the 21-day moving average dipped to 0.74.
Lumber Liquidators Holdings Inc (NYSE:LL) shares are pointed 27% higher in pre-market action, after hedge fund manager Whitney Tilson said he covered his short position. LL made major headlines earlier this year after a scathing "60 Minutes" report, which ultimately sent the stock to six-year lows in August.
Sirius XM Holdings Inc. (NASDAQ:SIRI) is pointed 4.8% higher ahead of the bell, after inking a 12-year deal with Howard Stern. SIRI settled squarely at $4 on Monday, which served as staunch resistance earlier this year, but could now switch roles to act as support.
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) struck a deal with Walgreens Boots Alliance Inc (NYSE:WBA) to distribute some drugs at a discount. Just yesterday, VRX shrugged off a negative analyst note to close higher, and the stock has rallied another 8.5% ahead of the bell this morning.

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Earnings and Economic Data

Today's calendar features the consumer price index (CPI), the Empire State manufacturing index, the NAHB housing market index, and Treasury International Capital (TIC) data -- plus, the two-day Federal Open Market Committee (FOMC) meeting will begin. FactSet (FDS) and Peak Resorts (SKIS) are among the few companies stepping into the earnings booth. To see what else is coming up on this week's agenda, click here.

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