Dow Jones Industrial Average Futures Eye Eighth Straight Loss

Debunking the S&P 'Coil Pattern'

Aug 3, 2016 at 9:08 AM

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Dow Jones Industrial Average (DJIA) futures are just below fair value yet again this morning, suggesting the index could extend its losing streak to an eighth day -- which would mark its longest downturn since 2011. Global stocks are reacting to Tuesday's stimulus disappointment out of Japan, but encouraging jobs data ahead of Friday's closely watched payrolls report is helping to limit losses. Specifically, the U.S. added 179,000 private-sector jobs in July -- slightly better than the 170,000 predicted -- according to ADP. Elsewhere, crude oil prices are bouncing back somewhat, but the September contract for crude is still seated below the $40-per-barrel mark.

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

Should we brace for a violent breakout? Schaeffer's Senior Quantitative Analyst Rocky White debunks the S&P "coil pattern."
Why options volume exploded on these 2 automakers.
The drugmaker getting slammed by analysts.
Plus... Japan's stimulus woes, strong sales boost Fitbit, and Etsy raises its outlook.

Dow Futures August 3

Futures on the Dow Jones Industrial Average (DJIA) are roughly 5 points below fair value.

5 Things You Need to Know Today

Markets in Asia digested Japan's stimulus news, sending stocks broadly lower despite some upbeat earnings reports.
The Chicago Board Options Exchange (CBOE) saw 737,879 call contracts traded on Tuesday, compared to 530,144 put contracts. The resultant single-session equity put/call ratio stayed put at 0.72, while the 21-day moving average edged higher to 0.64.
Strong second-quarter sales and earnings have Fitbit Inc (NYSE:FIT) up more than 7% in electronic trading. The price action could have FIT short sellers sweating today.
Online retailer Etsy Inc (NASDAQ:ETSY) is up 2.7% ahead of the bell, after the company reported 39% revenue growth for the last quarter and raised its full-year guidance -- news that has already been met with upbeat analyst attention.
Humana Inc (NYSE:HUM) easily beat estimates for second-quarter earnings and revenue. The Aetna Inc (NYSE:AET) acquisition target also said it would severely reduce its "Obamacare" participation.

Buzz Stocks August 3

Earnings and Economic Data

The day's economic reports include the ISM non-manufacturing index and the weekly update on crude inventories. On the earnings front, Tesla Motors (TSLA), Transocean LTD (RIG), Herbalife (HLF), 3D Systems (DDD), Agrium (AGU), Autohome (ATHM), AVG Tech (AVG), Boyd Gaming (BYD), CF Industries (CF), Clorox (CLX), Crocs (CROX), Ctrip (CTRP), Delphi Automotive (DLPH), GoDaddy (GDDY), Intellia Therapeutics (NTLA), Kate Spade (KATE), Marathon Oil (MRO), Metlife (MET), Office Depot (ODP), Prudential Financial (PRU), Sequenom (SQNM), and Time Warner (TWX) are expected to report. To see what's coming up on this week's schedule, click here.

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