Dow Jones Industrial Average Braces for Ebola-Related Hit

New York City has its first confirmed case of Ebola

Oct 24, 2014 at 8:13 AM

The Dow Jones Industrial Average (INDEXDJX:DJI) appears ready to drop out of the gate, following the first confirmed Ebola case in New York City -- though Mayor Bill de Blasio tried to allay fears by saying the patient had contact with "very few" people while symptomatic. Elsewhere, earnings season continues to run hot today, with Procter & Gamble Co (NYSE:PG) and Ford Motor Company (NYSE:F) among the major firms releasing quarterly numbers. On the economic calendar, new home sales data is due out at 10 a.m. ET.

Stronger-than-expected earnings sent this Dow component soaring, putting it on the brink of triple-digit territory.
Fellow blue chip AT&T Inc. (NYSE:T) faced a barrage of bearish brokerage notes on the heels of its lackluster earnings report.
King Digital Entertainment PLC (NYSE:KING) has fared poorly since its public debut, but that didn't stop traders from buying calls ahead of earnings.

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 32 points below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.2 million call contracts traded on Thursday, compared to 744,641 put contracts. The resultant single-session equity put/call ratio fell to 0.61, while the 21-day moving average remained at 0.70.

Currencies and Commodities

The U.S. dollar index is off fractionally at 85.82.
Crude oil has lost 0.9% at $81.38 per barrel.
Elsewhere, gold is up 0.3% at $1,232.60 per ounce.

Earnings and Economic Data

New home sales will be released today. Stepping up to the earnings plate will be PG, F, Bristol-Myers Squibb (BMY), Colgate-Palmolive (CL), Lear (LEA), and United Parcel Service (UPS).

Overseas Trading

Stocks in Asia ended the week mixed, as traders weighed the rally in U.S. markets against rising Ebola fears and a surprise drop in Chinese new home prices. Japan's Nikkei was the day's biggest gainer, tacking on 1% despite a strong yen, thanks to strong performances from companies related to managing the aforementioned virus. China's Shanghai Composite also finished slightly higher. Meanwhile, Hong Kong's Hang Seng and South Korea's Kospi gave back 0.1% and 0.3%, respectively.

Ebola fears are also weighing on European markets. Around midday, London's FTSE 100 is down 0.3%, as the U.K.'s preliminary third-quarter gross domestic product (GDP) rose in line with estimates. France's CAC 40 and Germany's DAX are even further south of breakeven, off a respective 0.5% and 0.7%.

Unusual Put and Call Activity:

Due to issues with our data provider, the Unusual Put and Call charts are unavailable today. We apologize for any inconvenience.

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