All Eyes on Fed, Facebook; Dow Set to Test 17,000

Industrial production data lifted Japan's Nikkei

Oct 29, 2014 at 8:16 AM
facebook twitter linkedin

After staging a late-day surge yesterday, the Dow Jones Industrial Average (INDEXDJX:DJI) is sticking close to the newly conquered 17,000 level. Traders are treading lightly ahead of the highly anticipated Federal Open Market Committee (FOMC) policy statement -- as well as the subsequent speech from Fed Chair Janet Yellen -- this afternoon. In the meantime, Wall Street will bide its time with the latest batch of corporate earnings reports, with Facebook Inc (NASDAQ:FB) set to join Twitter Inc (NYSE:TWTR) on the "naughty" list -- likely much to the chagrin of recent options buyers.

And now, on to the numbers...

Dow Jones Industrial Average, S&P and Nasdaq futures

Futures on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) are 3 points above fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.22 million call contracts traded on Tuesday, compared to 818,915 put contracts. The resultant single-session equity put/call ratio edged higher to 0.67, while the 21-day moving average remained at 0.70.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S. dollar index is fractionally lower at 85.40.
  • Crude oil is up 0.9% at $82.18 per barrel.
  • Elsewhere, gold has shed 0.2% to $1,227.20 per ounce.
Currencies and commodities

Earnings and Economic Data

The FOMC will announce its latest policy decision, followed by a press conference from Fed Chair Janet Yellen. The regularly scheduled crude inventories will also be released. For earnings, Visa (V), Akamai Technologies (AKAM), Allstate (ALL), Avis (CAR), Baidu (BIDU), Barrick Gold (ABX), Cirrus Logic (CRUS), Dreamworks Animation (DWA), F5 Networks (FFIV), Garmin (GRMN), Glu Mobile (GLUU), Kraft Foods (KRFT), RF Micro Devices (RFMD), SodaStream (SODA), Shutterfly (SFLY), SunPower (SPWR), and Take-Two Interactive (TTWO) will report.

Overseas Trading

Asian bourses followed U.S. equities into the black ahead of today's FOMC policy statement. Japan's Nikkei rallied 1.5% on strong industrial production data, while South Korea's Kospi flew 1.8% higher in spite of weak data. Hong Kong's Hang Seng and China's Shanghai Composite followed suit, adding 1.3% and 1.5%, respectively.

European benchmarks are also higher at midday, with traders optimistic ahead of the FOMC statement. However, Sanofi SA (ADR) (NYSE:SNY) is leading French pharmaceutical stocks lower, after its CEO was booted from the board. At last check, France's CAC 40 was a hair north of breakeven, while London's FTSE 100 and Germany's DAX were both 0.6% higher.

Overseas markets

Unusual Put and Call Activity:

For an explanation of how to use this information, check out our Education Center topics on Option Volume and Open Interest Configurations.

Unusual options activity - puts

Unusual options activity - calls


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners