Dow Jones Industrial Average in Danger of Additional Losses

European bourses are lower at midday, led by a bank swoon

Oct 30, 2014 at 8:26 AM
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The Dow Jones Industrial Average (INDEXDJX:DJI) is poised to extend yesterday's post-Fed run lower, as traders continue to digest the end of quantitative easing. Although the central bank vowed to keep interest rates near record lows for a time, it bolstered its view of the U.S. labor market, triggering speculation that a rate hike could come sooner rather than later. Outside of the Fed umbrella, Wall Street will weigh another batch of earnings reports, as well as the latest gross domestic product (GDP) figures.

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 50 points below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.1 million call contracts traded on Wednesday, compared to 789,150 put contracts. The resultant single-session equity put/call ratio edged higher to 0.72, while the 21-day moving average dipped to 0.69.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S. dollar index is 0.3% higher at 86.22.
  • Crude oil is down 1.1% at $81.33 per barrel.
  • Elsewhere, gold has shed 1.7% to $1,204 an ounce, in the wake of the Fed's policy statement.
Currencies and commodities

Earnings and Economic Data

The advance reading on third-quarter GDP comes out today, along with weekly jobless claims. GoPro (GPRO), Groupon (GRPN), LinkedIn (LNKD), Starbucks (SBUX), Time Warner Cable (TWC), Alcatel Lucent (ALU), Altria (MO), Avon Products (AVP), CME Group (CME), Expedia (EXPE), hhgregg (HGG), Kellogg (K), Marathon Petroleum (MPC), MasterCard (MA), MGM Resorts (MGM), Microchip Technology (MCHP), Mosaic (MOS), New York Times (NYT), TASER (TASR), Teva Pharmaceutical (TEVA), and World Wrestling Entertainment (WWE) will release earnings.

Overseas Trading

It was a mixed finish in Asia today, as speculators mulled the U.S. Fed's decision to end quantitative easing. A cooling yen helped Japan's Nikkei to a 0.7% gain, while the Chinese State Council's vow to promote consumption in six key sectors -- including housing and e-commerce -- lifted the Shanghai Composite by 0.8%. A lackluster report on factory output dragged South Korea's Kospi 0.1% lower, while Hong Kong's Hang Seng pulled back from a one-month high, shedding 0.5%.

European indexes are in the red at midday, led by the banking sector, despite a report that eurozone confidence unexpectedly picked up in October. At last check, London's FTSE 100 was down 1.1%, France's CAC 40 was 1.4% lower, and Germany's DAX was on pace for a 1.9% drop.

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

 

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