China Cuts Interest Rates, Dow Jones Industrial Average Soars

The People's Bank of China slashed its interest rates for the first time in two years

Nov 21, 2014 at 9:02 AM
facebook X logo linkedin


The Dow Jones Industrial Average (INDEXDJX:DJI) is pointed sharply higher on news that the People's Bank of China cut interest rates for the first time in more than two years. The decision was spurred by weakness in the manufacturing sector and throughout the property market. Stateside, a pair of central bank officials -- Federal Reserve Governor Daniel Tarullo and New York Fed President William Dudley -- are scheduled to speak before the Senate Banking subcommittee on investigations this morning. Meanwhile, Foot Locker, Inc. (NYSE:FL) will step into the earnings confessional.

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 about 119 points above fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.2 million call contracts traded on Thursday, compared to 631,602 put contracts. The resultant single-session equity put/call ratio fell to 0.55, while the 21-day moving average edged down to 0.61.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S. dollar index is up 0.6% at 88.15.
  • Crude oil has popped 1.8% to $77.20 per barrel.
  • Gold is 0.9% higher -- and back atop $1,200 -- at $1,201.30 per ounce.
Currencies and commodities

Earnings and Economic Data

There are no notable economic reports today. FL will announce its earnings.

Overseas Trading

Stocks in Asia soared after China's central bank cut interest rates for the first time since 2012, in order to prop up its economy. In addition, Japanese Prime Minister Shinzo Abe opted to dissolve the lower house of parliament, forcing an early election. By the close, Japan's Nikkei was up 0.3%, while the Shanghai Composite had popped 1.4% to pace the major indexes. Elsewhere, South Korea's Kospi and Hong Kong's Hang Seng each gained 0.4%.

European markets are rallying on the aforementioned decision by the People's Bank of China, as well as dovish comments by European Central Bank (ECB) President Mario Draghi. Specifically, Draghi said the ECB will act swiftly to fight off low inflation, amid stagnant economic growth. Around midday, France's CAC 40 has spiked 2.4%, while Germany's DAX isn't far behind, up 2.1%. Meanwhile, London's FTSE 100 is 1.3% 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

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI