Global Sell-Off Pounds Dow Jones Industrial Average

China's Shanghai Composite plunged 5.3% on slumping crude futures

by Alex Eppstein

Published on Dec 9, 2014 at 8:23 AM
Updated on Apr 20, 2015 at 5:32 PM

The Dow Jones Industrial Average (INDEXDJX:DJI) is poised to open sharply lower, following in the footsteps of its overseas peers -- including a more than 5% decline in China's benchmark index. The global sell-off was primarily sparked by a fresh five-year low in crude futures yesterday. This morning, the Bureau of Labor Statistics releases its October Job Openings and Labor Turnover (JOLTS) survey, which traders will be watching carefully ahead of next week's policy-setting meeting of the Federal Open Market Committee (FOMC). Wholesale inventories are also set to hit the Street today.

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 roughly 128 points below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.2 million call contracts traded Monday, compared to 764,250 put contracts. The resultant single-session equity put/call ratio rebounded to 0.62, while the 21-day moving average held steady at 0.59.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S. dollar index is down 0.3% at 88.75.
  • Crude oil has gained 1% to $63.67 per barrel.
  • Gold has rallied 1.4% to $1,211.80 per ounce.
Currencies and commodities

Earnings and Economic Data

The JOLTS employment report hits the Street today, along with wholesale inventories. AutoZone (AZO), Conn's (CONN), Krispy Kreme Doughnuts (KKD), Pep Boys (PBY), and UTI Worldwide (UTIW) will step into the earnings spotlight.

Overseas Trading

Markets in Asia slumped as crude continued to trend lower. China's Shanghai Composite was down by as much as 6% on profit-taking and fears the central bank will lower its 2015 gross domestic product (GDP) target, before settling 5.3% south of the flatline. Hong Kong's Hang Seng was the second biggest percentage decliner, shedding 2.3%. Meanwhile, Japan's Nikkei and South Korea's Kospi gave back 0.7% and 0.4%, respectively.

European bourses are taking their cue from the sell-off in Chinese stocks, paced by weakness in the mining and energy sectors. London's FTSE 100 is off 1.4% around midday, the German DAX has slipped 1.3%, and France's CAC 40 is down 1.5%.

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

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.
First Week in April Provides More Coronavirus-Related Volatility
A slew of coronavirus-related news sent markets on another weekly roller coaster ride
Netflix Stock Heading into Historically Bullish Quarter
NFLX's 10-day moving average has stepped up as support lately
The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.