Dow is Pointed Lower; OPEC Slashes Oil Forecast

Asian markets were pressured by a rash of weak economic data

Dec 10, 2014 at 8:31 AM
facebook twitter linkedin


The Dow Jones Industrial Average (INDEXDJX:DJI) is again headed lower, as traders process a modest recovery in European stocks and a choppy session for Asian bourses. On the economic front, the weekly crude inventories report is due out at 10:30 a.m. ET. Ahead of that release, the Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for 2015 oil demand, sending crude futures reeling in early trading. Meanwhile, among companies reporting earnings, Costco Wholesale Corporation (NASDAQ:COST) beat expectations, while Toll Brothers Inc (NYSE:TOL) fell shy of the Street's consensus estimate.

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 roughly 53 points below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 996,670 call contracts traded on Tuesday, compared to 774,691 put contracts. The resultant single-session equity put/call ratio jumped to 0.78, while the 21-day moving average edged up to 0.60.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S. dollar index is off a slight 0.02% at 88.67.
  • Crude oil has tumbled 1.9% to $62.62 per barrel.
  • Gold has given back 0.3% at $1,227.80 per ounce.
Currencies and commodities

Earnings and Economic Data

The Treasury budget and weekly crude inventories make up today's docket. Avanir Pharmaceuticals (AVNR), Hovnanian (HOV), and Lands' End (LE) will report earnings.

Overseas Trading

Stocks in Asia finished the day mixed, as traders digested disappointing inflation numbers out of China, including a five-year low in the nation's consumer price index (CPI). Japan's government also released a survey showing a decline in optimism among manufacturers for the current and upcoming quarters. By the close, Japan's Nikkei had skidded to a 2.3% loss, and South Korea's Kospi was 1.3% lower. Meanwhile, the Shanghai Composite rebounded from an early session sell-off to close with a 3% gain, while Hong Kong's Hang Seng added a more modest 0.2%.

European markets are pointed higher, as stocks attempt to come back from Tuesday's losses. However, concerns are starting to brew in Eastern Europe, after the Ukrainian military said separatists failed to respect an agreed-upon ceasefire. Currently, London's FTSE 100 has tacked on 0.2%, France's CAC 40 is up 0.4%, and Germany's DAX is 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


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners