Dow Jones Industrial Average Eyes a Big Bounce

In Japan, Prime Minister Shinzo Abe was the victor in this weekend's snap election

Karee Venema

Dec 15, 2014 at 8:18 AM

After notching its worst weekly loss in three years last week, the Dow Jones Industrial Average (INDEXDJX:DJI) is ready to rally out of the gate. Traders appear to be taking a glass-half-full approach in the lead-up to the Federal Open Market Committee's (FOMC) latest policy decision, set for release on Wednesday afternoon. Ahead of this highly anticipated event, though, a pair of reports on factory activity, as well as pending home sales data, is due out today. Additionally, Wall Street will keep one eye trained on Australia, where hostages are being held in a Sydney cafe.

Lululemon Athletica inc. (NASDAQ:LULU) continued its post-earnings tear on Friday, helped by a round of upbeat brokerage notes.
3 stocks that ended last week on a high note.
In case you missed it, 14 stories from 2014 that captured Wall Street's attention.

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 more than 95 points above fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.09 million call contracts traded on Friday, compared to 855,211 put contracts. The resultant single-session equity put/call ratio rose to 0.79, while the 21-day moving average edged up to 0.62.

Currencies and Commodities

The U.S. dollar index is up 0.2% at 88.51.
Crude oil is down 0.1% at $58.01 per barrel.
Gold has plunged 0.8% to $1,212.20 per ounce.

Earnings and Economic Data

The week starts off with a bang, with the Empire State manufacturing index, industrial production and capacity utilization, the National Association of Realtors' pending home sales index, and Treasury International Capital (TIC) all slated for release. FuelCell Energy (FCEL) and VeriFone (PAY) will report earnings.

Overseas Trading

Most Asian markets finished lower today, as disappointing data from Japan and a hostage crisis in Sydney weighed on investor sentiment. Specifically, a worse-than-expected reading on business sentiment in Japan overshadowed a snap-election victory for Prime Minister Shinzo Abe, sending the Nikkei to a 1.6% loss. Elsewhere, Hong Kong's Hang Seng settled down 1%, while South Korea's Kospi gave back 0.1%. China's Shanghai Composite managed to buck the regional bearish bias, tacking on 0.5%.

European bourses are modestly higher at midday, amid a rebound in energy stocks. At last check, the French CAC 40 is up 0.5%, London's FTSE 100 is flirting with a 0.4% lead, and the German DAX is 0.3% higher.

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.

Follow @Schaeffers

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?