Dow Futures Spiking on Fed-Induced Optimism

Crude oil is ready to rally nearly 3% out of the gate

Dec 18, 2014 at 8:19 AM
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Fed-induced optimism sent the Dow Jones Industrial Average (INDEXDJX:DJI) to its best day of the year on Wednesday, and the blue-chip barometer is set to pick up right where it left off. At last check, futures on the DJI were up 200 points, while those on the S&P 500 Index (SPX) and Nasdaq Composite (COMP) were also signaling impressive starts. Meanwhile, crude oil should continue to dominate headlines, with futures nearly 3% higher in electronic trading. On the economic front, weekly jobless claims and the Philadelphia Fed's manufacturing survey are slated for release.

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 200 points above fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.09 million call contracts traded on Wednesday, compared to 772,942 put contracts. The resultant single-session equity put/call ratio fell to 0.71, while the 21-day moving average edged up to 0.64.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S. dollar index is fractionally lower at 89.12.
  • Crude oil is on pace to add to Wednesday's gains, up 2.9% at $58.42 per barrel.
  • Gold, meanwhile, is 1% higher at $1,206.60 per ounce.
Currencies and commodities

Earnings and Economic Data

Weekly jobless claims and the Philadelphia Fed's manufacturing survey come out today. On the earnings front, Nike (NKE), Accenture (ACN), Cintas (CTAS), ConAgra (CAG), NQ Mobile (NQ), Pier 1 Imports (PIR), Red Hat (RHT), RAD, and Scholastic Corp (SCHL) will report.

Overseas Trading

It was a mixed session in Asia today. Japan's Nikkei rallied 2.3% -- and reclaimed its perch atop the 17,000 mark -- amid a cooling yen and optimism ahead of tomorrow's policy decision from the Bank of Japan (BoJ). Hong Kong's Hang Seng, meanwhile, tacked on 1.1%. On the flip side, both South Korea's Kospi and China's Shanghai Composite gave back 0.1%, with the latter retreating following a report that showed new home prices fell in November.

European bourses are in rally mode at midday, tracking the Fed-induced gains of their U.S. counterparts. Adding to the bullish buzz is a better-than-expected German Ifo business climate survey. Against this backdrop, the French CAC 40 is up 2.6%, the German DAX is 2.1% higher, and London's FTSE 100 is enjoying a 1.1% lead.

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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