Dow is Set to Start Holiday Week On a Strong Note

After a strong showing last week, the Dow Jones Industrial Average (INDEXDJX:DJI) is headed higher once again. Although it's expected to be a low-volume session due to the holiday-shortened week, there's plenty on the corporate front to hold investors' attention. Specifically, the biopharmaceutical sector should be in focus today, following fundamental developments for Cubist Pharmaceuticals Inc (NASDAQ:CBST), AbbVie Inc (NYSE:ABBV), and Gilead Sciences, Inc. (NASDAQ:GILD).

• A lesson in the importance of CBOE Volatility Index (VIX) open interest, courtesy of Schaeffer's Senior VP of Research Todd Salamone.
• Analysts at Citigroup think a rally to record highs is on the horizon for Facebook Inc (NASDAQ:FB).
• Option bears are eyeing more downside for this retailer, following Friday's post-earnings collapse.

Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are more than 78 points above fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.43 million call contracts traded on Friday, compared to 835,661 put contracts. The resultant single-session equity put/call ratio edged up to 0.59, while the 21-day moving average remained at 0.65.

Currencies and Commodities

• The U.S. dollar index is down 0.1% at 89.49.
• Crude oil is ready to resume its recent downtrend, and was last seen 1.1% lower at $56.51 per barrel.
• Gold, meanwhile, is little changed to trade at $1,196.20 per ounce.

Earnings and Economic Data

The holiday week kicks off with existing home sales. There are no notable earnings on tap.

Overseas Trading

Asian markets extended last week's Fed-induced rally, as a continued bounce in crude oil helped boost investor sentiment. In China, the Shanghai Composite tagged a nearly four-year high before settling with a 0.7% gain, while Hong Kong's Hang Seng added 1.3%. Elsewhere, South Korea's Kospi tacked on 0.7%, despite downwardly revised 2014 and 2015 growth forecasts, while Japan's Nikkei rose 0.1%.

A rebound in energy stocks has European benchmarks higher at midday. Additionally, traders appear to be taking a glass-half-full approach ahead of today's release of a flash reading on eurozone consumer confidence, as well as the Bank of England's (BoE) minutes from its latest policy-setting meeting. At last check, the German DAX is up 1%, while London's FTSE 100 and the French CAC 40 are flirting with 0.8% leads.

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