The Dow is Now Poised for Another Triple-Digit Pop

Chicago Fed President Charles Evans offered up dovish comments last night

Jan 8, 2015 at 8:20 AM
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After taking a big chunk out of its weekly deficit on Wednesday, the Dow Jones Industrial Average (INDEXDJX:DJI) is poised to do more of the same in today's session. While oil's bounce and the latest meeting minutes from the Federal Open Market Committee (FOMC) helped spark yesterday's rally, an upbeat report on private-sector employment also buoyed investor sentiment. Jobs data continues to roll in today -- ahead of tomorrow's highly anticipated nonfarm payrolls report -- in the form of weekly jobless claims.

Also in focus will be an early afternoon speech from Boston Fed President Eric Rosengren. This comes in the wake of last night's dovish comments from Chicago Fed President Charles Evans, who said he doesn't expect the economy to hit the Federal Reserve's target inflation rate until 2018, and cautioned against raising interest rates until next year.

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 166 points above fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 949,054 call contracts traded on Wednesday, compared to 690,637 put contracts. The resultant single-session equity put/call ratio jumped to 0.73, while the 21-day moving average stayed at 0.66.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S. dollar index is 0.6% higher at 92.47.
  • Crude oil is poised to extend its bounce, and was last seen up 0.3% at $48.81 per barrel.
  • Gold, meanwhile, is 0.3% lower at $1,207.20 per ounce.
Currencies and commodities

Earnings and Economic Data

Weekly jobless claims and the Fed's consumer credit report will be released today. Apollo Education Group (APOL), Bed Bath & Beyond (BBBY), Constellation Brands (STZ), Global Payments (GPN), Ruby Tuesday (RT), and Schnitzer Steel (SCHN) will announce earnings.

Overseas Trading

Asian markets finished mostly higher today, tracking the gains of their U.S. counterparts. In Japan, the Nikkei rallied 1.7% on the back of a cooling yen, while South Korea's Kospi added 1.1%, and Hong Kong's Hang Seng rose 0.7%. China's Shanghai Composite, meanwhile, bucked the regional bullish bias amid a round of profit-taking in the financial sector to finish with a 2.4% loss.

European benchmarks are sitting solidly in the green at midday, led by a rally in retail and energy names. Traders are also digesting the latest policy decision from the Bank of England, which chose to leave its current interest rate unchanged. All eyes will now be on the European Central Bank's Jan. 22 meeting, with hopes high that a fresh round of stimulus measures could be unveiled. Against this backdrop, the French CAC 40 is up 2.3%, while London's FTSE 100 and the German DAX are both flirting with 1.8% gains.

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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