The Dow is Poised to Plummet as Crude Soars

Saudi Arabia carried out an airstrike against rebels in Yemen

Mar 26, 2015 at 8:29 AM

It appears yesterday's triple-digit sell-off on the Dow Jones Industrial Average (DJIA) will continue this morning, despite a relatively quiet day on the earnings and economic fronts. Meanwhile, speaking from Germany, St. Louis Fed President James Bullard called on the central bank to normalize monetary policy, due to improvements in the economy -- though he added "monetary policy will remain exceptionally accommodative" amid normalization. Elsewhere, commodities are getting a lift, as Saudi Arabia's airstrike against rebels in Yemen is driving crude sharply higher.

Advanced Micro Devices, Inc. (NASDAQ:AMD) and Avago Technologies Ltd (NASDAQ:AVGO) were among the semiconductor stocks that got wrecked on Wednesday.
Keurig Green Mountain Inc (NASDAQ:GMCR) continued its downtrend, bringing short-term put buyers to the table.
How this embattled stock pulled off a double-digit, single-day gain.

And now, on to the numbers...

Dow Jones Industrial Average, S&P and Nasdaq futures

Futures on the Dow Jones Industrial Average (DJIA) are nearly 99 points below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 987,157 call contracts traded on Wednesday, compared to 684,767 put contracts. The resultant single-session equity put/call ratio slipped to 0.69, while the 21-day moving average held at 0.65.

Currencies and Commodities

The U.S. dollar index is off 0.4% at 96.56.
Crude oil has jumped 4.4% to trade at $51.37 per barrel.
Gold is up 0.8% at $1,207.30 per ounce.

Earnings and Economic Data

Weekly jobless claims will be released today. Accenture (ACN), ConAgra Foods (CAG), Lululemon Athletica (LULU), Commercial Metals (CMC), and GameStop (GME) will unveil earnings. To see what else is on this week's agenda, click here.

Overseas Trading

Asian stocks were mostly lower, tracking yesterday's sell-off in U.S. markets. Japan's Nikkei was off 1.4%, bringing it to a nine-day low. Hong Kong's Hang Seng dropped 0.1%, while South Korea's Kospi lost 1%. The Shanghai Composite, however, was able to muster a 0.6% gain.

The scene is similar in Europe, where bourses are lower across the board, as political troubles in Yemen weigh on investor sentiment. The German DAX is down 1.7%, the French CAC 40 is off 1.5%, and London's FTSE 100 has given back 1.4%.

Unusual Put and Call Activity:

Due to technical issues, the Unusual Put and Call Activity charts are unavailable today. We apologize for any inconvenience.

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