Dow Jones Industrial Average Futures Jump on China Stimulus

The People's Bank of China surprised some with its actions

Josh Selway

Apr 20, 2015 at 8:40 AM

After last week's horrific ending, the Dow Jones Industrial Average (DJIA) is set to jump to an early lead, thanks to an effort by the People's Bank of China (PBoC) to add liquidity to the market. While there are no major economic events on the calendar, we will see some prominent names release earnings, including Dow component IBM (NYSE:IBM) and crude giant Halliburton Company (NYSE:HAL). Speaking of crude, it's currently extending its losses from Friday, down more than 1% ahead of the open.

Taking stock of this $1.5 million bet on FirstSolar, Inc. (NASDAQ:FSLR).
These option bulls are hoping Hasbro, Inc. (NASDAQ:HAS) can replicate this sector peer's post-earnings success.
3 stocks that made sharp moves on analyst notes.

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 117 points above fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.2 million call contracts traded on Friday, compared to 877,867 put contracts. The resultant single-session equity put/call ratio jumped to 0.74, while the 21-day moving average remained at 0.64.

Currencies and Commodities

The U.S. dollar index is up 0.5% at 97.96.
Crude oil has fallen 1.3% to trade at $56.55 per barrel.
Gold is off 0.4% at $1,198.00 per ounce.

Earnings and Economic Data

There are no notable economic reports scheduled today. However, IBM, HAL, HAS, Steel Dynamics (STLD), and Morgan Stanley (MS) will report earnings. To see what else is on this week's agenda, click here.

Overseas Trading

Asian stocks ended mostly lower today, after the PBoC slashed its reserve requirement ratio by a steeper-than-expected margin. China's Shanghai Composite was able to touch yet another seven-year-high in intraday action, but closed 1.6% lower. Japan's Nikkei closed with a 0.1% loss, with Hong Kong's Hang Seng sliding 2%. South Korea's Kospi, on the other hand, was able to edge out a 0.2% lead.

Unlike their Asian counterparts, European stocks were mostly higher at last check. Germany's DAX is paving the way upward with a 1.7% gain. London's FTSE 100 has added 0.7%, with France's CAC 40 tacking on 0.5%.

Unusual Put and Call Activity:

Due to issues with our data provider, the unusual put and call charts are unavailable today. We apologize for the inconvenience.

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!