Dow Jones Industrial Average Fights to Stay Positive; Chinese Stocks Swoon

How Fund Managers Could Fuel a Bounce for Stocks

by Alex Eppstein

Published on May 5, 2015 at 8:33 AM
Updated on Jun 24, 2020 at 10:16 AM

After two straight days of gains to start the month of May, the Dow Jones Industrial Average (DJIA) is struggling to stay positive this morning, as traders tread cautiously ahead of international trade figures and the Institute for Supply Management's (ISM) non-manufacturing index. However, earnings from blue chip Walt Disney Co (NYSE:DIS) could give the Dow a boost, with the media giant on track to open at a new record high following the release of its quarterly results. Across the pond, traders are jittery as European leaders continue to debate over Greece's aid package, while Chinese stocks got crushed on new margin-trading requirements.

 

Continue reading for more on today's market, including:

 

And now, on to the numbers…

150505ov1

Futures on the Dow Jones Industrial Average (DJIA) are less than 2 points above fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 789,566 call contracts traded on Monday, compared to 431,329 put contracts. The resultant single-session equity put/call ratio dropped to 0.55, while the 21-day moving average edged down to 0.62.

150505ov2

150505ov3

Currencies and Commodities

  • The U.S. dollar index is up 0.04% at 95.52.
  • Crude oil has jumped 1.1% to trade at $59.58 per barrel.
  • Gold is 0.3% higher at $1,190.30 per ounce.

150505ov4

 

Earnings and Economic Data

 

International trade figures and the ISM non-manufacturing index will come out today. Agrium (AGU), Allstate (ALL), Archer-Daniels-Midland (ADM), Bloomin' Brands (BLMN), Devon Energy (DVN), DIRECTV (DTV), Discovery Communications (DISCA), Electronic Arts (EA), Emerson Electric (EMR), Estee Lauder (EL), Fossil (FOSL), Frontier Communications (FTR), Herbalife (HLF), Hyatt Hotels (H), ISIS Pharmaceuticals (ISIS), Kellogg (K), Groupon (GRPN), Mylan (MYL), Myriad Genetics (MYGN), News Corp (NWSA), Office Depot (ODP), RetailMeNot (SALE), Skullcandy (SKUL), SolarCity (SCTY), Sprint (S), VIVUS (VVUS), Weight Watchers International (WTW), and Zulily (ZU) will take the earnings podium. To see what else is on this week's agenda, click here.

 

Overseas Trading

 

Asian markets ended sharply lower, led by the Shanghai Composite -- which plunged 4.1% on news that a number of brokerage firms have tightened margin-financing requirements. It was the mainland index's worst single-day performance in almost four months. Meanwhile, Hong Kong's Hang Seng reversed lower to finish with a 1.3% loss, as gaming stocks were hit by woeful revenue numbers out of Macau. Markets in Japan and South Korea were closed for holiday.

 

European benchmarks are mixed, as traders keep an eye trained on meetings between Greek leaders and other eurozone officials to discuss the nation's bailout program. London's FTSE 100 has tacked on 0.5%, the French CAC 40 is just 0.02% above breakeven, and the German DAX is down 0.2%.

 

150505ov5

 

Unusual Put and Call Activity

 

150505ov6

 

150505ov7



A Schaeffer's 39th Anniversary Exclusive!

8 Top Stock Picks for 2020

Access your FREE insider report before it's too late!


  
 
 

Partnercenter