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

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:

 

• Schaeffer's Senior VP of Research Todd Salamone explained why a pullback could draw fund managers out of hiding.
• Options trading picked up as TASER International, Inc. (NASDAQ:TASR) surged to a record high.
• M&A Monday brought both option bulls and option bears to the table.

And now, on to the numbers…

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.

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.

 

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%.

 

 

Unusual Put and Call Activity

 

 

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