Dow Jones Industrial Average Braces for Another Loss as Bond Yields Jump

A 6-Figure Bet Against Apple; Plus, Kardashian Kollection Krumbles

May 7, 2015 at 8:31 AM
facebook twitter linkedin

It looks like the Dow Jones Industrial Average (DJIA) will extend yesterday's losing ways, with futures sitting firmly in negative territory as Treasury yields continue to rise. Today's economic menu is relatively light, with weekly jobless claims in the spotlight ahead of tomorrow's release of the nonfarm payrolls report. On the earnings front, Tesla Motors Inc (NASDAQ:TSLA) and Alibaba Group Holding Ltd (NYSE:BABA) are headed in opposite directions -- lower and higher, respectively -- following their most recent earnings reports.


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


And now, on to the numbers…


Futures on the Dow Jones Industrial Average (DJIA) are 43 points below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 881,868 call contracts traded on Wednesday, compared to 646,786 put contracts. The resultant single-session equity put/call ratio edged down to 0.73, while the 21-day moving average rose to 0.64.



Currencies and Commodities

  • The U.S. dollar index is up 0.1% at 94.19.
  • Crude oil is just above breakeven, inching 0.02% higher to $60.94 per barrel.
  • Gold has declined 0.7% to $1,182.10 per ounce.



Earnings and Economic Data


Today's economic docket features weekly jobless claims. As for earnings, ACADIA Pharmaceuticals (ACAD), Alcatel-Lucent (ALU), Apollo Global Management (APO), Ariad Pharmaceuticals (ARIA), CBS Corporation (CBS), Conatus Pharmaceuticals (CNAT), Cyberark Software (CYBR), Gogo (GOGO), Jazz Pharmaceuticals (JAZZ), Melco Crown Entertainment (MPEL), Molson Coors Brewing (TAP), Monster Beverage (MNST), NVIDIA (NVDA), Orbitz Worldwide (OWW), Priceline (PCLN), Randgold Resources (GOLD), Regeneron Pharmaceuticals (REGN), Rocket Fuel (FUEL), Sarepta Therapeutics (SRPT), SeaWorld Entertainment (SEAS), Sierra Wireless (SWIR), Silver Wheaton (SLW), Tableau Software (DATA), and Zynga (ZNGA) will report. To see what else is on this week's agenda, click here.


Overseas Trading


Asian stocks sold off once again, with traders spooked by yesterday's comments from U.S. Fed Chair Janet Yellen. China's Shanghai Composite tumbled 2.8% on worries over new trading restrictions implemented by regulators. Elsewhere, Japan's Nikkei gave back 1.2%, Hong Kong's Hang Seng dipped 1.3%, and South Korea's Kospi was 0.7% lower.


European benchmarks are sitting firmly in the red at midday, pressured by rising German bond yields. London's FTSE 100 is off 1.2% amid the U.K's general election -- which is expected to end in a hung parliament. Meanwhile, the German DAX and French CAC 40 are off 0.3% and 0.9%, respectively.




Unusual Put and Call Activity






If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners