Dow Braces for a Pullback; Chinese Stocks Slammed

4 Stocks Set to Pop in June

Alex Eppstein
May 28, 2015 at 8:34 AM
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The Dow Jones Industrial Average (DJIA) is bracing for a pullback from yesterday's triple-digit win, amid dashed hopes that Greece and its lenders are nearing a bailout deal. On the home front, traders are gearing up for the latest unemployment data and pending home sales figures. In other news, Avago Technologies Ltd (NASDAQ:AVGO) is making headlines, after agreeing to buy Broadcom Corporation (NASDAQ:BRCM) for $37 billion in cash and stock -- confirming earlier speculation.

 

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

 

 And now, on to the numbers…

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Futures on the Dow Jones Industrial Average (DJIA) are roughly 52 points below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 739,801 call contracts traded on Wednesday, compared to 430,444 put contracts. The resultant single-session equity put/call ratio dropped to 0.58, while the 21-day moving average held at 0.64.

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Currencies and Commodities

  • The U.S. dollar index is up just 0.03% at 97.40.
  • Crude oil has slipped 0.1% to $57.45 per barrel.
  • Gold has edged 0.1% higher to trade at $1,187.60 per ounce.

 

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Earnings and Economic Data

 

Weekly jobless claims, pending home sales, and the holiday-delayed crude inventories report are due out today. Companies slated to report earnings include Abercrombie & Fitch (ANF), AVGO, Deckers Outdoor (DECK), GameStop (GME), JinkoSolar (JKS), OmniVision Technologies (OVTI), Pacific Sunwear (PSUN), Seadrill (SDRL), Splunk (SPLK), and Ulta Salon, Cosmetics & Fragrance (ULTA). To see what else is on this week's agenda, click here.

 

Overseas Trading

 

Asian markets finished mixed, but were dominated by a 6.5% sell-off on China's Shanghai Composite -- the biggest single-day drop in four months. Specifically, mainland stocks struggled amid reports that brokerages are tightening margin financing requirements. Hong Kong's Hang Seng followed suit, sliding 2.2%. However, Japan's Nikkei muscled 0.4% higher for a 10th straight daily win, as continued softness in the yen offset weaker-than-expected retail sales data, and South Korea's Kospi edged up 0.2%.

 

European benchmarks are mostly lower, after European Commission Vice President Valdis Dombrovskis said Greece and its lenders are far apart in debt negotiations. The fiscal uncertainty in Greece figures to be a main topic of conversation among the Group of Seven, which kicked off a two-day meeting in Dresden. At last check, the French CAC 40 and German DAX are down 0.5% and 0.4%, respectively. On the flip side, London's FTSE 100 has gained 0.1%, as upbeat retail earnings narrowly outweigh an underwhelming U.K. gross domestic product (GDP) reading.

 

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Unusual Put and Call Activity

 

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