Dow Jones Industrial Average Looks Ready to Rebound

Dow Looks to Rebound; Plus, Why Bulls Should Root For a Boring Market

by Josh Selway

Published on Jun 3, 2015 at 8:30 AM
Updated on Jun 3, 2015 at 9:03 AM

After a rocky session yesterday, the Dow Jones Industrial Average (DJIA) is eyeing its second win in the new month, with futures sitting comfortably in the black. U.S. stocks may be getting help from across the pond, as the European Central Bank's (ECB) interest rate decision is boosting equities. Back at home, traders are digesting a slightly stronger-than-expected ADP employment report -- a precursor to Friday's highly anticipated payrolls data -- and are awaiting speeches from Chicago Fed President Charles Evans and St. Louis Fed President James Bullard. 

 

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 nearly 86.1 points above fair value. 

 

Market Statistics

 

The Chicago Board Options Exchange (CBOE) saw 718,968 call contracts traded on Tuesday, compared to 389,004 put contracts. The resultant single-session equity put/call ratio fell to 0.54, while the 21-day moving average remained at 0.63.

 

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Currencies and Commodities

 

  • The U.S. dollar index is up 0.4% at 96.23. 
  • Crude oil has given back 2.1% to trade at $59.98 per barrel. 
  • Gold is down 0.4% at $1,190.20 an ounce. 

 

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Earnings and Economic Data

 

Jobs data starts to roll in today, with ADP's employment report. International trade data, the Institute for Supply Management's (ISM) non-manufacturing index, the weekly crude inventories update, and the Fed's Beige Book are also slated for release. Chicago Fed President Charles Evans and St. Louis Fed President James Bullard are scheduled to speak. Five Below (FIVE) and Vera Bradley (VRA) will step up to the earnings plate. To see what else is on this week's docket, click here.

 

Overseas Trading

 

Asian markets dipped for the most part today. Hong Kong's Hang Seng was the only winner, adding 0.7%, despite disappointing retail figures. After seeing two huge days of gains, profit-taking likely did in China's Shanghai Composite, as the index edged fractionally lower. The same may have been the case in Japan, where the Nikkei dropped 0.3%. Elsewhere, automakers again weighed on South Korea stocks, pushing the Kospi 0.7% lower to two-month lows.

European bourses are moving higher after the ECB opted to leave interest rates unchanged, and ahead of ECB President Mario Draghi's speech on interest rates. Investors are also considering a fresh round of data from Europe -- including a drop in the unemployment rate -- while of course keeping an eye on Greece's debt situation. At last check, Germany's DAX and France's CAC 40 were both boasting 1.1% leads. London's FTSE 100, meanwhile, was up 0.4%. 

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Unusual Put and Call Activity

 

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