Dow Jones Industrial Average Hit By Soaring Bond Yields

Why Analysts Believe This Biotech is Headed for Record Highs

by Josh Selway

Published on Jun 4, 2015 at 8:35 AM
Updated on Jun 4, 2015 at 8:51 AM

A sell-off in the bond market has Dow Jones Industrial Average (DJIA) futures decisively lower this morning. The 10-year Treasury yield hit a 2015 high earlier, following the lead of its German counterpart after European Central Bank (ECB) President Mario Draghi on Wednesday offered an upwardly revised forecast for eurozone inflation. Aside from the turmoil with bonds, traders will have jobless claims to digest, on top of productivity and labor costs -- which will both try to match the high bar set by yesterday's data

 

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

 

And now, on to the numbers…

150604Futures

Futures on the Dow Jones Industrial Average (DJIA) are 47.3 points below fair value. 

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 769,105 call contracts traded on Wednesday, compared to 393,757 put contracts. The resultant single-session equity put/call ratio edged down to 0.51 -- its most call-skewed since April 6 -- while the 21-day moving average dropped to 0.62.

 

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Currencies and Commodities

  • The U.S. dollar index is down 0.7% at 94.84. 
  • Crude oil is slightly higher, adding 0.3% at $59.82 per barrel. 
  • Gold is down 0.2% at $1,182.10 per ounce.
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    Earnings and Economic Data

     

    Today's docket features weekly jobless claims, productivity and labor costs, as well as a speech from Fed Governor Daniel Tarullo. Analogic (ALOG), Ciena (CIEN), Diamond Foods (DMND), J. M. Smucker (SJM), Joy Global (JOY), Lands' End (LE), VeriFone Systems (PAY), and Zumiez (ZUMZ) are scheduled to unveil their earnings reports. To see what else is on this week's docket, click here.

     

    Overseas Trading

     

    Asian stocks ended mostly higher. In a startlingly volatile session due to liquidity concerns, China's Shanghai Composite finished with a 0.8% lead. South Korea's Kospi put an end to its losing streak by adding 0.5% on the heels of an upwardly revised gross domestic product (GDP) reading. Also moving higher was Japan's Nikkei, picking up 0.1%, while Hong Kong's Hang Seng settled 0.4% lower. 

    On the other hand, European equities are in the midst of a sharp sell-off, as bond yields have skyrocketed on fears it could take Greece longer than expected to settle its debt issues. London's FTSE 100 and Germany's DAX are each 1.3% lower. Even worse off is France's CAC 40, which has fallen 1.6%. 

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    Unusual Put and Call Activity

     

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