Dow Jones Industrial Average Futures Rattled by Rate Hike Worries

Dow Drops as Payrolls Beat; Plus, 2 Stocks Fighting Back Against Short Sellers

Jun 5, 2015 at 8:39 AM
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Futures on the Dow Jones Industrial Average (DJIA) have reversed early gains, after the nonfarm payrolls report for May beat expectations -- signaling strength within the U.S. economy, but stoking worries of an imminent rate hike. Specifically, the U.S. economy added 280,000 jobs in May, topping estimates for an increase of about 225,000. It'll now be even more interesting to hear from New York Fed President William Dudley, who is scheduled to speak this afternoon. Elsewhere, traders are also looking at the Organization of Petroleum Exporting Countries' (OPEC) decision to maintain current oil production levels, with crude futures gaining ground early. As it stands now, the Dow, Nasdaq Composite (COMP), and S&P 500 Index (SPX)​ are all set to finish lower on the week. 

 

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 2.6 points below fair value. 

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 823,072 call contracts traded on Thursday, compared to 503,836 put contracts. The resultant single-session equity put/call ratio moved up to 0.61, while the 21-day moving average remained at 0.62.

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Currencies and Commodities

  • The U.S. dollar index is up 0.2% at 95.66.
  • Crude oil has added 0.5% at $58.29 per barrel.
  • Gold is down 0.1% at $1,174 per ounce. 
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    Earnings and Economic Data

     

    The Labor Department's nonfarm payrolls report headlines today's docket, along with an early afternoon speech from New York Fed President William Dudley. Yingli Green Energy (YGE) will tell all in the earnings confessional. To see what's on next week's schedule, click here

     

    Overseas Trading

     

    Stocks in Asia closed mostly lower. The lone bright spot was China's Shanghai Composite, despite another volatile session amid fresh margin-lending curbs. The index closed at a seven-year high, boasting a 1.5% gain. Hong Kong's Hang Seng moved 1.1% in the opposite direction, with Japan's Nikkei falling 0.1%. In South Korea, the Kospi gave back 0.2% as traders considered the recent MERS outbreak, which has claimed four lives.

    European bourses are selling off for the second straight day, with investors frowning at Greece's decision to postpone repaying its debt while also training a keen eye on the U.S. jobs situation. At last check, France's CAC 40 was down 1.5%, trailed by Germany's DAX, off 1.3%. Elsewhere, London's FTSE 100 has given back 0.9%. 

     

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    Unusual Put and Call Activity

     

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