Dow Jones Industrial Average on Pins and Needles; Iran Brings Energy Into Focus

Why Bulls Still Have the Upper Hand

Karee Venema

Jul 14, 2015 at 8:43 AM

DJIA

Following two consecutive 200-point swings higher, futures on the Dow Jones Industrial Average (DJIA) are signaling a slow start. However, there are plenty of market-moving events that Wall Street will be digesting today, including earnings from blue chips JPMorgan Chase & Co. (NYSE:JPM) and Johnson & Johnson (NYSE:JNJ), retail sales, and import and export prices.

Additionally, the energy sector should remain in focus today, after Iran and several world powers reached a historic nuclear deal. The agreement will apply restrictions to Iran's nuclear arms program, and in return, several sanctions will be lifted on the country -- including its ability to increase oil exports.

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

Schaeffer's Senior VP of Research Todd Salamone explains why bulls still have the upper hand.
Second-quarter earnings season is underway, and Bank of America Corp (NYSE:BAC) and eBay Inc (NASDAQ:EBAY) are just two names to keep a close eye on.
A quick primer on 3 ways to play puts.

And now, on to the numbers…

150714ov1

Futures on the Dow Jones Industrial Average (DJIA) are nearly 1 point below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 816,857 call contracts traded on Monday, compared to 452,479 put contracts. The resultant single-session equity put/call ratio plunged to 0.55, while the 21-day moving average stayed at 0.68.

150714OV1

150714OV2

Currencies and Commodities

The U.S. dollar index is down 0.3% at 96.58.
Crude oil is off 0.1% at $52.67 per barrel.
Gold is 0.1% lower at $1,153.80 per ounce.

150714ov4

Earnings and Economic Data

Retail sales for the month of June were released ahead of the bell, along with import and export prices. This data will be followed by the May business inventories report.

As for companies in the news, JNJ will be joined by fellow Dow member JPM in the earnings spotlight. Other notable names reporting earnings are Wells Fargo & Co. (WFC) and YUM! Brands, Inc. (YUM). Watch for a post-close stock split from Netflix, Inc. (NFLX), while Applied Materials, Inc. (AMAT) will hold its analyst day. To see what else is on this week's agenda, click here.

Overseas Trading

For a breakdown of today's trading in Asia and Europe, including what's pressuring global markets, read Overseas Trading: Another Volatile Day in China; Iran Seals Nuclear Deal

Unusual Put and Call Activity

150714OV6

150714OV7

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!