Earnings Weigh On Dow Jones Industrial Average; COMP Aims Higher

The VIX Signal So Rare It's Only Happened Twice

Jul 21, 2015 at 9:29 AM

The Dow Jones Industrial Average (DJIA) is pointed lower ahead of the bell, as traders are unhappy with the latest round of earnings. Specifically, blue chip International Business Machines Corp. (NYSE:IBM) reported disappointing results last night, weighing on the shares ahead of the bell. This morning, meanwhile, Dow components United Technologies Corporation (NYSE:UTX) and Verizon Communications Inc. (NYSE:VZ) are down on a reduced profit forecast and lackluster sales, respectively. Elsewhere, the Nasdaq Composite (COMP) is pointed higher, and could make a run at another all-time record.

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

Schaeffer's Senior VP of Research Todd Salamone calls out the rare VIX signal that happened for the second time ever last week.
This pair of e-commerce stocks fared very differently on Monday.
Based on recent history, these 2 big-caps could make major moves after reporting earnings tonight.

And now, on to the numbers…

150721ov1

Futures on the Dow Jones Industrial Average (DJIA) are more than 46 points below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.03 million call contracts traded on Monday, compared to 579,921 put contracts. The resultant single-session equity put/call ratio inched up to 0.56, while the 21-day moving average held steady at 0.68.

150721ov2

150721ov3

Currencies and Commodities

The U.S. dollar index is down 0.2% at 97.84.
Crude oil has edged up a slim 0.04% at $50.46 per barrel.
Gold is extending its slide, off another 0.1% at $1,105.50 per ounce.

150721ov4

Earnings and Economic Data

There are no notable economic reports today. Apple Inc. (AAPL), Microsoft (MSFT), Travelers (TRV), GoPro Inc (GPRO), Yahoo! Inc. (YHOO), VMware (VMW), Chipotle Mexican Grill (CMG), Linear Technologies (LLTC), Intuitive Surgical (ISRG), Baker Hughes (BHI), Fifth Third Bancorp (FITB), Harley-Davidson (HOG), Lockheed Martin (LMT), Novartis AG (NVS), and TD Ameritrade (AMTD) are among the many names reporting. To see what else is on this week's docket, click here.

Overseas Trading

For a breakdown of today's trading in Asia and Europe, including a strong showing among Japanese airlines, read Overseas Trading: Asia Stocks Rally, Shrugging Off Commodity Slump.

Unusual Put and Call Activity

150721ov5

150721ov6

Follow @Schaeffers

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!