Dow Jones Industrial Average Set to Drop After China Gets Hammered

China's Worst Day in 8 Years Sends Dow Futures Spiraling

by Josh Selway

Published on Jul 27, 2015 at 8:43 AM
Updated on Jul 27, 2015 at 8:47 AM

Dow Jones Industrial Average (DJIA) futures are pointed lower to start the week, as investors make sense of China's jaw-dropping sell-off. Although earnings don't really pick up until tomorrow -- with Twitter Inc (NYSE:TWTR), Ford Motor Company (NYSE:F), and Yelp Inc (NYSE:YELP) among those presenting -- investors are hoping for stronger numbers than they saw last week.

Looking ahead, the Federal Open Market Committee's (FOMC) two-day policy-setting meeting is slated to begin tomorrow, and investors will be watching for any new clues on the Fed's rate-hike timeline. Meanwhile, in equity news today, the early buzz is centered on Teva Pharmaceutical Industries Ltd's (NYSE:TEVA) decision to purchase Allergan PLC's (NYSE:AGN) generic drug business for over $40 billion. 

 

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

 

And now, on to the numbers…

150727Futures

Futures on the Dow Jones Industrial Average (DJIA) are 70.5 points below fair value. 

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 877,490 call contracts traded on Friday, compared to 754,525 put contracts. The resultant single-session equity put/call ratio rose to 0.86, while the 21-day moving average edged up to 0.71.

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Currencies and Commodities

  • The U.S. dollar index is down 0.6% at 96.68. 
  • Crude oil is off 1% at $47.64 per barrel. 
  • Gold has added 0.7% to hit $1,093.80 per barrel. 

150727Currencies

 

Earnings and Economic Data

 

The week kicks off with durable goods orders and the Dallas Fed manufacturing survey. Stepping up to the earnings plate are Baidu (BIDU), Hartford Financial (HIG), Norfolk Southern (NSC), Rent-A-Center (RCII), and Sohu.com (SOHU). 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 the catalysts behind China's worst single-day slump since 2007, read Overseas Trading: Shanghai Stocks Swallow Steepest Loss In Years

 

 

Unusual Put and Call Activity

 

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