Dow Jones Industrial Average Futures in Rally Mode as Fed Kicks Off

2 Types of Traders Who Could Push Stocks Higher

Josh Selway

Jul 28, 2015 at 8:33 AM

The Dow Jones Industrial Average (DJIA) is looking to put its losing ways in the rearview, with futures pointed sharply higher despite a continued sell-off in China. Though interest rates aren't expected to rise this month, traders will be absorbed by the Federal Open Market Committee's (FOMC) two-day policy-setting meeting, which begins today. It's also another big day for earnings -- plus, the S&P/Case-Shiller home price index will be released, along with the Conference Board's consumer confidence survey.

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

2 groups of traders that could support equities, according to Schaeffer's Senior Equity Analyst Joe Bell, CMT.
How one airline lost half its value in a matter of hours.
A look at how traders are preparing for tonight's Twitter Inc (NYSE:TWTR) earnings.

And now, on to the numbers…

150728Futures

Futures on the Dow Jones Industrial Average (DJIA) are 109.4 points above fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 739,156 call contracts traded on Monday, compared to 544,485 put contracts. The resultant single-session equity put/call ratio slid to 0.74, while the 21-day moving average remained at 0.71.

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Currencies and Commodities

The U.S. dollar index is up 0.5% at 96.95.
Crude oil has dropped 0.6% to 47.12 per barrel.
Gold is off 0.4% at $1,092.70 per ounce.

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Earnings and Economic Data

The FOMC's policy meeting kicks off today, with the final decision due out tomorrow. In addition, the S&P/Case-Shiller home price index and the Conference Board's consumer confidence survey are due out.

The earnings calendar is full, featuring DuPont (DD), Merck (MRK), Pfizer (PFE), Ford Motor (F), TWTR, Sirius XM (SIRI), SunPower (SPWR), Gilead Sciences (GILD), Aflac (AFL), Akamai Technologies (AKAM), AK Steel (AKS), Anadarko Petroleum (APC), BP plc (BP), Buffalo Wild Wings (BWLD), Citrix Systems (CTXS), Corning (GLW), Cummins (CMI), D.R. Horton (DHI), Edwards Lifesciences (EW), GrubHub (GRUB), JetBlue Airways (JBLU), LyondellBasell (LYB), National Oilwell Varco (NOV), Panera Bread (PNRA), Peabody Energy (BTU), Reynolds American (RAI), U.S. Steel (X), Wyndham Worldwide (WYN), and Yelp (YELP). 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 the latest efforts by Chinese regulators, read Overseas Trading: China Drops Again; Europe Rises On Earnings.

Unusual Put and Call Activity

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