Dow Jones Industrial Average Eyes First Win in Eight

Dow Futures Surge; Plus, the Solar Stock Getting Clobbered

by Alex Eppstein

Published on Aug 10, 2015 at 8:55 AM
Updated on Aug 10, 2015 at 9:25 AM

Dow Jones Industrial Average (DJIA) futures are pointed sharply higher this morning, as optimism rises over an apparently imminent bailout for Greece and a potential stimulus boost for China. As a result, the Dow is on track to snap its longest stretch of daily losses in four years (and additional gains could be forthcoming). On the earnings front, a number of drugmakers are reporting today, including MannKind Corporation (NASDAQ:MNKD) -- which is poised to rally on a narrower-than-expected quarterly loss. There are no major economic reports due out, but traders continue to digest Friday's jobs report, and await a midday speech from Atlanta Fed President Dennis Lockhart.

 

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

 

And now, on to the numbers…

 

150810Futures

 

Futures on the Dow Jones Industrial Average (DJIA) are nearly 114 points above fair value.

 

5 Things You Need to Know Today

 

  1. China's Shanghai Composite soared by its biggest margin in over a month, as downbeat data fueled hopes of stimulus measures.
  2. The CBOE Volatility Index (VIX) jumped more than 10% last week, but ran into headwinds near its 120-day moving average. Volume in the options pits was below average, with 352,000 calls changing hands, versus 121,000 puts. Most active was the August 20 call, where more than 40,000 contracts were added.
  3. Greek banks are set to receive a liquidity injection of up to 10 billion euros, a eurozone official told Reuters, even before stress tests on the institutions are completed.
  4. While activist investor Carl Icahn has been making headlines recently, Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRK.A) is making waves this morning with the $37.2 billion purchase of Precision Castparts Corp. (NYSE:PCP) -- the firm's biggest deal in history.
  5. Days after snagging a new president, Alibaba Group Holding Ltd (NYSE:BABA) has decided to invest $4.6 billion in Chinese electronics chain Suning, giving the former a 20% stake in the retailer.

 

150810buzzchart1

 

 

Market Statistics

 

  • Cheniere Energy, Inc. (NYSEMKT:LNG), J C Penney Company Inc (NYSE:JCP), SYSCO Corporation (NYSE:SYY), and Sunedison Inc (NYSE:SUNE) were among the equities with unusual call and put activity on Friday. For the entire list, read Unusual Options Activity: LNG, JCP, SYY, and SUNE.
  • The Chicago Board Options Exchange (CBOE) saw 711,962 call contracts traded on Friday, compared to 591,001 put contracts. The resultant single-session equity put/call ratio edged up to 0.83, while the 21-day moving average rose to 0.69.
  • For info on currencies, commodities, trading volume, market breadth, and more, read Stock Market Stats for August 7, 2015.
 

Earnings and Economic Data

 

The news slate is light today, with only Lockhart's speech on tap. Turning to earnings, CenterPoint Energy (CNP), Dean Foods Co (DF), Halozyme Therapeutics (HALO), International Flavors & Fragrances Inc (IFF), Kite Pharma Inc (KITE), Kraft Heinz Co (KHC), Rackspace (RAX), Shake Shack (SHAK), and Take-Two Interactive Software, Inc. (TTWO) will all report quarterly results. To see what else is on this week's docket, click here.

 


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