Dow Jones Industrial Average Futures Rally on Cisco Earnings Beat

Are Small-Caps in Danger?

by Alex Eppstein

Published on Aug 13, 2015 at 8:57 AM

After the Dow Jones Industrial Average's (DJIA) impressive comeback yesterday, futures are following overseas benchmarks higher, helped by an earnings beat from blue chip Cisco Systems, Inc. (NASDAQ:CSCO). Meanwhile, traders are gearing up for a busy day on the economic front, with jobless claims, retail sales, and other reports in focus.

 

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

 

  • Should traders sweat yesterday's bearish signal on the Russell 2000 Index (RUT)?
  • Why Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) may be on a collision course.
  • The solar stock that took traders on a wild ride.
  • Plus … 5 things you need to know this morning -- including stocks making waves, what's happening overseas, and the latest in unusual option activity.

And now, on to the numbers…

 

150813ov1

 

Futures on the Dow Jones Industrial Average (DJIA) are more than 43 points above fair value.

 

5 Things You Need to Know Today

 

  1. Stocks in China jumped as a high-ranking official went to bat for the nation's recent string of currency decisions.
  2. The CBOE Volatility Index (VIX) popped out of the gate yesterday, but reversed lower to end on a small loss. Meanwhile, VIX option volume ran at nearly triple the expected amount, as one trader closed out a massive three-legged bullish spread at the August 16 and 18 call strikes and August 12.50 put strike.
  3. Tesla Motors Inc (NASDAQ:TSLA), which recently slashed its full-year delivery forecast, announced plans to raise roughly $500 million by selling 2.1 million shares.
  4. Blue chip CSCO's first earnings report under new CEO Chuck Robbins went well, with quarterly profit and sales numbers topping estimates -- sending the shares up 3.4% pre-market.
  5. While IAC/InterActiveCorp's (NASDAQ:IACI) hook-up app Tinder has managed to avoid getting hacked (unlike one more controversial rival), CEO Christopher Payne is stepping down after only five months, to be replaced by founder Sean Rad.

 

150813OV_Buzz

 

 

Market Statistics


  • Macy's, Inc. (NYSE:M), J C Penney Company Inc (NYSE:JCP), and Yahoo! Inc. (NASDAQ:YHOO) were among the equities with unusual call and put activity on Wednesday. For the entire list, read Unusual Options Activity: M, JCP, YHOO, INGN.
  • The Chicago Board Options Exchange (CBOE) saw 887,955 call contracts traded on Wednesday, compared to 736,374 put contracts. The resultant single-session equity put/call ratio rose to 0.83, while the 21-day moving average inched up to 0.71.
  • For info on currencies, commodities, trading volume, market breadth, and more, read Stock Market Stats for August 12, 2015.
 Earnings and Economic Data

 

Today's economic lineup features weekly jobless claims, retail sales, import and export prices, and business inventories. Advance Auto Parts, Inc. (AAP), Applied Materials, Inc. (AMAT), CafePress Inc (PRSS), El Pollo LoCo Holdings Inc (LOCO), Kohl's Corporation (KSS), Nordstrom, Inc. (JWN), Pan American Silver (PAAS), Tribune Media Co. (TRCO), and YY Inc (YY) will announce quarterly earnings. To see what else is on this week's docket, click here.


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