Dow Jones Industrial Average's Weekly Gain at Risk

How to Get Paid to Buy Stocks; Plus, GoPro's Big Bounce

Aug 14, 2015 at 9:05 AM
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After fighting to keep its head above water yesterday, the Dow Jones Industrial Average (DJIA) is headed south ahead of the bell -- and at risk of erasing its weekly gains. Currently, traders are digesting an earnings beat from J C Penney Company Inc (NYSE:JCP), and looking ahead to a number of economic reports, including the latest consumer sentiment data. In fact, the producer price index (PPI) just hit the Street, revealing wholesale inflation rose for a third straight month. Overseas, Greece's parliament approved a third bailout pact with international lenders, putting the onus on a group of eurozone finance ministers -- gathered today in Brussels -- to rubber-stamp the deal.

 

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

 

  • Following a tough session on Wednesday, find out the catalyst that helped GoPro Inc (NASDAQ:GPRO) bounce back yesterday.
  • Want to get paid to buy stocks? Consider this options strategy.
  • Why Transocean LTD (NYSE:RIG) and Keryx Biopharmaceuticals (NASDAQ:KERX) dropped 6% yesterday.
  • 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…

 

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Futures on the Dow Jones Industrial Average (DJIA) are roughly 27 points below fair value.

 

5 Things You Need to Know Today

 

  1. Chinese stocks closed with a modest gain as the yuan stabilized, while markets in Europe are lower after a round of unimpressive growth data.
  2. The CBOE Volatility Index (VIX) gave up a little ground yesterday, but found a foothold atop its 10- and 20-day moving averages. Call volume roughly tripled put volume, with the day's biggest trades taking place at the deep out-of-the-money September 25 and 30 calls. 
  3. After announcing a $500 million stock offering yesterday, Tesla Motors Inc (NASDAQ:TSLA) said today it has raised the total to $642.5 million, which will help the company expand its auto and energy storage businesses.
  4. General Motors Company (NYSE:GM) recently took a China-related hit, and more downside could be in store, after the automaker announced a recall of more than 73,000 Chevy Cobalts in the U.S. and Canada.
  5. Days after General Electric Company (NYSE:GE) sold its healthcare financial services unit, subsidiary GE Capital announced the sale of its U.S. online deposits business to Goldman Sachs Group Inc (NYSE:GS).

 

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Market Statistics

 

  • Nordstrom, Inc. (NYSE:JWN), Cisco Systems, Inc. (NASDAQ:CSCO), and Foot Locker, Inc. (NYSE:FL) were among the equities with unusual call and put activity on Thursday. For the entire list, read Unusual Options Activity: SEDG, JWN, CSCO, and FL.
  • The Chicago Board Options Exchange (CBOE) saw 640,879 call contracts traded on Thursday, compared to 473,653 put contracts. The resultant single-session equity put/call ratio dropped to 0.74, while the 21-day moving average remained at 0.71.
  • For info on currencies, commodities, trading volume, market breadth, and more, read Stock Market Stats for August 13, 2015.
 

Earnings and Economic Data

 

Rounding out the week are industrial production and capacity utilization stats, and the Thomson Reuters/University of Michigan consumer sentiment index. In addition, Secretary of State John Kerry is expected to make a historic trip to Havana, Cuba, to raise the flag over the U.S. embassy. No notable earnings are on tap.

 

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