Dow Jones Industrial Average Set for 395-Point Surge

The Dow Jones Industrial Average (DJIA) is set to take investors on a wild ride once again. After suffering a nearly 600-point fall on Monday, futures on the blue-chip index surged by the same amount earlier this morning. The Dow is tracking big gains in Europe, after continued losses for China's benchmark index prompted policymakers to cut interest rates yet again. Back on the home front, traders will check the pulse of the housing sector: the S&P/Case-Shiller home price index and new home sales will be released today; plus, homebuilder Toll Brothers Inc (NYSE:TOL) just revealed its quarterly earnings. 

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

• As investor fear ramps up, Schaeffer's Senior VP of Research Todd Salamone breaks down the level to watch on the CBOE Volatility Index (VIX). 
• How option traders have been playing this China-based Internet stock. 
• With oil wallowing at more than six-year lows, analysts are seemingly throwing in the towel on Halliburton Company (NYSE:HAL) and its Dow-component peer.
• 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…

Futures on the Dow Jones Industrial Average (DJIA) are almost 395 points above fair value. 

5 Things You Need to Know Today

1. While markets in China and Japan suffered severe losses, European bourses are soaring at midday. 
2. The CBOE Volatility Index (VIX) exploded to hit six-year highs on Monday.  However, as our Andrea Kramer reported, the VIX pop didn't start right out of the gate, as "chaotic" market action resulted in unusable quotes on SPX options for the session's first 30 minutes.
   
3. Electronics retailer Best Buy Co Inc (NYSE:BBY) is set to jump over 14% at the open, thanks to better-than-expected second-quarter numbers. With more than 10% of BBY's float sold short, the stock seems set to benefit from a burst of short-covering activity.
   
4. Even though TOL missed the Street's expectations with its fiscal third-quarter numbers, the company reported a 12% rise in home orders for the period -- an encouraging sign for the housing sector. 
5. On Monday, President Barack Obama admonished fossil fuel advocates for attempting to thwart the progress of renewable energy sources, such as wind and solar. At a green energy conference, Obama revealed new efforts meant to promote renewable energy for businesses and consumers. 
   

    

Market Statistics

Earnings and Economic Data

On top of the aforementioned housing data, the Conference Board's consumer confidence index will be released today. Retailers DSW Inc. (DSW) and Childrens Place (PLCE) are set to report earnings, while Bank of Montreal (BMO), Daktronics (DAKT), ReneSola (SOL), and Solera (SLH) will also announce quarterly results.  To see what else is on this week's agenda, click here.