Dow Jones Industrial Average Poised For Triple-Digit Kickoff

What's Next for the S&P 500?

by Josh Selway

Published on Aug 27, 2015 at 9:05 AM
Updated on Jun 24, 2020 at 10:16 AM

The Dow Jones Industrial Average (DJIA) is building off of yesterday's huge win, with futures signaling another triple-digit pop at the open. Investor sentiment received an early boost, thanks to a major turnaround from Chinese equities and an upwardly revised preliminary reading for second-quarter gross domestic product (GDP). Following yesterday's dovish comments from a key Fed official, traders now have yet another data point to include in their rate-hike calculus. As a result, investors will likely keep a close eye trained on the first day of the Jackson Hole Economic Policy Symposium -- though Fed Chair Janet Yellen will not be in attendance. 

 

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

 

  • What to expect now that the S&P 500 Index's (SPX) historic losing streak is over. 
  • Bears have been betting on 20-year lows for this commodity stock. 
  • Another look at Wednesday's $15 billion mega-deal in the oil-and-gas sector. 
  • 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…

150827Futures

Futures on the Dow Jones Industrial Average (DJIA) are 144.5 points above fair value. 

5 Things You Need to Know Today

  1. Stocks around the globe are following Wall Street's bullish lead, with a rebound in China leading the way. 
  2. The CBOE Volatility Index (VIX) took another step back Wednesday as stocks scorched higher. The "fear gauge" is still a safe distance from the level we've been watching this week, however. 
  3. Investors are cheering Seadrill Ltd's (NYSE:SDRL) second-quarter earnings call. The firm announced a drop in quarterly profits, but encouraged shareholders with a plan to reduce spending by $500 million. Before the open, SDRL is 3.7% higher -- though that's less than half the move the Street was expecting
  4. E-commerce giant Amazon.com, Inc. (NASDAQ:AMZN) is also pointed higher in electronic trading after receiving yet another bullish analyst note. Raymond James raised its outlook on the shares to a "strong buy," pushing the equity 2.4% higher in pre-market action. 
  5. Another pre-market winner is medical device maker St. Jude Medical, Inc. (NYSE:STJ). The stock has picked up 4.5%, even though Abbott Laboratories (NYSE:ABT) has denied a Financial Times report that it was working on a $25 billion buyout offer for the firm. Today's speculation continues a recent trend, as M&A buzz has been swirling around STJ all summer. 

150827OV_Buzz2

Market Statistics

  • McDonald's Corporation (NYSE:MCD), The Coca-Cola Co(NYSE:KO), and Transocean LTD (NYSE:RIG) were among the equities with unusual call and put activity on Wednesday. For the entire list, read Unusual Options Activity: NQ, KO, MCD, LULU, and RIG.
  • The Chicago Board Options Exchange (CBOE) saw 810,339 call contracts traded on Wednesday, compared to 687,228 put contracts. The resultant single-session equity put/call ratio moved up to 0.85, while the 21-day moving average edged higher to 0.76.
  • For info on currencies, commodities, trading volume, market breadth, and more, read Stock Market Stats for August 26, 2015.

 

Earnings and Economic Data

 

Aside from the GDP announcement, weekly jobless claims, pending home sales, and natural gas inventories are also on the schedule. 

Meanwhile, retail earnings just don't stop. Today's docket includes quarterly results from 1-800-FLOWERS (FLWS), Aeropostale (ARO), bebe stores (BEBE), Dollar General (DG), GameStop (GME), Tiffany & Co (TIF), and Ulta Salon (ULTA). Outside of retail, Autodesk (ADSK), J.M. Smucker (SJM), OmniVision Technologies (OVTI), SDRL, Splunk (SPLK), and Smith & Wesson (SWHC) are also set to report. Click here to view Friday's economic docket


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