Whipsaw Trading Set to Continue for Dow Jones Industrial Average

How Traders Are Playing the Commodity Boom

by Josh Selway

Published on Aug 28, 2015 at 9:08 AM

After two straight triple-digit wins, futures on the Dow Jones Industrial Average (DJIA) are more than 100 points lower ahead of the open -- just the latest hairpin move in this topsy-turvy week, The potentially disappointing open comes despite another strong day from Chinese markets. However, on the heels of Thursday's promising growth data, this morning's consumer spending and personal income stats -- which arrived roughly in line with estimates -- could keep sentiment from growing too dire. In any case, the Dow will aim to hold its week-to-date lead, which sat at 1.2% as of Thursday's close. 

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

 

And now, on to the numbers…

150828Futures

Futures on the Dow Jones Industrial Average (DJIA) are roughly 117 points below fair value. 

5 Things You Need to Know Today

  1. Stocks in China flourished today, while European bourses are taking a breather.
  2. The CBOE Volatility Index (VIX) fell as stocks gained once again. The VIX settled roughly 14% lower on Thursday, marking its third straight loss
  3. Boeing Co (NYSE:BA) and Apple Inc. (NASDAQ:AAPL) -- among others -- will be working with the Pentagon to develop wearable technology for both people and aircrafts, according to Defense Secretary Ash Carter. It's another fundamental win for AAPL, after yesterday's reports of the company overtaking a peer's primary market -- but AAPL is lower pre-market on reports of an executive departure.
  4. McDonald's Corporation (NYSE:MCD) and Tyson Foods, Inc. (NYSE:TSN) have cut ties with a chicken farm in Tennessee, after leaked footage showed the workers' brutal treatment of the animals -- a decision that would make Ryan Gosling proud
  5. Google Inc (NASDAQ:GOOGL) made it clear on Thursday it's prepared to fight back against the European Union's antitrust allegations. This will likely spark a long, tedious court battle -- but at least for GOOGL shareholders, September is right around the corner

150828OV_Buzz

 

Market Statistics

  • Halliburton Company (NYSE:HAL)Seadrill Ltd (NYSE:SDRL), and Arch Coal Inc (NYSE:ACI) were among the equities with unusual call and put activity on Friday. For the entire list, read Unusual Options Activity: HAL, SDRL, ACI, WDAY, PVH, and ORCL.
  • The Chicago Board Options Exchange (CBOE) saw 941,270 call contracts traded on Thursday, compared to 713,020 put contracts. The resultant single-session equity put/call ratio edged down to 0.76, while the 21-day moving average moved up to 0.77. 
  • For info on currencies, commodities, trading volume, market breadth, and more, read Stock Market Stats for August 27, 2015.

 

Earnings and Economic Data

 

In addition to personal income and spending data and the Thomson Reuters/University of Michigan consumer sentiment index, the Jackson Hole central bankers' conference wraps up today. Regis (RGS) and Bank of Nova Scotia (BNS) will bring the week's earnings to a close. To check out next week's economic schedule, click here


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