Dow Jones Industrial Average Futures Dive 300 Points on Fresh China Fears

The S&P Trendline That Could Signal the Market's Next Move

Sep 1, 2015 at 8:48 AM
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Disappointing data out of China has sent shock waves around the globe, with futures on the Dow Jones Industrial Average (DJIA) down more than 300 points. Yesterday, the blue-chip barometer wrapped up a disastrous August, thanks in no small part to a fresh round of fears over the world's second-largest economy -- and those worries have only intensified today.

Back on the home front, traders will get a glimpse into the strength of the U.S. economy, with updates on auto sales, manufacturing, and construction due. Also in focus will be an afternoon speech from Boston Fed President Eric Rosengren, as well as a sharp reversal for crude oil -- with futures flirting with a 3.3% loss in electronic trading.

 

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

 

And now, on to the numbers…

 

150901ovfutures

 

Futures on the Dow Jones Industrial Average (DJIA) are 353 points below fair value.

 

5 Things You Need to Know Today

 

  1. A pair of dismal economic reports out of China has sparked a sell-off in equities markets around the globe, with Tokyo's benchmark index pacing the slide.
  2. The CBOE Volatility Index (VIX) settled the month of August up 134.6% at 28.43 -- making now as good a time as any to offer up this quick reminder on VIX futures.
  3. Samsung Electronics unveiled its new smartwatch -- the Samsung Gear S2 -- creating fresh competition for Apple Inc. (NASDAQ:AAPL) and Fitbit Inc (NYSE:FIT). Both AAPL and FIT are lower ahead of the bell.
  4. Yahoo! Inc. (NASDAQ:YHOO) CEO Marissa Mayer announced she is expecting twin girls in December, and plans to "take limited time away from work." YHOO is down nearly 3% in electronic trading -- on pace to add to an already dismal year-to-date deficit.
  5. A big second-quarter earnings miss has shares of Dollar Tree, Inc. (NASDAQ:DLTR) bracing for a 5.9% drop out of the gate. Specifically, the company -- which recently acquired a major competitor -- reported adjusted earnings of 25 cents per share, well below the 62 cents expected by analysts.

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Market Statistics

 

  • Twitter Inc (NYSE:TWTR) and The Medicines Company (NASDAQ:MDCO) were among the equities with unusual call and put activity on Monday. For the entire list, read Unusual Options Activity: WLL, TWTR, FOLD, and MDCO.
  • The Chicago Board Options Exchange (CBOE) saw 588,595 call contracts traded on Monday, compared to 386,287 put contracts. The resultant single-session equity put/call ratio plunged to 0.66, while the 21-day moving average edged down to 0.77.
  • For info on currencies, commodities, trading volume, market breadth, and more, read Stock Market Stats for August 31, 2015.

 

Earnings and Economic Data

 

Today will bring the release of the Institute for Supply Management's (ISM) manufacturing index, construction spending, monthly auto and truck sales, and Markit's PMI manufacturing index. Additionally, Boston Fed President Eric Rosengren will deliver a speech on the economic outlook in New York. Ambarella (AMBA), AeroVironment (AVAV), Bob Evans (BOBE), H&R Block (HRB), and Shoe Carnival (SCVL) are slated to announce earnings. To see what else is on this week's agenda, click here.

 

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