Dow Jones Industrial Average Futures Plunge on Soft Payrolls, Hawkish Lacker

Dow Futures Plummet 178 on Payrolls Miss

Sep 4, 2015 at 8:56 AM
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The Dow Jones Industrial Average (DJIA) appears to be headed into the long weekend on a negative note, with futures reeling -- and on track to erase all of the hard-won gains of the past two sessions. Today's focus is on the Labor Department's nonfarm payrolls report, which could play a critical role in the Fed's rate-hike timeline. Specifically, the U.S. added 173,000 jobs last month -- the lowest amount in five months -- while the unemployment rate fell to a seven-year low of 5.1%. Meanwhile, Richmond Fed President Jeffrey Lacker asserted in a speech this morning that ongoing strength in the jobs market no longer justifies rock-bottom interest rates, despite any isolated rough patches in the data.

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

 

 And now, on to the numbers…

 

150904ovfutures

Futures on the Dow Jones Industrial Average (DJIA) are nearly 179 points below fair value.

 

5 Things You Need to Know Today

 

  1. Anxiety ahead of today's nonfarm payrolls report pressured global markets, with Japan's Nikkei plunging 2.2%.
  2. The CBOE Volatility Index (VIX) gave back 1.8% on Thursday to settle at 25.61. In the options pits, one deep-pocketed speculator paid roughly $85 million to initiate a long put spread at the September 19 and 20 strikes.
  3. Netflix, Inc. (NASDAQ:NFLX) is down 3% in electronic trading, and set to open in double-digit territory. The stock has endured some choppy trading this week on news AAPL may be throwing its hat into the original content ring, and NFLX is now testing a historically significant trendline.
  4. Vince Holding Corp (NYSE:VNCE) is bracing for a 35% plunge out of the gate -- and a move into record-low territory -- after the fashion firm reported disappointing second-quarter earnings and lowered its full-year sales forecast. Additionally, VNCE appointed an interim CEO and CFO to temporarily fill roles vacated earlier this summer.
  5. Alcoa Inc (NYSE:AA) is bringing the heat to 3D Systems Corporation (NYSE:DDD), unveiling plans to invest $60 million in a 3-D printing facility. AA said Wednesday the manufacturing center will be located in Pittsburgh, Pennsylvania, and is set to be completed in the first quarter of 2016.

 

150904OV_Buzz

 

 

Market Statistics

 

  • Tesla Motors Inc (NASDAQ:TSLA), Ambarella Inc (NASDAQ:AMBA), and Lannett Company, Inc. (NYSE:LCI) were among the equities with unusual call and put activity on Thursday. For the entire list, read Unusual Options Activity: TSLA, LCI, JOY, and AMBA.
  • The Chicago Board Options Exchange (CBOE) saw 617,988 call contracts traded on Thursday, compared to 421,553 put contracts. The resultant single-session equity put/call ratio fell to 0.68, while the 21-day moving average stayed at 0.77.
  • For info on currencies, commodities, trading volume, market breadth, and more, read Stock Market Stats for September 3, 2015.

 

Earnings and Economic Data

 

Today's main event is the aforementioned nonfarm payrolls report, as well as Lacker's speech -- which, given that it was titled "The Case Against Further Delay," is predictably hawkish. The earnings calendar is bare. To see what's on next week's agenda -- including a big announcement from AAPL -- click here.

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