Dow Jones Industrial Average Set to Soar on Chinese Stimulus Hopes

10 Rules for Fantasy Football (and Trading Options)

Sep 8, 2015 at 8:53 AM
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Following the long weekend, the Dow Jones Industrial Average (DJIA) is primed to soar close to 270 points at the open -- which would erase most of Friday's steep losses. The Dow is taking a cue from stocks in China and Europe amid hopes of additional Chinese stimulus. Meanwhile, crude oil continues to struggle as oversupply worries linger, with the September futures contract fractionally lower this morning at $45.66 per barrel.

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

  • What sent these 2 airline issues -- and several of their sector peers -- soaring.
  • How this indicator can help you win with straddles.
  • 10 reasons successful options traders can make great fantasy football players.
  • 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…

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Futures on the Dow Jones Industrial Average (DJIA) are nearly 269 points above fair value.

5 Things You Need to Know Today

  1. Stocks in China rallied sharply as steep drops in imports and exports fueled speculation Beijing could step in once again.
  2. The CBOE Volatility Index (VIX) jumped 8.6% on Friday to close at 27.80 -- its second-highest weekly close in nearly four years. The most active VIX option was the September 20 put, which was apparently bought to open as speculators brace for a big volatility decline over the next week.
  3. Fresh off the debut of its new line of Star Wars toys, Walt Disney Co (NYSE:DIS) announced a significant expansion to its cloud-based digital movie service, Disney Movies Anywhere -- which has the entertainment giant partnering with Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT).
  4. Media General Inc (NYSE:MEG) is on the move this morning, after the multimedia firm agreed to purchase sector peer Meredith Corporation (NYSE:MDP) for $2.4 billion in cash and stock. MEG is up 8.5% ahead of the bell, while MDP has popped more than 12%.
  5. While all eyes are on Apple Inc. (NASDAQ:AAPL) ahead of tomorrow's product event, AMZN is attempting to steal the spotlight. Sources told The Wall Street Journal [subscription required] that the mega-retailer plans to release a 6-inch tablet costing only $50 -- dramatically undercutting AAPL's iPad.

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Market Statistics

  • Yamana Gold Inc. (USA) (NYSE:AUY), VeriFone Systems Inc (NYSE:PAY), and Joy Global Inc. (NYSE:JOY) were among the equities with unusual call and put activity on Friday. For the entire list, read Unusual Options Activity: DAL, AUY, PAY, and JOY.
  • The Chicago Board Options Exchange (CBOE) saw 535,567 call contracts traded on Friday, compared to 475,878 put contracts. The resultant single-session equity put/call ratio jumped to 0.89, while the 21-day moving average remained at 0.77.
  • For info on currencies, commodities, trading volume, market breadth, and more, read Stock Market Stats for September 4, 2015.

Earnings and Economic Data

Today's economic docket is light, with the NFIB small-business optimism index and the Fed's consumer credit report due out. On the earnings front, we'll hear from Dave & Buster's (PLAY), FuelCell Energy (FCEL), Men's Wearhouse (MW), Pacific Sunwear (PSUN), TiVo (TIVO), Triangle Petroleum (TPLM), and Yingli Green Energy (YGE). To see what else is on this week's agenda, click here.

 

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