Dow Jones Industrial Average Eyes Another Huge Gain, Courtesy of Japan

How Traders Are Playing Apple's Big Reveal

by Alex Eppstein

Published on Sep 9, 2015 at 8:48 AM

The Dow Jones Industrial Average (DJIA) is looking to sustain yesterday's positive momentum, with futures up triple digits in electronic trading. U.S. markets are benefiting from a strong day overseas, highlighted by a more than 7% jump for Japan's Nikkei, and ongoing confidence that China's government will take action to prevent an economic slowdown. On the home front, the economic docket is relatively quiet, with most of the attention centered on Apple Inc. (NASDAQ:AAPL) and its upcoming product event.

 

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

 

 

And now, on to the numbers…

 

150909ov1

 

 

Futures on the Dow Jones Industrial Average 2 Minute (DJIA) are more than 142 points above fair value.

 

5 Things You Need to Know Today

 

  1. Stocks in Asia broke out, with Japan's Nikkei posting its largest single-day percentage gain in nearly seven years.
  2. The CBOE Volatility Index (VIX) plunged over 10% yesterday, before finding a level of support at its 20-day moving average. At least one group of option traders appears to be betting against an end-of-year surge on the market's "fear gauge," selling to open the December 37.50 call.
  3. Netflix, Inc. (NASDAQ:NFLX) announced plans to expand into Hong Kong, Singapore, South Korea, and Taiwan by the end of 2016, giving the stock -- which is in the midst of a long losing streak -- a lift ahead of the bell.
  4. United Continental Holdings Inc (NYSE:UAL) CEO Jeff Smisek is resigning over a federal investigation into potential misconduct in the airline's dealings with Port Authority of New York and New Jersey Chair David Samson. Technically speaking, shares of UAL have struggled, and sat out last Friday's analyst-induced sector rally.
  5. While Costco Wholesale Corporation (NASDAQ:COST) has yet to stop selling eggs from caged chickens, McDonald's Corporation (NYSE:MCD) said it will transition to cage-free eggs over the next decade.

 

150909OV_Buzz

 

 

Market Statistics

 

  • AAPL, Yahoo! Inc. (NASDAQ:YHOO), and Chesapeake Energy Corporation (NYSE:CHK) were among the equities with unusual call and put activity on Tuesday. For the entire list, read Unusual Options Activity: AAPL, YHOO, MCHP, and AUY.
  • The Chicago Board Options Exchange (CBOE) saw 622,117 call contracts traded on Tuesday, compared to 408,701 put contracts. The resultant single-session equity put/call ratio fell to 0.66, while the 21-day moving average slipped to 0.76.
  • For info on currencies, commodities, trading volume, market breadth, and more, read Stock Market Stats for September 8, 2015.

Earnings and Economic Data

 

The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) hits the Street today. Barnes & Noble (BKS), Hovnanian Enterprises (HOV), Krispy Kreme Doughnuts (KKD), Ollie's Bargain Outlet (OLLI), Palo Alto Networks (PANW), Quiksilver (ZQK), Sigma Designs (SIGM), and Titan Machinery (TITN) are expected to report earnings. Today also marks the latest AAPL product event. The keynote kicks off at 1 p.m. ET, with the Apple faithful expecting to hear about new versions of the iPhone, iPad, Apple TV, and iOS (and probably at least "one more thing"). To see what else is on this week's docket, click here.


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