Dow Jones Industrial Average Pointed Lower to Kick Off Fed Week

3 Sizzling Small-Caps and the Signal Not Seen Since 2006

by Josh Selway

Published on Sep 14, 2015 at 9:03 AM

Futures on the Dow Jones Industrial Average (DJIA) are signaling a cautious start to the week Fed watchers have been anxiously awaiting. The Street will likely be consumed by the Federal Open Market Committee's (FOMC) two-day policy meeting, which will culminate in a highly anticipated rate-hike decision on Thursday. Until then, investors will search for clues as to whether Fed Chair Janet Yellen & Co. will raise interest rates for the first time in nearly a decade. Global markets aren't exempt from the pre-Fed worries, as stocks in Asia and Europe are mostly lower

 

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

 

And now, on to the numbers…

 

150914Futures

 

Futures on the Dow Jones Industrial Average (DJIA) are just 10 points below fair value. 

 

5 Things You Need to Know Today

 

  1. Rate-hike fears and lackluster data had stocks in China moving lower once again
  2. The Chicago Board Options Exchange (CBOE) saw 561,230 call contracts traded on Friday, compared to 453,314 put contracts. The resultant single-session equity put/call ratio rose to 0.81, while the 21-day moving average remained at 0.76.
  3. Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA) is set to take a 2.8% hit at the open, following price-target cuts to $85 at both Deutsche Bank and Raymond James. More notably, though, the company was featured on the most recent cover of Barron's, with the magazine suggesting the shares could fall another 50%
  4. Things are getting ugly for Marvell Technology Group Ltd. (NASDAQ:MRVL). After sliding over 16% on Friday on news of an internal accounting investigation, the shares are again stumbling in electronic trading as the Street continues to weigh in. No fewer than four brokerage firms have lowered their price targets on the semiconductor firm, with both B. Riley and Morgan Stanley cutting their outlooks to a "hold" equivalent. 
  5. Maybe somewhat surprisingly, gold futures are pointed higher this morning, even as traders pan the upcoming Fed decision. Things got ugly toward the end of last week for names connected to the precious metal, with several equities falling to multi-year lows

 

150914OV_Buzz

 

 

Earnings and Economic Data

 

There are no major economic reports on tap today. United Natural Foods (UNFI) will reveal its quarterly results. To see what else is coming up on this week's docket, click here.


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