MMR

Dow Jones Industrial Average Futures Point to a Bounce

Why 'Cheap' Stocks Aren't Much of a Bargain

Sep 23, 2015 at 8:59 AM
facebook X logo linkedin


As expected, it's been a volatile week on the Street. Today, the momentum appears to be shifting to the upside, with futures on the Dow Jones Industrial Average (DJIA) modestly higher ahead of the bell. Speculators are digesting a slew of manufacturing reports from around the globe -- with China's dismal reading taking top billing. Traders will also have the chance to gauge the temperature of the domestic economy, with Markit's flash purchasing managers manufacturing index (PMI) for the U.S. due at 9:45 a.m. ET.

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

 

  • Schaeffer's Senior Quantitative Analyst Rocky White explains why low-priced stocks aren't always a bargain -- plus, 7 stocks over $300 that have put their low-priced rivals to shame.
  • The automakers getting burned amid Volkswagen's emission scandal.
  • In case you missed it, why these 4 names are a must for your Wednesday watch list.
  • Plus … 5 things you need to know this morning -- including stocks making waves and what's happening overseas.

And now, on to the numbers…

150923ovfutures

Futures on the Dow Jones Industrial Average (DJIA) are more than 50 points above fair value.

5 Things You Need to Know Today

 

  1. Asian markets took a big hit today, after the preliminary Caixin China PMI fell to its lowest level in more than six years. 
  2. The Chicago Board Options Exchange (CBOE) saw 596,135 call contracts traded on Tuesday, compared to 474,526 put contracts. The resultant single-session equity put/call ratio jumped to 0.80, while the 21-day moving average edged down to 0.76. 
  3. Following brazen comments by President Barack Obama last week, Chinese President Xi Jinping said the country is ready to establish a "high-level, joint-dialogue mechanism" over the issue of cybersecurity. Jinping was speaking in Seattle -- where he signed a 300-aircraft deal with Boeing Co (NYSE:BA) -- before he heads to Washington D.C. later this week.
  4. Ahead of the always-important holiday season, J C Penney Company Inc (NYSE:JCP) said last night it has replaced its chief merchant. The stock has been on a roll lately, and looks ready to extend this momentum today -- up 1.8% in electronic trading.
  5. Heron Therapeutics Inc (NASDAQ:HRTX) is up 24% ahead of the bell, after the company reported positive mid-stage trial results for its experimental pain drug, HTX-011. The news was met with no fewer than four price-target hikes -- but the bullish attention is just more of the same for this outperforming biotech.

150923OV_Buzz


Earnings and Economic Data

 

The weekly crude inventories update and the flash PMI for September are on today's docket. Atlanta Fed President Dennis Lockhart will continue to make the rounds, speaking around midday in Columbus, Georgia. There are no earnings of note. To see what else is coming up on this week's docket, click here.

 

Follow us on X, Follow us on Twitter

 

Nvidia and its powerful chips are the face of artificial intelligence.

But while everyone’s patting Nvidia on the back for record earnings…

It’s quietly moved on to the next phase of AI it plans to conquer…

Nvidia recently unveiled essential blueprints for this crucial $1 trillion pivot.

Click here now and find out about the three companies Nvidia absolutely needs to succeed in this vital new AI frontier.
 (ad)