Dow Jones Industrial Average Set to Bounce; S&P Looks to Snap Losing Streak

Why We're Watching This SPY Pattern

by Alex Eppstein

Published on Sep 29, 2015 at 8:57 AM

The Dow Jones Industrial Average (DJIA) is set to bounce back from Monday's horrendous session, helped by resilience among European stocks and a modest early rise in oil prices. Meanwhile, as central bankers continue to eye a rate hike by the end of 2015, today's key domestic data releases are the latest S&P/Case Shiller home price index and consumer confidence numbers. Elsewhere, the broader S&P 500 Index (SPX) will attempt to snap a five-day losing streak, despite Goldman Sachs cutting its year-end forecast for the benchmark to 2,000 from 2,100.

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

 

  • Schaeffer's Senior VP of Research Todd Salamone identifies one crucial SPDR S&P 500 ETF Trust (SPY) pattern that could help determine whether we're in a bear market -- or forming a bottom.
  • Why these 4 stocks are set for a standout session -- for better or worse.
  • Find out how M&A Monday impacted these 3 names.
  • Plus … 5 things you need to know this morning -- including stocks making waves and what's happening overseas.

And now, on to the numbers…

150929ov

Futures on the Dow Jones Industrial Average (DJIA) are roughly 85 points above fair value.

5 Things You Need to Know Today

 

  1. Asian markets got burned by a bearish lead from Wall Street, with commodity stocks faring especially badly.
  2. The Chicago Board Options Exchange (CBOE) saw 589,762 call contracts traded on Monday, compared to 552,872 put contracts. The resultant single-session equity put/call ratio jumped to 0.94, while the 21-day moving average remained at 0.76. 
  3. Despite a recent IRS setback, Yahoo! Inc. (NASDAQ:YHOO) said late Monday it will move forward with its planned spin-off of its stake in Alibaba Group Holdings Ltd (NASDAQ:BABA). YHOO has gained more than 4% pre-market, shrugging off a Mizuho price-target cut to $40 from $43.
  4. For the second time in as many weeks, Eli Lilly and Co (NYSE:LLY) announced successful drug trial results -- with rheumatoid arthritis drug baricitinib proving more effective than a rival treatment in a late-stage study. LLY has tacked on 1.2% ahead of the bell.
  5. Following a busy day on the corporate transactions front, Reynolds American, Inc. (NYSE:RAI) today announced an agreement to sell its Natural American Spirit brand to Japan Tobacco Group for roughly $5 billion. However, RAI has ticked fractionally lower in electronic trading.

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Earnings and Economic Data

 

Today, we will be treated to the S&P/Case-Shiller home price index and the Conference Board's latest consumer confidence reading. Barracuda Networks (CUDA), Costco (COST), Diamond Foods (DMND), and Ferrellgas Partners (FGP) are the day's earnings reports of note -- though Tesla Motors (TSLA) will likely grab headlines as it begins delivery on its luxury electric crossover, the Model X. To see what else is coming up on this week's docket, click here.


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