Dow Jones Industrial Average Eyes Strong Finish to Tough Quarter

Can the S&P Bounce Back in 4Q?

Sep 30, 2015 at 8:55 AM
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Dow Jones Industrial Average (DJIA) futures are soaring triple digits ahead of the open, following in the bullish footsteps of overseas markets, as the blue-chip bellwether attempts to close out a rough quarter on a strong note. Stoking traders' risk-on attitude is a stronger-than-expected gain of 200,000 jobs in ADP's private-sector employment report, which could be a good omen for Friday's crucial payrolls report. Meanwhile, the Fed will be in focus once again, with investors listening for rate-hike clues as a trio of central bank officials -- including Chair Janet Yellen -- take the podium.

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

 

And now, on to the numbers…

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Futures on the Dow Jones Industrial Average (DJIA) are roughly 195 points above fair value.

5 Things You Need to Know Today

 

  1. Despite ending the day in the green, Chinese markets still closed with their worst quarter since 2008.
  2. The Chicago Board Options Exchange (CBOE) saw 574,740 call contracts traded on Tuesday, compared to 543,951 put contracts. The resultant single-session equity put/call ratio edged up to 0.95, while the 21-day moving average rose to 0.77. 
  3. Ralph Lauren Corp (NYSE:RL) founder and CEO Ralph Lauren is stepping down, with Old Navy President Stefan Larsson set to take the helm. News of Larsson's departure is sending the already battered shares of Gap Inc (NYSE:GPS) -- which owns Old Navy -- down 7.3% pre-market, following a raft of negative analyst attention. Conversely, RL is up more than 6%, benefiting from an upgrade to "buy" from "neutral" at UBS (which also cut its price target to $128 from $133).
  4. Chesapeake Energy Corporation (NYSE:CHK) is up 1.6% ahead of the bell, after the company announced it has cut its workforce by 15% in response to sagging gas and oil prices.
  5. Ford Motor Company (NYSE:F) is bracing for a work stoppage at its Kansas City-based F-150 plant, after United Auto Workers (UAW) Vice President Jimmy Settles issued a five-day strike notice. Regardless, F is up 2.5% in pre-market trading, joining in a broader global rally for auto stocks. Separately, the UAW's national agreement with Fiat Chrysler Automobiles NV (NYSE:FCAU) will be voted on later this week.

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Earnings and Economic Data

 

Today, the Chicago purchasing managers index (PMI) and weekly petroleum inventory report are due out. In addition, investors will be waiting for 2 p.m. ET, when Fed Chair Janet Yellen will make the opening remarks to the St. Louis Fed community banking conference. Later in the evening, Fed Governor Lael Brainard will speak at the same conference.

In keeping with the week's payrolls theme, Paychex (PAYX) will step into the earnings confessional, while Actuant (ATU) is also due to report. Traders should note that today also marks the deadline for Congress to approve the federal budget and avoid another government shutdown, which could impact markets. To see what else is coming up on this week's docket, click here.


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