Dow Jones Industrial Average Futures Gain as Traders Eye Possible Fed Delay

Is a Storm Brewing for Solar?

Oct 5, 2015 at 8:55 AM
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Dow Jones Industrial Average (DJIA) futures are pointing to a strong open this morning, as traders continue to consider Friday's underwhelming nonfarm payrolls report. Amid the weak data, speculation has picked up that the Fed could wait to raise interest rates until 2016, while minutes from the committee's most recent meeting will be released on Thursday ​-- just in time for the unofficial kickoff of third-quarter earnings season. Also helping futures on the blue-chip barometer is across-the-board strength from global markets

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

 

And now, on to the numbers…

151005Futures

Futures on the Dow Jones Industrial Average (DJIA) are 124.6 points above fair value.

5 Things You Need to Know Today

 

  1. The cloudy U.S. jobs report has equities in Asia and Europe rallying
  2. The Chicago Board Options Exchange (CBOE) saw 835,496 call contracts traded on Friday, compared to 560,257 put contracts. The resultant single-session equity put/call ratio dropped to 0.67, while the 21-day moving average slipped to 0.77. 
  3. Blue chip General Electric Company (NYSE:GE) is getting a 3.5% lift ahead of the open, on news activist investor Nelson Peltz's firm, Trian Fund Management LP, has taken a 1% stake in the company worth $2.5 billion. We'll see how this affects the stock's put-biased option traders going forward.  
  4. Tesla Motors Inc (NASDAQ:TSLA) last week introduced its long-awaited Model X, an electric SUV, but this morning it's another vehicle creating buzz. Late Friday, the company reported increased sales figures for its Model S, which contributed to record third-quarter deliveries. However, TSLA is still lagging behind its 2015 sales target. 
  5. Long-struggling American Apparel Inc (NYSEMKT:APP) has officially filed for Chapter 11 bankruptcy. In its statement, the company announced its debt will be reduced to around $135 million from $300 million under the restructuring. The stock is set to drop 24% at the open, after already sliding 89% in 2015 to close Friday at $0.11. 

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Earnings and Economic Data

 

Today's docket features the Institute for Supply Management's (ISM) non-manufacturing index, accompanied by Markit's services purchasing managers index (PMI). The lone company expected to report earnings is Container Store (TCS). To see what else is coming up on this week's docket, click here.


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