Dow Jones Industrial Average Futures Cool After Monday's Breakout

Why Short Interest Is a Red Flag for Bulls and Bears Alike

by Andrea Kramer

Published on Oct 6, 2015 at 8:48 AM
Updated on Oct 6, 2015 at 8:50 AM

After rallying out of correction territory yesterday, the Dow Jones Industrial Average (DJIA) is set to take a breather. Likewise, the S&P 500 Index (SPX) is pointed lower on the heels of its longest winning streak of the year. Traders are treading cautiously ahead of a post-close speech from San Francisco Fed President John Williams -- a voting Federal Open Market Committee (FOMC) member -- as well as the unofficial start to earnings season later this week.

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

 

And now, on to the numbers…

151006OV1

Futures on the Dow Jones Industrial Average (DJIA) are 32.4 points below fair value.


5 Things You Need to Know Today

 

  1. Stimulus hopes are stoking a rally in Tokyo, while German data disappointed.
  2. The Chicago Board Options Exchange (CBOE) saw 813,612 call contracts traded on Monday, compared to 501,108 put contracts. The resultant single-session equity put/call ratio dropped to 0.62, while the 21-day moving average remained at 0.77. 
  3. Lions Gate Entertainment Corp. (USA) (NYSE:LGF) and Starz (NASDAQ:STRZA) are in advanced merger talks, the Los Angeles Times reported. STRZA has been a long-time center of Hollywood M&A chatter, with AMC Networks Inc (NASDAQ:AMCX) once a reported suitor.
  4. Late Monday, DuPont (NYSE:DD) said CEO Ellen Kullman will step down from her post this month, to be temporarily succeeded by current board member Edward Breen. Kullman's departure is expected to open the door for another proxy battle with activist investor Nelson Peltz, who grabbed headlines yesterday when his Trian Fund Management LP announced a $2.5 billion stake in General Electric (NYSE:GE). DD is up 6.5% ahead of the bell.
  5. AmerisourceBergen Corp. (NYSE:ABC) said it will buy PharMEDium Healthcare Holdings Inc. from privately held Clayton, Dubilier & Rice for nearly $2.6 billion in cash. ABC -- which has typically fared well on Tuesdays -- is off 1.4% in pre-market trading.

151006ovbuzz



Earnings and Economic Data

 

News remains light today, as we will be treated to the international trade balance and a speech from San Francisco Fed President John Williams. Beverage giant PEP reported earnings, and Yum! Brands (YUM) will announce results after the close. To see what else is coming up on this week's docket, click here.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.
CE Stock Heading into Bullish Month
Celanese stock is coming off a free fall from its all-time-high in late 2019
HD Stock Sinks on Bear Notes, In-Store Changes
Home Depot stock received price target cuts after sharing in-store changes
Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.