China Worries Leave Dow Jones Industrial Average Win Streak in Jeopardy

Was Monday's S&P Win Big News for Bulls?

Alex Eppstein
Oct 13, 2015 at 9:00 AM
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Weak trade data out of China is taking its toll on Dow Jones Industrial Average (DJIA) futures, threatening to snap the benchmark's impressive win streak. Traders are also digesting mixed quarterly results and a $10 billion share buyback program from Dow component Johnson & Johnson (NYSE:JNJ), with another pair of blue chips set to report after the close. Meanwhile, crude oil is inching higher after an overnight drubbing, with the contract shrugging off a warning from the International Energy Agency (IEA) that the global oversupply glut will persist through next year. Elsewhere, St. Louis Fed President James Bullard earlier called for "gradually edging" interest rates higher "since the [economic] goals have been met and policy would still remain very accommodative."

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 nearly 76 points below fair value.

5 Things You Need to Know Today

 

  1. steep drop in Chinese imports last month wasn't enough to stop Shanghai stocks from advancing -- but the rest of the globe didn't fare so well.
  2. The Chicago Board Options Exchange (CBOE) saw 519,574 call contracts traded on Monday, compared to 346,328 put contracts. The resultant single-session equity put/call ratio rose to 0.67, while the 21-day moving average held at 0.76. 
  3. Just a day after boosting its takeover offer, Anheuser Busch Inev SA (ADR) (NYSE:BUD) has reached an agreement in principle to buy SABMiller Plc for roughly $104 billion, in a move that would combine the two biggest beer companies in the world. The news has U.S.-traded shares of BUD pointed 2.1% higher ahead of the open.
  4. International Business Machines Corp. (NYSE:IBM) continues to make its presence felt in the cloud space. Big Blue this morning agreed to a 10-year, $700 million deal to provide Etihad Airways with a global technology framework, including a cloud data center in Abu Dhabi -- among the first of its kind in the Middle East.
  5. While Starbucks Corporation (NASDAQ:SBUX) is dabbling in beer and wine, that doesn't mean it's getting away from coffee. This morning, the company announced it is launching a delivery service pilot program in New York's Empire State Building.


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Earnings and Economic Data

 

Today's economic docket is light, with the afternoon release of the Treasury budget the sole highlight. Dow components JPMorgan Chase (JPM) and Intel (INTC) are expected to report earnings. To see what else is coming up on this week's docket, click here.


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