Dow Jones Industrial Average Futures Gain on Tech M&A, Boeing Bounce

What the S&P Short Interest Spike Means for Stocks

by Josh Selway

Published on Oct 21, 2015 at 8:50 AM

Following the latest batch of earnings, futures on the Dow Jones Industrial Average (DJIA) are pointed higher. Most notably, large-caps General Motors Company (NYSE:GM) and Boeing Co (NYSE:BA) are each getting a pre-market boost following their releases, while The Coca-Cola Co (NYSE:KO) is moving to the downside. The Street is also responding to a $19 billion deal between Western Digital Corp. (NASDAQ:WDC) and SanDisk Corporation (NASDAQ:SNDK), while keeping a close eye on high-end car maker Ferrari's (NYSE:RACE) initial public offering, which has been priced at $52. On the economic front, weekly crude inventories will be released later this morning. 

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


And now, on to the numbers…

151021futures

Futures on the Dow Jones Industrial Average (DJIA) are roughly 63 points above fair value. 

5 Things You Need to Know Today

 

  1. Stocks in Europe are moving higher, despite a steep sell-off in China
  2. The Chicago Board Options Exchange (CBOE) saw 698,740 call contracts traded on Tuesday, compared to 487,702 put contracts. The resultant single-session equity put/call ratio jumped to 0.70, while the 21-day moving average stayed at 0.74. 
  3. WDC announced it will be buying flash memory company SNDK for roughly $19 billion, or $86.50 per share -- a 15% premium to the latter's Tuesday closing price. SNDK is now up 5.5% in electronic trading, while WDC is off 3.8%. Micron Technology, Inc. (NASDAQ:MU) -- which was rumored to be another possible suitor for SNDK -- is set to drop 2.1%. 
  4. Twitter Inc (NYSE:TWTR) is getting blasted in pre-market trading, dropping 5.2%, after Morgan Stanley reduced its rating to "underweight" and its price target to $24 -- a 22% discount to Tuesday's close at $30.91. This marks a total 180 from last week's price action, when TWTR gained on news of a well-known billionaire buying a stake. 
  5. It could be a rough day for burrito chain Chipotle Mexican Grill, Inc. (NYSE:CMG). The fast-casual diner failed to meet the Street's earnings expectations, while CEO John Hartung described the current month's traffic as "choppy" during the earnings call. With the stock down 7.3% ahead of the open, option traders are likely anxious to cash in their pre-earnings bets


151021OV_Buzz

Earnings and Economic Data

 

Today's earnings also include Angie's List (ANGI), ARM Holdings (ARMH), Baker Hughes (BHI), Biogen (BIIB), Citrix Systems (CTXS), eBay (EBAY), EMC (EMC), Kinder Morgan (KMI)Las Vegas Sands (LVS), and Texas Instruments (TXN). To see what else is coming up on this week's docket, click here.


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