Dow Jones Industrial Average Futures Falter on Pre-Fed Anxiety

The Enigma of High-Beta Stocks

by Josh Selway

Published on Oct 26, 2015 at 8:52 AM
Updated on Oct 26, 2015 at 8:53 AM

The Dow Jones Industrial Average (DJIA) looks set to open lower ahead of what will be a busy week on Wall Street. Many traders are surely looking ahead to the Federal Open Market Committee's (FOMC) two-day meeting and subsequent monetary policy decision on Wednesday. There are also plenty of other noteworthy events on this week's slate, including earnings from the likes of Apple Inc (NASDAQ:AAPL) and Alibaba Holding Group Ltd (NYSE:BABA), as well as an advance reading on third-quarter gross domestic product (GDP) due out on Thursday.  

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

And now, on to the numbers…

151026Futures22

Futures on the Dow Jones Industrial Average (DJIA) are sitting 29.7 points below fair value. 


 5 Things You Need to Know Today

 

  1. Friday's late-breaking interest rate cut from the People's Bank of China (PBOC) got a mixed reception in Asia today.
  2. The Chicago Board Options Exchange (CBOE) saw 1.04 million call contracts traded on Friday, compared to 650,879 put contracts. The resultant single-session equity put/call ratio slid to 0.63, while the 21-day moving average edged down to 0.73. 
  3. A week later, and not much has changed for Valeant Pharmaceuticals Intl Inc (NYSE:VRX). Last week, the stock plummeted following a disturbing report from short-seller Citron Research. Now, the shares are down another 8% in electronic trading, after VRX called Citron's allegations of revenue inflation "completely untrue," and called for an SEC investigation into last week's report. 
  4. M&A buzz is fueling a 17.4% pre-market rise in Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP). The Chinese Internet travel firm announced it will merge with sector peer Qunar Cayman Islands Ltd (NASDAQ:QUNR). As a result, CTRP shorts are going to be feeling the heat today
  5. In other M&A news, energy giant Duke Energy Corp (NYSE:DUK) is fractionally higher ahead of the bell, as Wall Street weighs in on the firm's freshly announced acquisition of Piedmont Natural Gas Company, Inc. (NYSE:PNY). Duke Energy Corp said it would buy the sector peer for nearly $5 billion in cash, marking yet another major merger between energy names


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Earnings and Economic Data

 

Today's lineup features new home sales and the Dallas Fed's manufacturing survey. 2U (TWOU), Broadcom (BRCM), Cheesecake Factory (CAKE), Hartford Financial (HIG), PMC-Sierra (PMCS), Sohu.com (SOHU), and Xerox (XRX) will all reveal their quarterly results. To see what else is on this week's docket, click here


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