Dow Jones Industrial Average Futures Bounce as Fed Grabs the Spotlight

After kicking off a busy week with two impressive wins, Dow Jones Industrial Average (DJIA) futures are signaling another strong start. While there's still plenty of data to go around, such as this morning's ADP report on private-sector payrolls -- which topped estimates -- and our regularly scheduled crude inventories, several Fed members will be stepping into the spotlight over the next two days. Today, Fed Chair Janet Yellen will testify before the House Financial Services Committee shortly after the open, followed by speeches from Vice Chair Stanley Fischer and New York Fed President William Dudley later in the day. 

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

• Schaeffer's Senior Quantitative Analyst Rocky White examines how the Dow could react when it revisits 18,000. 
• How General Electric Company (NYSE:GE) open interest suddenly spiked to all-time highs. 
• Schaeffer's contributor Adam Warner suggests that, when it comes to hedging, simpler is better. 

And now, on to the numbers…

Futures on the Dow Jones Industrial Average (DJIA) are nearly 44 points above fair value. 

 5 Things You Need to Know Today

 

1. Tokyo stocks got a lift from some major IPO buzz, while Europe benefits from crude's rebound. 
2. The Chicago Board Options Exchange (CBOE) saw 912,338 call contracts traded on Tuesday, compared to 643,232 put contracts. The resultant single-session equity put/call ratio surged to 0.71, while the 21-day moving average stayed at 0.69. 
3. It appears the bullish betting is going to pay off for Tesla Motors Inc (NASDAQ:TSLA) option traders. The shares are ready to kick off the day 8.1% higher following the electric automaker's earnings report, with CEO Elon Musk speaking optimistically about car sales, production at its Gigafactory, and the company's continued transition into the energy sector.
4. The options market was pricing in a seemingly lofty 15% post-earnings move for Groupon Inc (NASDAQ:GRPN). Turns out, that wasn't nearly ambitious enough. The stock is pointed 31% lower in electronic trading, after GRPN missed third-quarter revenue estimates and offered a weak 2016 forecast. Plus, co-founder Eric Lefkofsky is handing over his CEO duties to Chief Operating Officer Rich Williams, and will return to his prior role as chairman of the company's board. 
5. Lumber Liquidators Holdings Inc (NYSE:LL) is also making some front-office moves, announcing John Presley as the firm's new CEO, filling a vacant position. The stock is now set to open 6.1% higher, roughly one month removed from a major settlement with the Department of Justice. 

Earnings and Economic Data

 

In addition to jobs data and crude inventories, the international trade balance and Institute for Supply Management (ISM) services index will also come out today. 

On the earnings front, we'll hear from 21st Century Fox (FOXA), 3D Systems (DDD), Allergan (AGN), Arcos Dorados (ARCO), Avon Products (AVP), Chesapeake Energy (CHK), Clean Harbors (CLH), Facebook (FB), FireEye (FEYE), GoDaddy (GDDY), King Digital Entertainment (KING), LL, Marathon Oil (MRO), Michael Kors (KORS), Qualcomm (QCOM), Regeneron Pharmaceuticals (REGN), Shopify (SHOP), SodaStream (SODA), Time Warner (TWX), Transocean (RIG), Vonage (VG), Wendy's (WEN), and Whole Foods (WFM). To see what else is coming up on this week's docket, click here.