Dow Jones Industrial Average Futures Plunge 365 on China Halt, Crude Collapse

Dow Spirals 365 as Crude, China Collapse

by Alex Eppstein

Published on Jan 7, 2016 at 9:07 AM

Investor fears are running high after another trading halt in China, sending Dow Jones Industrial Average (DJIA)​ futures sharply lower. In fact, the Dow is on track for its third triple-digit drop of the week. Traders are also reacting to an ongoing slide in crude oil, with February-dated futures off 3.6% at $32.75 per barrel -- and fresh off a 12-year low.

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


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Futures on the Dow Jones Industrial Average (DJIA) are 365.5 points below fair value.

5 Things You Need to Know Today

 

  1. Following a 7% plunge, China halted stock markets for the second time this week, sparking a global sell-off.
  2. The Chicago Board Options Exchange (CBOE) saw 795,913 call contracts traded on Wednesday, compared to 556,943 put contracts. The resultant single-session equity put/call ratio rose to 0.70, while the 21-day moving average held steady at 0.71. 
  3. Struggling retailer Macy's, Inc. (NYSE:M) cut its 2015 earnings forecast for the second time, after same-store sales fell 4.7% over the crucial November-December holiday period. The company also announced plans to shutter 36 stores and lay off about 2,000 workers. Ahead of the bell, M has been hit with price-target cuts at Nomura, Sterne Agee CRT, UBS, and Citigroup, but the stock has added 1.4% as traders cheer the cost-cutting moves.
  4. Meanwhile, fellow department store chain J C Penney Company Inc (NYSE:JCP) reported a 3.9% rise in same-store sales for the final two months of 2015, and reaffirmed its full-year adjusted earnings target. JCP is up more than 2% in electronic trading, with the stock set to catch a break from its recent technical woes.
  5. Yahoo! Inc. (NASDAQ:YHOO) is poised to drop 3.6% out of the gate, after a Business Insider report surfaced claiming the media firm is preparing to cut its workforce by 10% or more. Earlier this week, Starboard Value sent a letter to YHOO's board demanding changes to improve the company's performance.


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Earnings and Economic Data

In addition to today's report on weekly jobless claims, Chicago Fed President Charles Evans will give a speech on the economy at 2:15 p.m. ET. Barracuda Networks (CUDA), Bed Bath & Beyond (BBBY), Constellation Brands (STZ), Ruby Tuesday (RT), Schnitzer Steel (SCHN), The Container Store (TCS), and Walgreens Boots Alliance (WBA) will report earnings. To see what else is coming up on this week's agenda, click here​.


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