Crude Crushes Dow Jones Industrial Average Futures

Why SPY's August Low Must Hold

Jan 20, 2016 at 9:04 AM
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Dow Jones Industrial Average (DJIA)​ futures are bracing for a triple-digit pullback -- and a move back below 16,000 -- as crude's collapse continues. Oil earlier fell to its lowest level since September 2003 on oversupply fears, and February futures were last seen 2.9% lower at $27.65 per barrel. Meanwhile, traders are weighing a steep sell-off overseas, earnings from a pair of Dow components, and drops in the consumer price index (CPI) and housing starts.


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


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Futures on the Dow Jones Industrial Average (DJIA) are 272 points below fair value.

5 Things You Need to Know Today

 

  1. Crude is taking a toll on global stocks, dragging one major index into bear-market territory.
  2. The Chicago Board Options Exchange (CBOE) saw 809,527 call contracts traded on Tuesday, compared to 503,120 put contracts. The resultant single-session equity put/call ratio plunged to 0.62, while the 21-day moving average held steady at 0.77. 
  3. International Business Machines Corp. (NYSE:IBM) is down more than 5% pre-market, as the tech powerhouse's earnings beat is being overshadowed by weak guidance for 2016. The expected drop, which could be exacerbated by a round of price-target cuts from no fewer than seven brokerage firms, would put IBM in five-year-low territory.
  4. Meanwhile, fellow blue chip Goldman Sachs Group Inc (NYSE:GS) is pointed 1.7% lower ahead of the bell -- and could test its annual lows -- despite the bank's better-than-expected quarterly results. Weighing on sentiment is a $5 billion mortgage-backed securities settlement, which ate into the financial firm's profit -- resulting in a third consecutive quarterly drop.
  5. Apple Inc. (NASDAQ:AAPL) has filed an application with the Indian government to open stores in the country. Prompting the expansion plan are concerns about slowing smartphone sales in AAPL's two biggest markets, the U.S. and China.


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Earnings and Economic Data

Brinker International (EAT) and F5 Networks (FFIV) will step up to the earnings plate today. Elsewhere on the corporate front, CarMax (KMX) will host its annual analyst day. To see what else is coming up on this week's agenda, click here​.

 

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