Dow Jones Industrial Average Futures Plunge; Yellen Heads for Round 2

2 Bearish Signals Not Seen Since 2009

by Karee Venema

Published on Feb 11, 2016 at 9:09 AM
Updated on Jun 24, 2020 at 10:16 AM

Futures on the Dow Jones Industrial Average (DJIA) are off sharply this morning, as traders around the globe hit the exits en masse. On Wednesday, Fed Chair Janet Yellen signaled concern over economic growth, which many think could have the central bank tapping the brakes on interest-rate hikes this year -- making today's testimony in front of the Senate Banking Committee all the more intriguing.

Meanwhile, another steep drop in oil prices -- March-dated crude futures have plunged 3.5% to $26.50 per barrel -- and sinking Treasury yields are only fueling the fear on Wall Street. Gold, however, is benefiting from its safe-haven status, with the April contract soaring 3.4% to $1,237.60 an ounce.

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

160211ovfutures

Futures on the Dow Jones Industrial Average (DJIA) are 234 points below fair value.

5 Things You Need to Know Today

 

  1. London's FTSE 100 is nearing a dismal  milestone, after Janet Yellen's first day of congressional testimony failed to instill confidence in global markets.
  2. The Chicago Board Options Exchange (CBOE) saw 667,836 call contracts traded on Wednesday, compared to 519,966 put contracts. The resultant single-session equity put/call ratio edged up to 0.78, while the 21-day moving average dropped to 0.76.  
  3. Twitter Inc (NYSE:TWTR) is headed for another record low -- down 6.5% in electronic trading -- after the company said it failed to add new users in the fourth quarter. The stock received a bevy of bearish brokerage notes, including one from Pacific Crest, which recommended avoiding the "current drama in the Internet."
  4. Cisco Systems, Inc. (NASDAQ:CSCO) said increasing demand for its routers and security products helped boost its fourth-quarter profit above the consensus estimate. The firm also increased its buyback plan. As such, analysts are scrambling to upwardly revise their ratings -- and the shares are pointed 6% higher ahead of the bell, poised for their best day in a year.
  5. Expedia Inc (NASDAQ:EXPE) is ready to extend its lead over a key moving average -- up 10% in pre-market trading -- after the company offered an encouraging full-year profit forecast. Specifically, a recent round of acquisitions should help boost adjusted earnings 35%-45% in 2016.

160211OV_Buzz

Earnings and Economic Data

The weekly jobless claims report was released this morning. Plus, Yellen will conclude her two-day testimony in front of Congress.

Among the companies reporting earnings are Activision Blizzard (ATVI), Advance Auto Parts (AAP), Avon Products (AVP), CBS Corporation (CBS), Cyberark Software (CYBR), FireEye (FEYE), Groupon (GRPN), Kellogg (K), Molson Coors Brewing (TAP), Monster Worldwide (MWW), Nokia (NOK), Pandora Media (P), PepsiCo (PEP), TripAdvisor (TRIP), and Zillow (Z). To see what's on tomorrow's agenda, click here.


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