Dow Jones Industrial Average Futures Fall; Crude Oil Keeps Climbing

Why Traders Should Brace for Big Stock Moves

by Karee Venema

Published on Mar 8, 2016 at 9:05 AM
Updated on Mar 8, 2016 at 9:11 AM

The Dow Jones Industrial Average (DJIA) is at risk of snapping its recent winning streak today, with Dow futures trading below fair value. Disappointing data out of China is weighing on stocks, and is overshadowing an extended rise for oil prices. Specifically, April-dated crude futures are up 0.9% at $38.24 per barrel, despite Goldman Sachs warning in an early research note this morning that a "sustainable rally" in crude oil is "still months away."

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

  • Why traders should brace for big stock moves ahead, according to Schaeffer's Senior VP of Research Todd Salamone.
  • It's a fire sale on Whole Foods Market, Inc. (NASDAQ:WFM) options.
  • What sent option traders scrambling to this red-hot energy stock?
  • Plus... the Chinese data smacking mining stocks, Sunedison gets snubbed, and Shake Shack braces for a steep plunge.

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Futures on the Dow Jones Industrial Average (DJIA) are nearly 62 points below fair value.

5 Things You Need to Know Today

 

  1. European stocks are lower at midday following bleak news out of China, despite an encouraging read on Germany's industrial output.
  2. The Chicago Board Options Exchange (CBOE) saw 766,497 million call contracts traded on Monday, compared to 513,072 put contracts. The resultant single-session equity put/call ratio jumped to 0.67, while the 21-day moving average fell to 0.72.  
  3. Shares of Sunedison Inc (NYSE:SUNE) are up nearly 27% in electronic trading, following news Vivint Solar Inc (NYSE:VSLR) has ended its $2.2 billion cash-and-stock merger deal with the solar energy company. SUNE had made legal headway in its merger plans of late, but VSLR said the firm failed to provide current financial statements -- a "willful breach" of the contract.
  4. Shake Shack Inc (NYSE:SHAK) is bracing for a 9.2% drop out of the gate -- so far, a smaller move than the options market was anticipating -- after the burger chain said same-store sales grew at their slowest pace in almost a year last quarter and forecast lower-than-expected full-year revenue. SHAK was also hit with a price-target cut to $40 from $48 at Barclays.
  5. Urban Outfitters, Inc. (NASDAQ:URBN) is just the latest specialty retailer to turn in a strong quarterly earnings report -- sending the shares up 8% ahead of the bell. The Anthropologie owner's fourth-quarter profit arrived above estimates, while the stock received a bevy of bullish brokerage attention overnight.


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Earnings and Economic Data

There are no notable economic reports due out on today. Sunedison Semiconductor (SEMI) is slated to report earnings. To see what else is on this week's agenda, click here.


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