Dow Jones Industrial Average Futures Dive on Data

Time to Be Cautious on Big-Cap Volatility?

May 4, 2016 at 9:08 AM
facebook twitter linkedin


Dow Jones Industrial Average ​​(DJIA) futures are sitting well below fair value following yesterday's triple-digit loss, with stocks being pressured by a rough day overseas and disappointing jobs data. Specifically, ADP's report on private-sector payrolls revealed employers added just 156,000 jobs in April, well short of the 195,000 expected -- a bad omen for Friday's closely watched nonfarm payrolls report. On the other hand, the U.S. trade deficit fell more than forecast to $40.4 billion -- its lowest level since February 2015 -- while labor productivity dropped less than expected.

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

Dow futures May 4

Futures on the Dow Jones Industrial Average (DJIA) are nearly 92 points below fair value.

5 Things You Need to Know Today
 

  1. Asian stocks slumped on a strengthening greenback, while earnings and commodities are weighing on European markets.
  2. The Chicago Board Options Exchange (CBOE) saw 635,725 call contracts traded on Tuesday, compared to 470,392 put contracts. The resultant single-session equity put/call ratio rose to 0.77, while the 21-day moving average edged up to 0.69.
  3. Unlike February's bull gap, Priceline Group Inc (NASDAQ:PCLN) is poised to open about 10% lower following a poorly received earnings report. While the travel site's first-quarter results topped expectations, its current-quarter earnings outlook registered south of the consensus view. 
  4. Time Warner Inc (NYSE:TWX) reported a better-than-expected first-quarter profit, boosted by strength in its HBO and Turner units -- sending the entertainment stock 1.5% higher pre-market.
  5. Fiat Chrysler Automobiles NV (NYSE:FCAU) and Alphabet Inc (NASDAQ:GOOGL) are joining forces to produce a fleet of 100 self-driving minivans -- the latest chapter in GOOGL's push for autonomous vehicles.


Buzz Stocks May 4

Earnings and Economic Data

The economic calendar is busy today. While plenty of data has already come out, factory orders, the Institute for Supply Management (ISM) non-manufacturing index, and weekly crude inventories will be released later. Minnesota Fed President Neel Kashkari will speak after the close. 

As for earnings, Allstate (ALL), Anheuser-Busch Inbev (BUD), bluebird bio (BLUE), Delphi Automotive (DLPH), GoDaddy (GDDY), Humana (HUM), InterActiveCorp (IAC), InterXion (INXN), Kate Spade (KATE), Kraft Heinz (KHC), Marathon Oil (MRO)MetLife (MET), Prudential (PRU), TASER International (TASR), Tesla Motors Inc (NASDAQ:TSLA)Transocean (RIG)TripAdvisor (TRIP)Weight Watchers (WTW), Whole Foods Market (WFM), Yamana Gold (AUY), and Zynga (ZNGA) will report. To see what else is coming up on this week's schedule, click here

Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check
 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners