Dow Jones Industrial Average Futures Advance Ahead of Yellen Testimony

How to Hedge With Options Ahead of the 'Brexit' Vote

Jun 21, 2016 at 9:08 AM

UAL
FCAU
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Dow Jones Industrial Average (DJIA) futures are again perched above fair value, as additional polling data is calming "Brexit" fears for a second straight day. Comments from Federal Reserve officials could move stocks today, too, with Fed Chair Janet Yellen set to begin her two-day testimony on Capitol Hill at 10 a.m. ET, and Fed Governor Jerome Powell speaking this afternoon. On the commodities front, oil prices are down -- with July-dated crude futures last seen 1.6% lower at $48.58 per barrel -- following reports that the Nigerian government has signed a 30-day ceasefire with the militants who have been disrupting crude oil production.

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

Schaeffer's Senior VP of Research Todd Salamone explains how to hedge with options ahead of the "Brexit" vote.
Why these 2 bank stocks broke out.
Option bears refuse to quit on this outperforming gold stock.
Plus... Global stocks rally, Wal-Mart shakes up its China strategy, and one airline's bold prediction.

dow futures june 21

Futures on the Dow Jones Industrial Average (DJIA) are roughly 33 points above fair value.

5 Things You Need to Know Today

Japanese markets advanced amid one high official's change of heart, while European stocks are up ahead of a speech from European Central Bank (ECB) President Mario Draghi.
The Chicago Board Options Exchange (CBOE) saw 710,358 call contracts traded on Monday, compared to 425,416 put contracts. The resultant single-session equity put/call ratio dipped to 0.60, while the 21-day moving average edged down to 0.65.
Wal-Mart Stores, Inc. (NYSE:WMT) has officially sold its China-based online grocery store to JD.com Inc (ADR) (NASDAQ:JD), in exchange for a 5% stake in JD -- worth roughly $1.5 billion.
Fiat Chrysler Automobiles NV (NYSE:FCAU) will look into the car accident that killed "Star Trek" actor Anton Yelchin. The vehicle was a 2015 Jeep Grand Cherokee, which was included in FCAU's worldwide recall, after the SUV was found to roll away while parked. Despite this latest proverbial black eye for the automaker, the stock is 2.6% higher pre-market.
United Continential Holdings Inc (NYSE:UAL) is soaring ahead of the bell, up 4.8%, after the airline said it expects its ongoing initiatives -- including "no-frills" fares -- to generate an extra $3.1 billion in annual operating income by 2018. Longer term, however, the stock is a major underperformer.

Buzz Stocks June 21

Earnings and Economic Data

As alluded to, Yellen will speak before the Senate Banking Committee today. Earnings are due from FedEx (FDX), Lennar (LEN), KB Home (KBH), and La-Z-Boy (LZB). To see what else is coming up on this week's schedule, click here.

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