Dow Jones Industrial Average Futures Point to Strong Start for August

Dow Jones Industrial Average (DJIA) futures are above fair value, indicating a positive start to the historically bearish month of August, after the blue-chip index finished every day last week in the red. Traders are digesting data showing a manufacturing slowdown in China, while awaiting manufacturing data in the U.S., due later this morning. Stocks are also shaking off a continued slide in crude oil prices, with the September contract last seen down 1% at $41.20 per barrel. Meanwhile, an extended rally today could see the S&P 500 Index (SPX) collecting another record high.

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

• The sentiment signal that just flashed for the third time ever. 
• The Japanese exchange-traded fund (ETF) attracting attention after the Bank of Japan (BoJ) decision. 
• How call players were lining up behind Ford Motor Company (NYSE:F) and Tesla Motors Inc (NASDAQ:TSLA). 
• Plus... Banks weigh on Europe, Musk companies finally make a deal, and Verizon adds another acquisition.

Futures on the Dow Jones Industrial Average (DJIA) are nearly 36 points above fair value.

5 Things You Need to Know Today
 

1. European stocks are slumping after disappointing stress test results for banks.
2. The Chicago Board Options Exchange (CBOE) saw 873,187 call contracts traded on Friday, compared to 543,734 put contracts. The resultant single-session equity put/call ratio stayed put at 0.62, while the 21-day moving average edged up to 0.63.
3. SolarCity Corp (NASDAQ:SCTY) is sitting 7% lower ahead of the bell, on news that a much-anticipated merger of Musk businesses may indeed come to pass. TSLA announced it will purchase the solar power company in an all-stock deal valued at $2.6 billion, or $25.37 per SCTY share -- a discount to Friday's close of $26.70.
4. Alphabet Inc's (NASDAQ:GOOGL) life sciences unit is partnering with healthcare firm GlaxoSmithKline plc (ADR) (NYSE:GSK), spending a combined $715 million to create a new company, Galvani Bioelectronics. The firm will focus on developing technologies to treat health issues with electrical impulses, or bioelectronics.
5. Just a week after announcing its purchase of Yahoo! Inc.'s (NASDAQ:YHOO) core business, telecommunications specialist Verizon Communications Inc. (NYSE:VZ) reported this morning that it will buy workforce solutions company FleetMatics Group PLC (NYSE:FLTX) for $2.4 billion in cash, or about $60 a share. Shares of VZ were last seen 0.6% lower ahead of the open, while FLTX is set to soar nearly 39%.

Earnings and Economic Data

The week kicks off with construction spending data, the Institute of Supply Management (ISM) manufacturing index, and Markit's manufacturing purchasing managers index (PMI). For earnings, AMC Entertainment (AMC), Changeyou.com (CYOU), Diamond Offshore Drilling (DO), First Data (FDC), General Growth Properties (GGP), Loews Corp (L), Sohu.com (SOHU), T2 Biosystems (TTOO), Terex (TEX), Texas Roadhouse (TXRH), and Williams Companies (WMB) are set to report. To see what's coming up on this week's schedule, click here. 

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