Oil, Fed Fears Pressure Dow Jones Industrial Average Futures

The Risk Worth Hedging

Sep 13, 2016 at 9:14 AM
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Dow Jones Industrial Average (DJIA) futures are signaling a significantly lower start, as slipping oil prices and lingering Fed jitters weigh on stocks. October-dated crude futures are down 2.7% at $45.06 per barrel, after the International Energy Agency (IEA) slashed its oil demand forecast for this year and next, and warned of oversupply well into 2017. Yesterday's dovish comments from Fed Governor Lael Brainard served to bolster stocks yesterday, but the Dow is poised to give up a healthy portion of those gains today, with the central bank going into "blackout" mode ahead of next week's key policy meeting.

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

160913OV1

Futures on the Dow Jones Industrial Average (DJIA) are about 116 points below fair value.

5 Things You Need to Know Today
 

  1. European markets are higher, though concerns about crude oil prices and oversupply are weighing on energy stocks.
  2. The Chicago Board Options Exchange (CBOE) saw 748,046 call contracts traded on Monday, compared to 480,659 put contracts. The resultant single-session equity put/call ratio fell to 0.64, while the 21-day moving average rose to 0.65.
  3. Netflix, Inc. (NASDAQ:NFLX) is set to open down 1.5%, following a downgrade to "underperform" from "neutral" by Macquarie. The brokerage firm said several factors could weigh on the streaming content provider in the near-term, including high content costs and increased competition from Amazon.com, Inc. (NASDAQ:AMZN) and foreign competitors.
  4. Apple Inc. (NASDAQ:AAPL) is up 1% in electronic trading, as reports trickle in about record iPhone 7 pre-orders. The upcoming AAPL products have been met with mixed reviews since the tech giant's product reveal last Wednesday. 
  5. Polaris Industries Inc (NYSE:PII) is set to drop another 0.8% out of the gate, after yesterday hitting a seven-month low on a downwardly revised full-year forecast. This news was met with a barrage of negative analyst attention, including a downgrade to "sector weight" from "overweight" at Keybanc, and no fewer than four price-target cuts, including a drop to $69 from $88 by RBC Capital.

Buzz Stocks Sept 13

Earnings and Economic Data

The Treasury budget is due out today. The earnings calendar is relatively empty. To see what else is coming up on this week's schedule, click here

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