Rising Crude Lifts Dow Jones Industrial Average Futures

What Every Trader Needs to Know About Implied Volatility

Jun 26, 2017 at 9:08 AM
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Dow Jones Industrial Average (DJIA) futures are trading above fair value, as oil prices signal a third straight day of gains. At last check, August-dated crude futures were up 0.7% at $43.33 per barrel. Stocks are largely shrugging off a wider-than-expected decline in durable goods orders and hawkish talk from San Francisco Fed President John C. Williams, with the central bank official overnight throwing his support behind additional rate hikes. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also higher ahead of what could be a positive day for the U.S. stock market.


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


  • What every options trader needs to know about implied volatility.
  • How we use this proprietary indicator to find prime trading opportunities.
  • Options traders blasted this bouncing takeover target.
  • Plus, Facebook eyes a record open; Micron gets a pre-earnings analyst boost; and a C-suite shocker at Pandora.

us stock index futures june 26

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 943,495 call contracts traded on Friday, compared to 543,762 put contracts. The single-session equity put/call ratio rose to 0.58, and the 21-day moving average remained at 0.63.
  2. According to The Wall Street Journal, Facebook Inc (NASDAQ:FB) is interested in producing original scripted TV shows for as much as $3 million per episode, with the social media name in talks with several Hollywood studios and talent agencies. FB stock is up 0.6% in pre-market trading, on track to open the session at an all-time peak.
  3. Cowen and Company raised its price target on Micron Technology, Inc. (NASDAQ:MU) to $38 from $34 -- territory not charted since March 2002 -- ahead of the chipmaker's earnings report, due after Thursday's close. MU stock is trading 2% higher ahead of the open.
  4. Pandora Media Inc (NYSE:P) co-founder Tim Westergren will step down as CEO, but is expected to stay on until a replacement has been found, per a report in Re/Code. Pandora declined to comment on the report. P stock, which was also upgraded to "sector weight" at KeyBanc, is 2.5% higher in electronic trading.
  5. The Dallas Fed manufacturing survey will be released at 10:30 a.m. ET. Schnitzer Steel (SCHN) will report earnings.

Buzz Stocks June 26

Overseas Trading

Asian stocks closed broadly higher, led by an ongoing rise in large-cap Chinese shares. Specifically, many blue-chip stocks in the region flirted with fresh highs, following comments by an MSCI executive suggesting the index provider could give greater weight to Chinese stocks in the coming years. At the close, the Shanghai Composite was up 0.9%, and Hong Kong's Hang Seng had added 0.8%. In South Korea, the Kospi rose 0.4% for a record close, and the Nikkei added 0.1% in Japan, despite lingering concerns surrounding airbag maker Takata, which filed for bankruptcy. 

Major European indexes are also higher at the halfway point. Stabilizing oil prices are lifting the confidence of stock pickers, as is an upbeat business sentiment survey out of Germany. London's FTSE 100 is on pace to snap a four-day losing streak, last seen up 0.6%, with Nestle in focus thanks to news hedge fund manager Daniel Loeb has taken a 1% stake in the company. Elsewhere, Germany's DAX has gained 0.8%, while France's CAC 40 has rallied 1%. 


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