Dow Futures Cool Off as Inflation Data Weighs

The producer price index for October was in line with Wall Street's estimates

Digital Content Manager
Nov 9, 2021 at 9:16 AM
facebook twitter linkedin


Dow Jones Industrial Average (DJI) futures have dipped below breakeven this morning, poised to take a breather after notching a record close yesterday. Futures on the S&P 500 (SPX) are subdued, while Nasdaq-100 (NDX) futures are eyeing modest gains. Investors are unpacking the producer price index (PPI) for October, which met analysts' expectations of a 0.6% jump month-over-month, and hints at inflation still pressuring the U.S. economy. Longer-term, wholesale prices climbed 8.6% year-over-year -- their highest pace in over a decade.

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

  • Schaeffer's Senior V.P. of Research Todd Salamone unpacks the options buying surge that tipped off volatility spikes.
  • Tesla stock plummeted after CEO Elon Musk's tweets.
  • Plus, General Electric's spinoffs; Cinemark upgraded; and Palantir Technologies moving lower.

Futures 1109

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 2.5 million call contracts traded on Monday, compared to 927,588 put contracts. The single-session equity put/call ratio fell to 0.36, and the 21-day moving average stayed at 0.47.
  2. General Electric Company (NYSE:GE) is surging ahead of the open, last seen up 8.4% after the former blue-chip conglomerate announced it will split into three public traded companies. Each entity will focus on a different segment, including aviation, energy and health care, the latter of which will be spun off in early 2023. Year-over-year, GE sports a 67.5% lead.
  3. The shares of Cinemark Holdings, Inc. (NYSE:CNK) are up 2.4% in electronic trading, after Credit Suisse upgraded the movie theater name to "outperform" from "neutral."  The analyst in question said the company is well-positioned as box offices continue to recover into 2022. Over the last 12 months, CNK has added 140.3%.
  4. Palantir Technologies Inc (NYSE:PLTR) is down 2.9% before the bell, despite the software company reporting fiscal third-quarter revenue of $392 million -- substantially higher than the 385 million analysts anticipated. Meanwhile, the company's earnings were in line with expectations. Year-over-year, PLTR remains up 93.4%.
  5. Today also brings the National Federation of Independent Business (NFIB) small-business index.

OV Buzz Chart Nov 9

SoftBank Lifting Japan's Nikkei

Stocks in Asia were mixed today, after markets in the U.S. closed at record highs and Bitcoin (BTC) hit a new all-time high. Japan’s Nikkei fell 0.8%, despite shares of SoftBank Group surging 10.5% following a share repurchase plan. Elsewhere, Hong Kong’s Hang Seng and  China’s Shanghai Composite both tacked on 0.2%, and South Korea’s Kospi rose 0.08%. 

European markets are muted at midday, amid a slew of corporate earnings. At last check, the DAX in Germany is up 0.2%, France’s CAC 40 has added 0.3%, and London’s FTSE 100 is 0.02% lower. 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners