Opening View: DJIA Futures Soar 400 Points; SPX Up 52 Points

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The Dow Jones Industrial Average ( DJIA ) could be on its way to its biggest single-session gain of the year, as investors cheer the approval of plans in Europe to bail out Greece and prop up the euro. In fact, futures on the DJIA and the S&P 500 Index ( SPX ) are trading a whopping 391 points and 51 points above fair value, respectively. Amazingly, this surge comes less than a week after the Dow plummeted nearly 1,000 points to its lowest levels of 2010. Such a move could put the DJIA back above its 10-week and 20-week moving averages, while the SPX would come close to recapturing the 1,200 level. What's more, a rally of this magnitude could also pull the CBOE Market Volatility Index ( VIX ) sharply lower. The VIX spiked more than 85% last week, closing above the 40 level for the first time since April 2009.

In equity news, Dynegy Inc. ( DYN ) reported a first-quarter net profit of $145 million, or 24 cents per share, as revenue declined 5.1% to $858 million. Analysts had been expecting a loss of 12 cents per share. "While our first-quarter results continued to be impacted by lower demand, we view the emerging economic recovery as a precursor to demand growth and potentially more favorable power pricing in the future," said CEO Bruce Williamson. DYN shares are up roughly 12.6% in pre-market trading.

NRG Energy ( NRG ) posted a first-quarter profit $58 million, or 22 cents per share, while revenue rose to $2.22 billion from $1.66 billion. Analysts expected earnings of 31 cents per share. Excluding mark-to-market gains, NGR's adjusted EBITDA rose to $601 million from $477 million. Separately, the Tokyo Electric Power Company said it would invest $155 million in Nuclear Innovation North America's STP 3&4 nuclear project.


Earnings Preview

On the earnings front, Dean Foods Co. ( DF ), DISH Network Corp. ( DISH ), Energy Conversion Devices Inc. ( ENER ), ReneSola Limited ( SOL ), Tyson Foods Inc. ( TSN ), LDK Solar Co., Ltd. ( LDK ), MBIA Inc. ( MBI ), priceline.com Inc. ( PCLN ), and Winn-Dixie Stores Inc. ( WINN ) are slated to release their quarterly earnings reports. Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

Market Statistics

Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 2,220,791 call contracts traded on Friday, compared to 1,772,509 put contracts. The resultant single-session put/call ratio arrived at 0.80, while the 21-day moving average rose to 0.53.

Volatility indices

NYSE and Nasdaq summary

**The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher.**

Dow, S&P and Nasdaq futures

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Overseas Trading

Overseas trading is on fire this morning, as all 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at an impressive gain of 4.64%. In Asia, stocks climbed following news that global policymakers unleashed a massive $1 trillion rescue package to contain the Greek debt crisis. Meanwhile, European shares spiked after their worst weekly drop in nearly 18 months. Overseas market information comes to you courtesy of Schaeffer's Daily Bulletin .

Overseas markets

Currencies and Commodities

Crude futures are following stocks higher this morning, as the European bailout plan is perceived as helping to prop up demand. At last check, the front-month crude contract was up $2.68 at $77.79. However, the U.S. dollar and gold futures are headed sharply lower on the news. The dollar has fallen sharply against the euro, sending the U.S. Dollar Index 1.47% lower to 83.21 in pre-market trading. Finally, gold futures have plunged $18 to $1,192.40 an ounce in London.

Currencies and commodities

Unusual Put and Call Activity:

For an explanation of how to use this information, check out our Education Center topics on Option Volume and Open Interest Configurations .

Unusual options activity - puts

Unusual options activity - calls

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This article appears in: Investing , Options


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As of 12/19/2014, 04:15 PM


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