Dow Jones Industrial Average Takes Aim at Fresh Highs

It was a record-setting day on Wall Street Monday, and the Dow Jones Industrial Average (DJIA) looks set to extend this momentum in today's session. Helping to buoy investor sentiment are dovish comments from overseas, where a member of the European Central Bank (ECB) said the central bank may modestly increase its rate of asset purchases in the near term. Back on the homefront, housing data will continue to be in focus, with housing starts the sole data point on the economic calendar.

 

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

 

• "Are we on the verge of a breakout?" Schaeffer's Senior VP of Research Todd Salamone makes the case.
• Why option traders should keep a close eye on these 5 stocks today.
• A number of notable names rallied big on M&A buzz, including Ann Inc (NYSE:ANN) and Netflix, Inc. (NASDAQ:NFLX) -- while Endo International plc's (NASDAQ:ENDP) news wasn't as well-received.

And now, on to the numbers…

Futures on the Dow Jones Industrial Average (DJIA) are more than 54 points above fair value.

Market Statistics

 The Chicago Board Options Exchange (CBOE) saw 922,192 call contracts traded on Monday, compared to 608,786 put contracts. The resultant single-session equity put/call ratio rose to 0.66, while the 21-day moving average stayed at 0.63.

  Currencies and Commodities
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• The U.S. dollar index is up 0.8% at 94.98.
• Crude oil is down 1% at $59.64 per barrel.
• Gold is off 0.6% at $1,219.70 per ounce.

 

Earnings and Economic Data

 

Housing starts are the lone economic report on today's docket. Revealing earnings will be Home Depot (HD), Wal-Mart Stores (WMT), Analog Devices (ADI), Cheetah Mobile (CMCM), Dick's Sporting Goods (DKS), Etsy (ETSY), NQ Mobile (NQ), Qihoo 360 Technology (QIHU), and TJX Companies (TJX). To see what else is on this week's agenda, click here.

 

Overseas Trading

 

Asian markets ended higher, buoyed by record-setting finishes for U.S. indexes. In China, the Shanghai Composite surged 3.1%, after the government announced a round of supportive measures for capital markets. Elsewhere, Japan's Nikkei tacked on 0.7% to close above the 20,000 mark, Hong Kong's Hang Seng added 0.4%, and South Korea's Kospi rose 0.3%.

 

European benchmarks are in also the green. Traders are digesting dovish comments from the ECB's Benoit Coeure -- who said the ECB will pick up the pace of asset purchases this month and next -- amid reports showing a drop in U.K. consumer prices and a retreat in German investor sentiment. At last check, the German DAX is up 1.9%, the French CAC 40 is 1.7% higher, and London's FTSE 100 is enjoying a 0.4% lead.

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Unusual Put and Call Activity
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