Dow Jones Industrial Average Set For 615-Point Drop as China Panic Spreads

Wall Street is bracing for another tumultuous week, with futures on the Dow Jones Industrial Average (DJIA) pointed more than 600 points lower. Setting the bearish tone this morning is a drastic drop for Asian markets, with the Shanghai Composite suffering its worst single-session loss in roughly eight years. On the economic front, there are no major reports scheduled today, though traders will get a chance to hear from Atlanta Fed President Dennis Lockhart this afternoon. 

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

• A major revamp at Tesla Motors Inc (NASDAQ:TSLA) did little to boost the stock -- or stop option bears from betting on more losses.
• The $900 million investment that had Siliconware Precision Industries (ADR) (NASDAQ:SPIL) bouncing back in a big way.
  
• While earnings had this networking name soaring, one computer concern tumbled to new lows.
• Plus … 5 things you need to know this morning -- including stocks making waves, what's happening overseas, and the latest in unusual option activity.

And now, on to the numbers…

Futures on the Dow Jones Industrial Average (DJIA) are nearly 616 points below fair value. 

5 Things You Need to Know Today

1. Stocks in China got hammered again, as traders priced in ongoing concerns about the health of the country's economy. 
2. The CBOE Volatility Index (VIX) settled last Friday at 28.03, more than doubling on a week-over-week basis. VIX options were in high demand, with 1.67 million contracts on the tape at the close -- two times the expected daily rate -- and VIX calls outpaced puts by a more than 2-to-1 margin.
3. Falling in line with the broader market, Netflix, Inc. (NASDAQ:NFLX) is poised to add to last week's drubbing. The shares are 10.2% lower ahead of the open, even after the company announced a partnership with Japan's SoftBank Group to help facilitate the launch of the streaming service in the country. 
4. NFLX is not alone in its misery, though: fellow tech stock Facebook Inc (NASDAQ:FB) is looking at a 6.6% pre-market drop, while semiconductor maven Ambarella Inc (NASDAQ:AMBA) is set to drag the Russell 2000 Index (RUT) lower once again, off 12.5% ahead of the bell. 
5. Crude oil, too, is facing new lows on the heels of China's weakness. Several big names are getting burnt as liquid gold continues to flirt with over six-year lows on demand concerns from the world's second largest economy. 

Market Statistics

• Apple Inc. (NASDAQ:AAPL) and Alibaba Group Holding Ltd (NYSE:BABA) were among the equities with unusual call and put activity on Friday. For the entire list, read Unusual Options Activity: VIX, AAPL, TSLA, and BABA.
• The Chicago Board Options Exchange (CBOE) saw 1.26 million call contracts traded on Friday, compared to 1.30 million put contracts. The resultant single-session equity put/call ratio jumped to 1.04, while the 21-day moving average rose to 0.74.
• For info on currencies, commodities, trading volume, market breadth, and more, read Stock Market Stats for August 21, 2015.

Earnings and Economic Data

The week kicks off quietly, with only the Chicago Fed's national activity index on tap. Later today, Atlanta Fed President Dennis Lockhart will speak in Berkeley, California. Turning to earnings, Tuniu (TOUR), Premier (PINC), and Qunar Cayman Islands (QUNR) all report quarterly results. To see what's on tap for the rest of the week, click here.