Dow Jones Industrial Average Eyes Negative Start, Weekly Win

The Dow Jones Industrial Average (DJIA) is pointed lower ahead of the bell, as traders tread carefully ahead of next week's Federal Open Market Committee (FOMC) meeting -- where officials are expected to consider their first interest rate hike in nearly a decade. Nonetheless, barring a drop of more than 228 points today -- which is possible, given the recent volatility witnessed on Wall Street -- the Dow will post a weekly win. On the economic front, traders are digesting a flat producer price index (PPI) reading, and awaiting consumer sentiment data as well as the Treasury budget.

 

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

 

• Gilead Sciences, Inc. (NASDAQ:GILD) broke out yesterday, as the healthcare sector proved skeptics wrong.
• These U.S.-listed stocks were roughed up, as Brazil's credit rating got slapped down.
• Strong earnings -- and a subsequent raft of bullish brokerage notes -- fueled one cybersecurity stock's rally.
• 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 more than 51 points below fair value.

 

5 Things You Need to Know Today

 

1. Chinese stocks inched higher, with the Shanghai Composite posting its first weekly win in about a month.
2. The CBOE Volatility Index (VIX) tanked Thursday as traders took a risk-on approach, with the market's "fear gauge" closing below its 20-day trendline for the first time since mid-August. However, the VIX remains stuck north of the key 23.90 level.
3. Online auction site eBay Inc (NASDAQ:EBAY) is testing a rapid shipping service in Germany that sounds a lot like Amazon Prime. For the cost of a $22 membership fee, customers can be assured of free two-day shipping on a number of items. EBAY shares faltered yesterday after a Cantor Fitzgerald downgrade to "hold" -- the rating to which Piper Jaffray upgraded the stock earlier this month.
4. Fresh off acquiring Alstom SA's power unit, General Electric Company (NYSE:GE) said it plans to sell GE Capital's transportation finance business to Bank of Montreal (USA) (NYSE:BMO). Financial terms of the deal were not disclosed.
5. While shares of Baidu Inc (ADR) (NASDAQ:BIDU) continue to struggle, the company has just secured an additional two board seats at China-based travel firm Qunar, in which it owns a more than 50% stake.

 

 

 

Market Statistics

 

• General Motors Company (NYSE:GM), Wynn Resorts, Limited (NASDAQ:WYNN), and Lululemon Athletica inc. (NASDAQ:LULU) were among the equities with unusual call and put activity on Thursday. For the entire list, read Unusual Options Activity: GM, WYNN, LULU, and BX.
• The Chicago Board Options Exchange (CBOE) saw 633,412 call contracts traded on Thursday, compared to 488,693 put contracts. The resultant single-session equity put/call ratio rose to 0.77, while the 21-day moving average remained at 0.76.
• For info on currencies, commodities, trading volume, market breadth, and more, read Stock Market Stats for September 10, 2015.

 

Earnings and Economic Data

 

Today's schedule features the preliminary Thomson Reuters/University of Michigan consumer sentiment index and the Treasury budget. The week's earnings slate draws to a close with reports from Kroger (KR) and Mattress Firm (MFRM). To see what's on next week's docket, click here.