Dow Jones Industrial Average Futures Spin Wheels Ahead of Fed Decision

Futures on the Dow Jones Industrial Average (DJIA) are sitting below fair value, as traders gear up for the Federal Open Market Committee's (FOMC) rate decision. The much-hyped announcement is expected at 2 p.m. ET, followed by statements from Fed Chair Janet Yellen. Markets have been moving higher leading up to the event, but many on the Street are split on whether interest rates will be raised for the first time in roughly a decade. In the meantime, traders are digesting drops in both weekly jobless claims and August housing starts.

 

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

 

• Should you fade the Fed? Schaeffer's contributor Adam Warner offers his two cents.
• The jumping Dow component that just can't shake the skeptics. 
• Why Goldman Sachs is optimistic on this Google Inc (NASDAQ:GOOGL) rival.
• Plus … 5 things you need to know this morning -- including stocks making waves and what's happening overseas.

And now, on to the numbers…

 

Futures on the Dow Jones Industrial Average (DJIA) are roughly 7 points below fair value. 

 

5 Things You Need to Know Today

 

1. Overseas benchmarks were mixed, amid pre-Fed caution and news of a major investigation in China. 
2. The Chicago Board Options Exchange (CBOE) saw 760,840 call contracts traded on Wednesday, compared to 557,526 put contracts. The resultant single-session equity put/call ratio dropped to 0.73, while the 21-day moving average stayed at 0.78. 
3. Fitbit Inc (NYSE:FIT), Under Armour Inc (NYSE:UA), and Anheuser Busch Inbev SA (ADR) (NYSE:BUD) were among the equities with unusual call and put activity on Wednesday. For the entire list, read Unusual Options Activity: FIT, UA, BUD, and MO. 
4. Another M&A deal has gone down in the media sector. Cablevision Systems Corporation (NYSE:CVC) is being purchased by Netherlands-based Altice. The deal is reportedly worth $17.7 billion, or $34.90 per share. CVC is now poised to jump nearly 16% at the open. 
5. Oracle Corporation (NYSE:ORCL) ​is set to take a dive a day after receiving some bullish attention on the Street, after the company released disappointing fiscal first-quarter numbers. Before the open, the shares are pointed 2.6% lower. 

 

Earnings and Economic Data

 

Housing starts are on the docket for today, as is the Philadelphia Fed's business outlook survey and weekly jobless claims. To see what else is coming up on this week's docket, click here.