Dow Jones Industrial Average Futures Lower on Oil, Ugly Earnings

What the January Barometer Is Saying About 2016

Jan 27, 2016 at 9:13 AM

WYNN
FCAU
BA
AAPL
DJIA

The Dow Jones Industrial Average (DJIA) is poised to drop at the open -- and erase a good portion of Tuesday's gains -- due to sliding oil prices and a batch of ugly earnings. March crude oil was last seen down 1.8% at $30.90 a barrel, ahead of the government's weekly inventories report. On the earnings front, disappointments from Dow components Apple Inc. (NASDAQ:AAPL) and Boeing Co (NYSE:BA) are weighing on sentiment. Meanwhile, traders are awaiting an afternoon Fed statement, as the Federal Open Market Committee (FOMC) meeting wraps up, though no significant changes to monetary policy are expected this month.

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

What can January's performance tell us about the year -- and month -- ahead?
How option traders are playing Amazon.com, Inc. (NASDAQ:AMZN) ahead of earnings.
Why Lockheed Martin Corporation's (NYSE:LMT) option pits went wild.
Plus... Crude sinks Europe, iPhone demand wanes, and traders prepare for a Fiat shakeup.

160127OV1

Futures on the Dow Jones Industrial Average (DJIA) are 94.2 points below fair value.

5 Things You Need to Know Today

China sat out a rally in Asia, while European stocks dropped on crude.
The Chicago Board Options Exchange (CBOE) saw 724,081 call contracts traded on Tuesday, compared to 447,812 put contracts. The resultant single-session equity put/call ratio fell to 0.62, while the 21-day moving average held steady at 0.76.
Apple Inc. (NASDAQ:AAPL) announced quarterly earnings that beat expectations, but revenue and iPhone sales fell short, due to what CEO Tim Cook described as a "turbulent environment." While traders have been pricing in disappointing iPhone figures for months, AAPL is pointed 2.9% lower in pre-market trading.
Wynn Resorts, Limited (NASDAQ:WYNN) is down 1.6% ahead of the bell, on news that Wynn Macau could be facing a $200 million charge for damages if its Wynn Palace project is further delayed. The stock has given up roughly three-fourths of its value since early 2014, but recent option traders seemed to be eyeing a rebound.
After dropping 17% so far in 2016, Fiat Chrysler Automobiles NV (NYSE:FCAU) is down 4.2% heading into the open, as CEO Sergio Marchionne is expected to make an announcement regarding a new production plan for the carmaker. FCAU also reported quarterly earnings today, but issued cautious full-year guidance.

Earnings and Economic Data

New home sales will be released, as well as the weekly update on domestic crude inventories. The FOMC will also announce its latest policy decision.

Stepping up to the earnings booth are United Technologies (UTX), Facebook (FB), Anthem (ANTM), Biogen (BIIB), Cliffs Natural Resources (CLF), Cirrus Logic (CRUS), Discover Financial (DFS), eBay (EBAY), Juniper Networks (JNPR), Las Vegas Sands (LVS), Norfolk Southern (NSC), Qualcomm (QCOM), and Tractor Supply (TSCO). To see what else is on this week's agenda, click here.

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!