Dow Jones Industrial Average Futures Signal Rebound

Dow Jones Industrial Average (DJIA) futures are signaling a higher start to the day, as stocks look to recover some of yesterday's steep losses. A brief rebound in oil prices also boosted stocks, although October-dated crude has since swung 0.7% lower to $44.61 per barrel, ahead of today's crude inventories report. The recent volatility could continue into next week, as traders speculate on the odds of the Fed hiking interest rates at its highly anticipated September meeting.

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

• What to expect after the pullback from record highs, according to Schaeffer's Senior Quantitative Analyst Rocky White.
• 3 volatile energy stocks garnering analyst attention.
• What "crazy" move one activist thinks will turn Tesla Motors Inc (NASDAQ:TSLA) into "a walking insolvency."
• Plus... Central bank concerns weigh on Japan, the highly anticipated Monsanto merger, and two drugmakers in the spotlight.

Futures on the Dow Jones Industrial Average (DJIA) are about 49 points above fair value.

5 Things You Need to Know Today
 

1. Japan stocks fell amid central bank concerns.
2. The Chicago Board Options Exchange (CBOE) saw 703,006 call contracts traded on Tuesday, compared to 529,361 put contracts. The resultant single-session equity put/call ratio rose to 0.75, while the 21-day moving average rose to 0.66.
3. Monsanto Company (NYSE:MON) is set to open up 0.6%, following the announcement that it had come to a buyout agreement with German pharmaceutical company Bayer AG for about $66 billion. The highly anticipated M&A agreement values MON at approximately $129 per share, or over a 20% premium to its close of $106.10 yesterday.   
4. In other merger news, Vitae Pharmaceuticals Inc (NASDAQ:VTAE) is set to more than double, following a merger agreement with Allergan plc Ordinary Shares (NYSE:AGN). AGN will buy the company for $639 million, or $21 per share -- a 159% premium to VTAE's closing price of $8.10 yesterday.
5. Sarepta Therapeutics Inc (NASDAQ:SRPT) is up 13.7% in electronic trading, following news that the Food and Drug Administration's (FDA) most vocal critic of SRPT's eteplirsen -- a drug intended to treat Duchenne Muscular Dystrophy (DMD) -- had left his position at the FDA. Eteplirsen advocates are hoping that Dr. Ronald Farkas' departure is a sign that approval for the drug is forthcoming, ending months of anticipation.

Earnings and Economic Data

Today, import and export prices will come out. Cracker Barrel (CBRL) will step up to the earnings stage. To see what else is coming up on this week's schedule, click here.