The value of the Dow futures is often quoted before the stock market opens as an indicator of how the market will react during the trading day. We are expecting the Dow Jones to open 330 points higher, at 16,200, as the bounce back gets underway. As the US gets set to return after a rollercoaster Monday session which saw the Dow flash crash 1,000 points lower at one point, we could be well be starting to see the first signs of some stabilisation, after five consecutive daily declines. The Dow Jones, S+P 500 and NASDAQ 100 futures all went limit down before the open of US markets for their worst start since the financial crisis.
At one point the Dow Jones was set to open down by 1,000 points before actually opening 900 points lower. However, with the Dow Jones moving up and down by hundreds of points within minutes, many investors are likely to think twice about holding on for another leg higher. The US markets soon stabilised, but the Dow still fell below 16,000 for the first time in nearly 18 month,, and at points has threatened to post the worst one-day decline in its history. With the Dow Jones entering correction territory for the first time since 2011 things don抰 look like they will be any different this afternoon.
The latest COT Report (Commitments of Traders) for the Dow Jones futures market has been released by the CFTC, please see our Dow Jones COT report below. The Dow Jones Industrial Average, often referred to as the Dow, Dow 30 or Dow Jones, is one of the world’s most well known markets. The Dow represents a selection of thirty of the biggest American public companies.
In spread betting and CFD trading, rather than being called the Dow, Dow Jones or Dow 30 it is often called ‘Wall Street’ or the ‘US 30’. So, a 10% shift in IBM’s share price (around $21) would account for a large movement in the Dow Jones index (around 160 points). August 8, 2011 – The company worked with UBS to Dow Jones-UBS Roll Select Commodity Index.
However, a 10% shift in Bank of America’s share price (around $0.90) would only lead to a very small change in the Dow Jones (around 7 points). The other high value shares to watch out for in the Dow Jones are, as of April 2012, Caterpillar, Chevron and McDonalds. The Dow is based on Wall Street however, not all 30 companies that make up the DJIA are based on America’s East coast.