SoFi posted earnings of 2 cents per share, beating Wall Street estimates by 2 cents, according to LSEG. It also reported $594.2 million in revenue, while analysts anticipated $571.8 million. But a high amount of Lucid’s outstanding shares, some 29%, have been sold short, according to FactSet. The electric vehicle maker’s shares were up nearly 17% on Monday morning without any public announcement or news to fully explain the move. Crude prices fell after a court in Hong Kong ordered the liquidation of Evergrande, which was once China’s largest property developer.

The prices you see in the index futures market do not necessarily indicate where the index or stock will open in the next trading session. An index tracks and measures the price of a collection of assets, such as a group of stocks. Index futures are derivative financial contracts, meaning they derive their value from an underlying asset, in this case, the index. Index futures can be bought and sold and their value changes with the value of the index. Unlike the stock market, financial futures trade six days a week, Sunday through Friday, and nearly around the clock.

Options are derivatives of the futures market, which have a market and exchange of their own. Options are purchased to give the holder the right—but not the obligation—to exercise the terms of the commodities deal. In a futures contract, both parties have an obligation to perform their part of the deal. ondas de elliot “We believe the Fed is getting close enough to its inflation target rate for investors who keep their expectations of rate cuts right sized to likely be pleasantly surprised later this year,” Stoltzfus said. “Our expectations remain for the Fed to cut once or twice in the second half of this year.”

1. Singapore’s central bank left its monetary policy unchanged as expected on Monday in its first quarterly monetary policy decision of 2024.
2. For example, if you opened the trade by buying five E-mini Dow contracts, you would close the trade by selling them with the same futures contract expiration date.
3. The Micro E-mini is one-tenth the size of the E-mini, and represents 50 cents per point with a margin requirement of about $800, as of September 2023.
4. The reduced estimates appeared to spark a rally for bonds and stocks.
5. The West Texas Intermediate contract for March fell $1.01, or 1.29%, to trade at $77 a barrel.
6. This creates the possibility of stocks also falling once the opening bell rings.

If an unexpected weather event shuts down major shipping lanes before the stock market opens, it could cause the Dow Futures to drop, because investors begin anticipating problems. This creates the possibility of stocks also falling once the opening bell rings. The exchange exists to keep trading fair and eliminate risk—such as one party not delivering on the contract. By having all of the futures contracts cleared through the exchange, this risk is eliminated because the exchange serves to guarantee every position. A futures contract is a legally binding agreement between two parties in which they agree to buy or sell an underlying asset at a predetermined price in the future. And the value of the underlying asset—in this case, the Dow—will usually change in the meantime, creating the opportunity for profits or losses.

“A few bad inflation prints would likely upset both bond and equity markets, as risk markets could again start pricing a higher probability of ‘hard landing,'” he wrote. “This week could be key,” said Chris Larkin, head of trading and investing at E-Trade. Index futures are derivatives of indexes such as the Dow Jones industrial average, S&P 500 and Nasdaq 100. Investing in these futures is essentially betting on the future value of the index.

It’s an index of 30 large publicly traded companies in the United States. In this guide, we take a look at the basics of trading Dow Jones Futures. Closing a position simply means entering an opposite trade to close an existing position. Let’s say you opened the trade by buying 10 E-mini Dow futures contracts.

Dow futures drop over 200 points weighed by Boeing, Fed rate-cut trajectory

This contract offers the lowest amount of leverage and has a contract size of $5 multiplied by the closing value of the DJIA. The E-mini Dow Futures Contract has quarterly expirations or settlement dates (March/June/September/December). https://bigbostrade.com/ As a result, a trader who believed the market were going to rally could simply acquire Dow Futures with a smaller amount of money and make a huge profit as a result of the leverage factor.

DJIA Overview

This contract has a DJIA value of 20,000 and a standard contract size of $10x the DJIA. Let’s say that on the final settlement date, the DJIA is trading at 20,400. Using a multiplier of 10, you owe the counterparty $4,000 (400 x$10). The position you take on a trade is the purchase price you have agreed upon with the seller. Dow Futures contracts trade on an exchange, meaning that the exchange is who you deal with when you create your position (your price and contract) on the commodity.

The two parties in a futures contract are basically betting on where the DJIA will trade on a specified day in the future. This is known as the “final settlement date.” As such, if you are looking to speculate on the DJIA, then trading Dow Jones futures is a good place to start. For example, if you opened the trade by buying five E-mini Dow contracts, you would close the trade by selling them with the same futures contract expiration date. If you opened by selling five contracts short, you would need to buy five to close the trade. One of the most attractive features of futures contracts is leverage. A trader can buy an E-mini Dow contract for about $5,500—and that futures contract is worth $5 for every point on the DJIA.

Tesla Stock Is Falling. Sell It Now, Says Analyst.

When you open a position, the broker will set aside the required initial margin amount in your account. To hold the position, you must maintain sufficient capital in your account to cover the maintenance margin. It appears that only the E-Mini and Micro E-Mini Dow Jones Futures contracts are actively traded these days, so we’ll focus on them for the rest of the article. This contract offers the highest leverage with a contract size of $25 multiplied by the closing value of the DJIA. So if the Dow Jones closes at 25,000, the contract value will be $625,000 (25,000 x 25).

Stocks were falling after the Federal Reserve kept interest rates steady, as expected. Stocks were falling Wednesday afternoon after the Federal Reserve kept rates steady. The inclusion of a company in the Dow Jones Industrial Average does not depend on defined criteria. Instead, an independent Wall Street Journal commission decides whether a share is to be included or excluded. There are no fixed times for reviewing the composition of the index, since changes are only made by the commission as and when they are needed. The shares included in it are weighted according to price; the index level represents the average of the shares included in it.

Traders are worried China’s property crisis is weighing on its economy and the slowdown could soften demand for oil this year. That comes after the stock finished last week down more than 13%, its worst weekly performance since October. These included mega-cap technology stocks Microsoft, Meta Platforms and Uber. With several of the major global markets, including the U.S., facing elections this year, investor anxiety is likely to rise, according to Stephen J. Rich, Chairman & CEO of Mutual of America Capital Management.

The Dow Jones is the stock market index; the Dow Jones Industrial Average (DJIA), which tracks 30 of the most prominent companies that trade on U.S. stock exchanges. Dow Jones futures are simply futures contracts that can be purchased to hedge or speculate against components in the DJIA. The futures are instruments derived from the index known as E-mini Dow futures. If you’ve ever listened to a financial market news broadcast, you’ve probably heard a reference to ‘futures trading.’ Many traders keep track of the futures market. That’s because it provides a reliable indication of the stock market’s direction at the opening bell for the day. The underlying value of these futures is derived from the Dow Jones Industrial Average (DJIA).

When the final settlement date arrives, whoever made the wrong bet is obligated to pay the other party based on the Dow’s value. Dow Futures are financial futures which allow an investor to hedge with or speculate on the future value of various components of the Dow Jones Industrial Average market index. The futures instruments are derived from the Dow Jones Industrial Average as E-mini Dow Futures. Boeing, which has been battered by issues with its 737 Max 9 planes, will be posting its quarterly earnings Wednesday morning.