Dow Jones Industrial Average Back in the Black After Post-Payrolls Dip

The Dow Jones Industrial Average (INDEXDJX:DJI) has clawed its way higher

by Andrea Kramer

Published on Nov 7, 2014 at 11:53 AM
Updated on Apr 20, 2015 at 5:32 PM

The Dow Jones Industrial Average (INDEXDJX:DJI) was down more than 60 points at its intraday low, but the blue-chip bellwether has since clawed its way north of breakeven to flirt with an all-time best of 17,566.19 -- its third straight day in record-high territory. While the initial reaction was negative, some traders are adopting a glass-half-full view of the government's highly anticipated nonfarm payrolls report; the number of jobs grew by a slimmer-than-expected 214,000 in October, but the unemployment rate unexpectedly decreased to 5.8%. Likewise, the S&P 500 Index (SPX) spent the first couple of hours in the red, but has since climbed to a record peak of 2,034.26, as speculators digest a speech from Fed Chair Janet Yellen, and await comments from a handful of fellow central bankers.

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

  • The mobile game maker attracting option bulls
  • The retailer exploring new lows after a sales warning
  • Plus ... Checking in on the CBOE Volatility Index (VIX), the SPDR S&P 500 ETF Trust (SPY), and other noteworthy stats at midday.

Midday Market Stats

Among the stocks with notable call volume is King Digital Entertainment PLC (NYSE:KING), which has seen nearly 10,000 contracts change hands -- 18 times its average intraday call volume, and roughly 10 times the number of puts exchanged. Like fellow game maker Zynga Inc (NASDAQ:ZNGA), KING was last seen 5.4% higher at $13.90, and one cautiously optimistic option trader is betting on more short-term upside, initiating a bull call spread at the December 14 and 17 strikes. Outside of the options arena, RBC and Deutsche Bank upped their price targets to $17 and $13, respectively, though J.P. Morgan Securities and Wedbush reduced their targets to $17 and $20.

For more midday statistics and stocks on the move, head to page 2.

E-commerce software concern ChannelAdvisor Corp (NYSE:ECOM) is the top gainer on the Big Board today, up 42.3% at $17.36, thanks to a solid earnings showing. However, the equity remains nearly 58% lower year-to-date, and BMO and Raymond James aren't biting, with both brokerage firms reducing their price targets on ECOM this morning.

On the flip side, Abercrombie & Fitch Co. (NYSE:ANF) is among the worst performers on the New York Stock Exchange, down 13.5% to $30.59, after issuing a sales warning. In earlier trading, the retailer -- which will unveil its official third-quarter figures Wednesday, Dec. 3 -- touched a two-year low of $30.31, and now sits 7% lower year-to-date.

Daily Chart of ANF since December 2013

The CBOE Volatility Index (VIX) initially ticked higher, but has since dropped 0.1 point, or 0.9%. For the week, the "fear gauge" is on pace for a 3.4% deficit.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) weighs in at 1.70, with puts handily outnumbering calls. SPY tagged a new all-time high of $203.60 earlier, was last seen 0.1% higher at $203.39.


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