Bank Stocks Drag Dow Jones Industrial Average Lower

The Dow Jones Industrial Average (INDEXDJX:DJI) is backpedaling from all-time highs

Nov 12, 2014 at 11:59 AM
facebook X logo linkedin

The Dow Jones Industrial Average (INDEXDJX:DJI) dropped nearly 80 points out of the gate today, backing down from all-time peaks. Although the Dow has trimmed its deficit to 12 points, or 0.1%, the index remains in danger of snapping its five-session streak of hitting record highs. Dragging the blue chips lower are JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group Inc (NYSE:GS), down 1.4% and 1%, respectively, as big-cap financial concerns reel in the face of forex fines. In addition, speculators were spooked by less-than-stellar data out of Europe and a "sooner rather than later" rate-hike campaign from Philadelphia Fed President Charles Plosser, which have trumped a bigger-than-expected uptick in September wholesale inventories.

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

  • M&A news for Yahoo! Inc. (NASDAQ:YHOO), which is touching new highs despite behind-the-scenes drama.
  • Meanwhile, YHOO affiliate Alibaba Group Holding Ltd (NYSE:BABA) is reveling in more bullish analyst attention amid buzz of an eBay Inc (NASDAQ:EBAY) partnership.
  • 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 Staples, Inc. (NASDAQ:SPLS), as traders bet bullishly ahead of earnings next Wednesday, Nov. 19. Intraday call volume is running at 10 times the norm, with most of the action consisting of buy-to-open activity at the November 14 call. Specifically, one trader bought to open a block of 12,000 calls for $0.17 apiece, which will be profitable if SPLS topples $14.17 (strike plus premium paid) by the close on Friday, Nov. 21, when front-month options expire. SPLS was last seen 0.1% higher at $13.05, with help from a price-target boost to $12 at Jefferies.

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

SeaWorld Entertainment Inc (NYSE:SEAS) is the biggest loser on the Big Board today. The stock is swimming in red ink after the firm said lackluster attendance translated into weaker-than-expected third-quarter earnings. At last check, the shares have surrendered 11.1% to linger near $16.54, after earlier touching a new all-time low of $16.50.

Weekly Chart of SEAS since April 2013

Meanwhile, one of the top advancers on the New York Stock Exchange is Matson Inc (NYSE:MATX), which has surged more than 20% to flirt with record highs at $35.10. Bolstering the equity was news that Matson is buying the Alaska operations of rival Horizon Lines for $69 million.

The CBOE Volatility Index (VIX) has spent the session in the black, up 0.1 point, or 1.1%, at 13.06. The "fear gauge" is now on pace to end north of 13 for the first session in three.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.71, with puts handily outpacing calls. Like the Dow and S&P 500 Index (SPX), SPY is on track to snap its five-session string of all-time highs, down 0.1% at $203.96.


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!