Dow Jones Industrial Average Waffles Amid Consumer Sentiment, GDP Data

Fundamental events are negatively impacting Digital Ally, Inc. and Workday Inc

Nov 25, 2014 at 11:48 AM
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The Dow Jones Industrial Average (INDEXDJX:DJI) is slightly higher, as traders weigh a decline in consumer confidence against a better-than-expected preliminary gross domestic product (GDP) reading for the third quarter. Specifically, the Conference Board's consumer confidence index fell this month to its lowest level since June -- to 88.7 from a revised 97.1 in October -- while the GDP climbed to an annualized rate of 3.9%. At last check, the Dow was up 10.5 points, or 0.1%. Elsewhere, the S&P 500 Index (SPX) is down 2 points, and the Nasdaq Composite (COMP) has added 3.7 points.

Continue reading for more on today's market -- and don't miss:

  • How option bears and short sellers are getting burned by Qihoo 360 Technology Co Ltd's (NYSE:QIHU) earnings beat.
  • Schaeffer's contributor Adam Warner wonders whether rising volatility in the oil markets will spill over to stocks.
  • 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 put volume is Coinstar parent Outerwall Inc (NASDAQ:OUTR), which has stumbled 2.5% to hover near $69.63 following yesterday's price hike at its Redbox kiosks. Specifically, puts are trading at 25 times the expected intraday rate, with attention being paid to the April 45 and 60 puts -- the equity's two most popular strikes. It appears one speculator is selling to open the lower strike and buying to open the higher, implementing a bear put spread in the hopes of additional long-term downside.

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

One of the major Nasdaq decliners is law enforcement equipment provider Digital Ally, Inc. (NASDAQ:DGLY), which is plunging in the wake of a grand jury decision last night not to indict a police officer for killing a teenager in Ferguson, Missouri. At last check, the stock was 6.6% lower at $13.13, just a day after rallying more than 12%. In terms of sentiment, more than one-quarter of DGLY's float is sold short, so this morning's sell-off is likely being cheered by at least one group of speculators.

Daily Chart of DGLY Since September 2014

Meanwhile, HR application designer Workday Inc (NYSE:WDAY) has stumbled after analysts panned the company's latest earnings results. Currently, the shares are down 5.6% to trade at $87.25. Taking a step back, the brokerage crowd is evenly divided on WDAY, which sports 11 "strong buy" ratings and an equal number of "hold" opinions.

The CBOE Volatility Index (VIX) is up a slim 0.03 point, or 0.2%, and remains at risk of finishing below 13 for a third straight session.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.50, as puts more than double calls. SPY is down 0.4 point, or 0.2%, at $206.90.


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