Surging Dollar Sends Dow Jones Industrial Average Tumbling

The dollar hit a 12-year high against the euro earlier

Mar 10, 2015 at 11:52 AM
facebook twitter linkedin

The Dow Jones Industrial Average (INDEXDJX:DJI) is down more than 1% at midday -- tracking the losses of its overseas peers, and erasing all of yesterday's big gains -- as a surging dollar overshadows relatively upbeat readings on job openings and wholesale inventories. Specifically, the greenback jumped to a 12-year peak versus the euro, prompting a sharp drop in blue-chip financial name JPMorgan Chase & Co. (NYSE:JPM). Elsewhere on the Street, crude oil has retreated back below $50, amid the strengthening currency.

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

Midday Market Stats

Among the stocks with notable call volume is Urban Outfitters, Inc. (NASDAQ:URBN), with the contracts changing hands at 15 times what's typically seen at this point in the day. The shares have surged 9.5% to $43.25 -- and hit a new annual high of $43.44 earlier -- after a strong showing on the earnings stage and subsequent round of bullish brokerage attention. Against this backdrop, it appears a number of speculators are selling to close their March 40 calls ahead of next Friday's expiration.

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

Escalera Resources Co (NASDAQ:ESCRP) is the biggest loser on the Nasdaq, off 49% at $8.98. Sparking today's sell-off is news the oil-and-gas issue suspended its quarterly dividend, and as a result, the stock is back in the red on a year-to-date basis.

Flooring expert Lumber Liquidators Holdings Inc (NYSE:LL) is the top gainer on the Big Board. The equity is up 11.9% at $31.28, after the company unveiled its agenda for Thursday's conference call for investors. Heading into today's session, the stock was staring at a 46% month-to-date deficit. Not surprisingly, LL's 14-day Relative Strength Index (RSI) is docked at 19 -- in oversold territory -- suggesting a quick bounce may have been in the works.

Daily Chart of LL Since January 2015

The CBOE Volatility Index (VIX) is up 1.3 points, or 8.8%, at 16.39, on pace to notch its highest close since Feb. 11.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.25, with puts more than doubling calls. SPY was last seen down 2.5 points, or 1.2%, at $205.85.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial


Special Offers from Schaeffer's Trading Partners