Schaeffer's 43rd Anniversary Stock Picks in 2024

Dow Jones Industrial Average Bounces Back In a Big Way

Sell in May? Not Today. Dow, Biotech Come Back Swinging

May 1, 2015 at 11:40 AM
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After yesterday's drubbing, the Dow Jones Industrial Average (DJIA) came out swinging this morning. At last check, Verizon Communications Inc. (NYSE:VZ), Chevron Corporation (NYSE:CVX), and Visa Inc (NYSE:V) are the lone blue chips in the red -- the latter two after reporting earnings. On the flip side, Intel Corporation (NASDAQ:INTC) is pacing the bullish majority, as tech and drugmakers fight back. The S&P 500 Index (SPX) and Nasdaq Composite (COMP) are also paring some of yesterday's deficit, as traders are seemingly shrugging off uninspiring reports on construction spending and manufacturing.

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

 

150501MMC_Stats

 

Among the stocks with notable call activity is Eli Lilly and Co (NYSE:LLY), which is 1.5% higher at $72.95, amid apparent takeover chatter. Calls are trading at nine times the average intraday pace, and have outnumbered puts by roughly 10-to-1. It looks like speculators are buying to open weekly 5/1 73- and 73.50-strike calls, to gamble on more upside by the close today, when the options expire.

 

One of the top gainers on the Nasdaq is Olympic Steel, Inc. (NASDAQ:ZEUS). The shares were last seen 22.7% higher at $13.44, after the company reported a surprise first-quarter profit.

 

On the flip side, one of the biggest losers on the Nasdaq is Insulet Corporation (NASDAQ:PODD). The stock is down 15.4% at $25.27, and earlier touched a new annual low of $24.95, after the company confessed to a steeper-than-expected first-quarter loss. This is PODD's second big-time post-earnings bear gap of 2015.

 

150501MMC_PODD

 

The CBOE Volatility Index (VIX) is down 1 point, or 6.9%, at 13.54, ending its short-lived stint north of 14. For the week, however, the "fear gauge" is on pace to end more than 8% higher.

 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.98, with puts nearly doubling calls. At last check, SPY is up 1.1 points, or 0.5%, at $209.60.

 

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