Dow Jones Industrial Average Battles Back from 180-Point Loss

Dow Takes Back 18,000; Plus, Verizon's Big Acquisition

May 12, 2015 at 11:24 AM
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The Dow Jones Industrial Average (DJIA) is feeling the heat once again, amid an ongoing surge in bond yields. In fact, at its intraday low, the blue-chip index was down more than 180 points -- and well below the key 18,000 millennium mark -- though it has since bounced back above that level. On the economic front, traders are digesting the latest Job Openings and Labor Turnover Survey (JOLTS), which revealed job openings fell more than expected in March.

 

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Among the stocks with notable option volume is cloud concern Rackspace Hosting, Inc. (NYSE:RAX), with the contracts crossing at 27 times the average intraday rate. Bringing traders to the options pits is the equity's earnings-induced bear gap, with RAX last seen almost 14% lower at $45.73 -- landing the stock on the short-sale restricted list. Digging deeper, traders are buying to open the security's June 44 put, in hopes of additional downside through back-month expiration.

 

Among the top gainers on the Big Board is media mogul AOL, Inc. (NYSE:AOL), following reports the company will be purchased by VZ. At last check, the shares were over 18% higher at $50.33, and fresh off an annual peak of $50.75.

 

One of the Nasdaq's biggest advancers is magicJack VocalTec Ltd (NASDAQ:CALL), which has soared 11% to trade at $7.80. Boosting the cloud communications stock -- which remains 4% lower year-to-date, but is poised to close atop its 120-day moving average for the first time in a year -- is a well-received turn in the earnings confessional.

Daily Chart of CALL Since May 2014 With 120-Day Moving Average

 

The CBOE Volatility Index (VIX) is up 0.2 point, or 1.7%, at 14.09.

 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.11, with puts more than doubling calls. At last check, SPY was down 0.7 point, or 0.3%, at $209.92.


 

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