Schaeffer's 43rd Anniversary Stock Picks in 2024

Dow Jones Industrial Average Stumbles With Yellen On Deck

Stocks Jolted Before Janet; Plus, What's Next for Shake Shack?

May 22, 2015 at 11:51 AM
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The Dow Jones Industrial Average (DJIA) flashed higher out of the gate, but has been stuck below breakeven ever since. The index is now on pace to close with a weekly loss, though the Nasdaq Composite (COMP) and S&P 500 Index (SPX) are sporting week-to-date leads. With the long weekend in sight, traders are anxious for Fed Chair Janet Yellen's 1:00 p.m. ET speech -- especially after receiving word of a rise in the consumer price index (CPI), bolstering expectations for a 2015 rate hike. 

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

  • Deere & Company (NYSE:DE) is nearing annual highs after its earnings beat, but could a short-covering rally send it even higher?
  • While Schaeffer's contributor Adam Warner offered his two cents on Shake Shack Inc (NYSE:SHAK), Hewlett-Packard Company (NYSE:HPQ) CEO Meg Whitman's comments have sent this cybersecurity stock soaring.
  • Plus ... Checking in on the CBOE Volatility Index (VIX), the SPDR S&P 500 ETF Trust (SPY), and other noteworthy stats at midday.

 

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Speaking of HPQ, the stock's call are active as traders react to the company's earnings report. Calls are crossing at 14 times the expected intraday rate, with heavy attention being paid to the June 35 call. It looks like traders are buying to open these contracts, betting on extended gains above the strike by the close on Friday, June 19, when the options expire. At last check, the shares of the computer firm were 4.3% higher at $35.29. 

One of the top gainers on the Nasdaq is Gordmans Stores, Inc. (NASDAQ:GMAN). The stock is 12.6% higher at $7.41, thanks to strong first-quarter numbers and a price-target increase to $7 from $5 at Baird. The clothing retailer has been unbelievable on the charts in 2015, adding over 171%. 

Just a day after seeing impressive gainsSeadrill Ltd (NYSE:SDRL) is one of the biggest losers on the Big Board, last seen 4% lower at $13.37. Shares of the offshore drilling name are 12% higher year-to-date, but are having trouble breaking north of their 160-day moving average. 

 

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The CBOE Volatility Index (VIX) is up 0.1 point, or 0.5%, at 12.17, but is still below its 10- and 20-day moving averages. 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.82, with puts seeing almost twice as much action as calls. SPY was off 0.2 point, or 0.1%, at $213.30, at last check. 

 

 

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