Dollar Strength Smacks Dow Jones Industrial Average

Dow Falls Triple Digits; Plus, Analyst Sees Record High for Apple

May 26, 2015 at 11:48 AM
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The Dow Jones Industrial Average (DJIA) has taken a turn for the worse today, as traders react to the surging U.S. dollar -- which earlier rose to a nearly eight-year high versus the yen. Stocks aren't the only ones feeling the heat from the strengthening greenback. At last check, crude oil was off roughly 2%, and at risk of snapping its impressive string of weekly winning streaks. Meanwhile, on the economic front, a round of well-received data has reignited speculation of a sooner-than-later Fed rate hike. Elsewhere, Time Warner Cable Inc (NYSE:TWC) and Charter Communications, Inc. (NASDAQ:CHTR) are dominating the conversation in equity markets following yesterday's big news.


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Midday Market Stats


Among the stocks with notable put volume is Michael Kors Holdings Ltd (NYSE:KORS), with the contracts crossing at five times the average intraday pace ahead of tomorrow morning's quarterly earnings announcement. At last check, the stock was off 1.6% at $60.68 -- and earlier hit an annual low of $59.80 -- thanks to a trio of price-target cuts. Meanwhile, buy-to-open activity has been detected at the equity's August 60 put.


One of the top losers on the Big Board is China-based Internet issue Youku Tudou Inc (ADR) (NYSE:YOKU). The stock rallied to a 52-week peak on Friday -- sending its 14-day Relative Strength Index (RSI) to 87, well into overbought territory. Today, the shares are off 9.4% at $27.85.


Gordmans Stores, Inc. (NASDAQ:GMAN) is one of the biggest decliners on the Nasdaq, down 11.1% at $5.75 -- and on track to close south of its 80-day moving average for the first time since Jan. 9. Year-to-date, though, the discount department store has more than doubled in value.


Daily Chart of GMAN Since January 2015 With 80-Day Moving Average


The CBOE Volatility Index (VIX) is up 1.9 points, or 15.3%, at 13.99. Earlier, the market's "fear gauge" crossed the 14 mark for the first time since May 13.


Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.56, with puts outpacing calls. At last check, SPY is down 2.2 points, or 1%, at $210.77.



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