MMR

Dow Jones Industrial Average Tries Again for Triple-Digit Win

Breaking Down the Biggest VVIX Move Ever

Aug 26, 2015 at 12:00 PM
facebook X logo linkedin


"If at first you don't succeed" seems to be the mantra of the Dow Jones Industrial Average (DJIA) today, with the blue-chip barometer up triple digits at last check. However, we've all seen this before; specifically, yesterday's massive reversal into the close. Nevertheless, a mix of bargain hunting, an upbeat durable goods reading, and $15 billion buyout buzz has both the DJIA and the S&P 500 Index (SPX) on track to snap their six-session losing streaks -- the latter of which flashed a signal not seen since 1987.

Also adding to the bullish bias are relatively dovish comments from New York Fed President William Dudley, who said, "From my perspective at this moment, the decision to begin the normalization process at the September FOMC meeting seems less compelling to me than it was a few weeks ago." Tomorrow kicks off a highly anticipated central bank event.


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

 

 

150826mmc

 

Among the stocks with notable put volume is Oshkosh Corporation (NYSE:OSK), with the contracts crossing at 33 times the average intraday pace. The stock is up 4.4% at $40.21, after reports the company inked a massive defense contract was met with applause from the brokerage bunch. Option players, meanwhile, appear to be throwing in the towel on their bearish bets, selling to close their out-of-the-money September 35 puts.

 

The top gainer on the Big Board is oil-and-gas issue Cameron International Corporation (NYSE:CAM). The stock has popped 41% to trade at $59.95, after Schlumberger Limited (NYSE:SLB) put in a $14.7 billion cash-and-stock bid on the firm -- equating to $66.36 per share.

 

One of the biggest losers on the New York Stock Exchange is GrubHub Inc (NYSE:GRUB). The restaurant delivery service has plunged 8.2% to churn near $25.37 -- and just hit a record low of $25.06 -- after Barclays took a glass-half-full approach to the stock. Longer term, GRUB has shed almost half its value since topping out at an all-time peak of $47.95 in late March.

 

150826grub

 

The CBOE Volatility Index (VIX) is down 1.3 points, or 3.7%, at 34.70. However, the market's "fear gauge" remains up 23.8% this week.

 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.58, with puts outpacing calls. SPY is up 2.9 points, or 1.6%, at $190.18.

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
 (ad)