Dow Jones Industrial Average Treks North as FOMC Kicks Off

Why These 3 Stocks Could Be in Trouble

Sep 16, 2015 at 12:14 PM
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The Dow Jones Industrial Average (DJIA) is muscling higher amid the kickoff of the Federal Open Market Committee (FOMC) two-day policy meeting, which will culminate in the most highly anticipated rate-hike decision in years. Meanwhile, traders are weighing an unexpected decline in consumer prices -- their first since January -- against a nearly 10-year high in homebuilder sentiment. Also, weekly crude stockpiles surprisingly dropped, sending liquid gold about 3% higher -- and helping energy stocks outperform the broader market.

 

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

 

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Among the stocks with notable put volume is beer baron Anheuser Busch Inev SA (ADR) (NYSE:BUD), as the contracts are changing hands at nine times the normal intraday pace. New positions are being initiated at the out-of-the-money October 100 put, which is the equity's most popular strike. BUD was last seen 6.2% higher at $114.72 amid takeover talks.

 

The biggest gainer on the Nasdaq is Intra-Cellular Therapies Inc (NASDAQ:ITCI), following upbeat drug data. Shares of the drugmaker are nearly 74% higher at $45.40, and fresh off a record peak of $48.

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One of the worst performers on the Big Board is food pick-up platform GrubHub Inc (NYSE:GRUB), off 5.3% at $26.37. Pressuring the stock is a price-target cut to $25 from $30 at Cowen and Company, which is more of the same for the chronic underperformer.

The CBOE Volatility Index (VIX) is down 1.2 points, or 5.5%, at 21.30 -- on track for its lowest finish since Aug. 20.

 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.49, with puts outstripping calls. At last check, SPY is 1.2 points, or 0.6%, higher, at $199.66.

 

 

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