Dow Jones Industrial Average Drops 133 on Post-Fed Uncertainty

Stocks Sink as Post-Fed Woes Intensify; Plus, the Biotech Booming 35%

by Alex Eppstein

Published on Sep 18, 2015 at 12:02 PM

The Dow Jones Industrial Average (DJIA) is extending its post-Fed woesplunging triple digits -- and struggling to stay out of correction territory -- as traders consider the implications of the central bank's decision not to raise interest rates amid a weak global economy. Potentially adding to the volatility is the fact that today is quadruple-witching Friday. While the only notable item on the docket is the Conference Board's index of leading economic indicators -- which edged higher last month -- next week is a big one, with Fed Chair Janet Yellen slated to speak and gross domestic product (GDP) numbers on tap. On the commodities front, gold is up big amid the broad-market downturn, while crude is getting drilled.

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Among the stocks with notable call volume is software giant Adobe Systems Incorporated (NASDAQ:ADBE), with the contracts racing to nine times their average intraday amount. At last check, the stock was up 3.2% at $82.89, as the company's quarterly results and bullish analyst attention overshadow downbeat guidance. Digging deeper in the options pits, traders may be buying new positions at the September 85 call, hoping ADBE topples the strike by tonight's close, when front-month options expire.

 

One of the leading gainers on the Big Board is Kinross Gold Corporation (USA) (NYSE:KGC), up 5% at $1.77 amid a sector-wide bounce. Also helping the miner's shares northward is the company's decision to upwardly revise the lower end of its production outlook, and lower its full-year capital spending and overhead cost forecasts.

One of the worst performers on the Big Board is hotel chain La Quinta Holdings Inc (NYSE:LQ), down 15% at $16.10 -- and fresh off a record low of $15.69. The stock is getting hit by a major management shake-up, lackluster guidance, and a pair of bearish brokerage notes.

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The CBOE Volatility Index (VIX) is up 0.8 point, or 3.8%, at 21.95, with earlier gains capped by its 10-day moving average.

 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.90, with puts nearly doubling calls. SPY was last seen 1.7 points, or 0.9%, lower, at $197.

 


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