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Dow Jones Industrial Average Down 218 in Pre-Yellen Bloodbath; Caterpillar Collapses

Caterpillar Crushes Dow; Plus, Apple Bears Most Active in a Year

Sep 24, 2015 at 12:08 PM
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A rocky start for the Dow Jones Industrial Average (DJIA) has evolved into a downright ugly day. The blue-chip index has extended its deficit to more than 200 points, as traders prepare for remarks from Fed Chair Janet Yellen. All 30 Dow components are in the red, with Caterpillar Inc. (NYSE:CAT) down more than 6% after a profit warning. What's more, the Nasdaq Composite (COMP) and S&P 500 Index (SPX) are both back in correction territory, with the latter dipping below the all-important 1,917 level. This all comes after the major losses from bourses in Europe and Japan as the Volkswagen scandal spread

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Among the stocks with notable put activity is SolarCity Corp (NASDAQ:SCTY). The contracts are crossing at 1.5 times the pace normally seen at this point in the day. Two contracts garnering attention are the weekly 9/25 42- and 43-strike puts, as traders bet on extended losses by tomorrow's close. The energy stock is down 6% at $41.17, despite some positive attention from the Street

 

One of the top losers on the Nasdaq is Caesars Entertainment Corp (NASDAQ:CZR). The casino name has shed 13.8% to fall to $6.92, as the company tries to avoid bankruptcy. Coming into today, the shares were already off nearly 49% lower in 2015, recently pressured by their descending 200-day moving average. 

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Over on the Big Board, one of the top losers is JinkoSolar Holding Co., Ltd.(NYSE:JKS), with the shares trading in step with fellow alternative-energy names. JKS was last seen down 7.3% at $18.91, a move that puts it in negative territory on a year-to-date basis. 


The CBOE Volatility Index (VIX) has added 2.2 points, or 9.9%, on pace for its highest close since Sept. 10.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.35, as puts continue to outpace calls. The SPY was down 2.7 points, or 1.4%, at $190.86 at last check. 

 
 

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