Dow Jones Industrial Average Stumbles Toward Third Consecutive Weekly Loss

Did Leveraged ETFs Kill This Hedge Fund?

by Karee Venema

Published on Oct 2, 2015 at 11:58 AM
Updated on Oct 2, 2015 at 12:01 PM

Despite a big mid-week rally, the Dow Jones Industrial Average (DJIA) is easily on pace to notch its third straight weekly decline. Today's drop comes courtesy of a dismal nonfarm payrolls report -- sending the rumor mill swirling as to whether or not the Fed will raise interest rates this year. Helping to sour sentiment on the Street was a larger-than-expected drop in factory orders, as well as a lack of direction from the handful of Federal Reserve officials taking the mic today.

For instance, Boston Fed President Eric Rosengren said earlier that an end-of-year rate hike is a "reasonable forecast," while Minneapolis Fed President Narayana Kocherlakota did not comment on interest rates in his speech. Cleveland Fed President Loretta Mester is currently at the podium, while Fed Vice Chair Stanley Fischer is slated to speak this afternoon. The Fed will continue to be in focus next week, with the minutes from the latest Federal Open Market Committee (FOMC) meeting set for release.

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

 

  • What Wedbush had to say about Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR).
  • Was it really leveraged ETFs that wrecked this "upstart" hedge fund?
  • Plus ... Checking in on the CBOE Volatility Index (VIX), the SPDR S&P 500 ETF Trust (SPY), and other noteworthy stats at midday.

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Among the stocks with notable put volume is Dunkin Brands Group Inc (NASDAQ:DNKN), with the contracts crossing at three times the average intraday pace. The stock is up 2.1% at $43.89, despite a round of mostly bearish brokerage notes. However, the doughnut chain remains on the short-sale restricted list following yesterday's sales-induced slide, and option traders appear to be buying to open DNKN's October 42.50 put.

One of the biggest advancers on the Nasdaq is Wynn Resorts, Limited (NASDAQ:WYNN). The stock has jumped 16.2% to $60.09, amid speculation China could be ready to prop up Macau's struggling economy. Year-to-date, though, shares of the casino concern are down nearly 60%.

One of the top decliners on the Nasdaq is Amicus Therapeutics, Inc. (NASDAQ:FOLD), with the shares off 38.5% at $8.45 due to a regulatory hurdle. The stock has been on a sharp decline in recent weeks, and is now barely clinging to a 1.3% year-to-date gain.

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The CBOE Volatility Index (VIX) is up 0.3 point, or 1.4%, at 22.86.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.49, with puts outpacing calls. SPY is down just over 1 point, or 0.5%, at $191.11.


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