DuPont Leads Dow Jones Industrial Average Higher; S&P Win Streak at Risk

The Bullish Implications of the S&P's Hot Streak

Oct 6, 2015 at 11:46 AM
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The Dow Jones Industrial Average (DJIA) is on track for a third straight daily win -- while the broader S&P 500 Index (SPX) is struggling to reach its sixth -- as traders gear up for the start of earnings season. Helping the blue-chip benchmark to a modest lead is DuPont's (NYSE:DD) 10% surge, on news that the company's CEO plans to retire later this month. Elsewhere, the August trade deficit widened to its highest level in five months, while crude oil briefly shot above $50 per barrel -- and remains solidly higher. Meanwhile, the International Monetary Fund (IMF) reduced its 2015 global growth forecasts yet again, citing "more pronounced" downside risks.

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Among the stocks with notable put volume is genetics specialist Illumina, Inc. (NASDAQ:ILMN), as the contracts are flying off the shelves at 36 times the usual intraday rate -- and nine times the pace of calls. Triggering the activity is the equity's guidance-induced 15% drop to $138.72 -- not to mention a new annual low of $130 -- which has the shares on the short-sale restricted list. ILMN's most active strike is the October 125 put, largely thanks to a 12,704-contract block that crossed in early trading.

The biggest advancer on the Nasdaq is chipmaker PMC-Sierra Inc (NASDAQ:PMCS), up 33.4% at $10.26 -- and fresh off a nine-year high of $10.28. The shares are benefiting from the company's newly announced $2 billion buyout.

One of the leading losers on the Big Board is Container Store Group Inc (NYSE:TCS), down 16.5% at $13. The stock is reeling after the retailer announced lower-than-expected second-quarter profit and sales, and was subsequently hit with a price-target cut to $16 from $18 at Sterne Agee CRT.

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The CBOE Volatility Index (VIX) is up 0.2 point, or 1.2%, at 19.77.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.66, with puts outstripping calls. At last check, SPY is down 0.7 point, or 0.4%, at $197.76.


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