Dow Jones Industrial Average Pushes For Another Weekly Win

Don't Blame the VIX

by Josh Selway

Published on Oct 16, 2015 at 12:09 PM

The Dow Jones Industrial Average (DJIA) is higher at midday, as traders weigh the latest round of earnings and economic data. Industrial production and job openings both edged lower for the month -- supporting the case for a delayed rate hike from the Fed -- while consumer sentiment turned higher. Also stoking the bullish flames is stimulus chatter out of Asia and a strong quarterly showing from blue chip General Electric Company (NYSE:GE), which just hit a seven-year high. As it stands now, the Dow, S&P 500 Index (SPX), ​and ​Nasdaq Composite (COMP) ​are all on pace for a third straight weekly win. 

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

 

  • As volatility products come under fire, Schaeffer's contributor Adam Warner says don't blame the VIX for troubles in the stock market. 
  • Does this fast-food chain's new board addition point to a spin-off in the works? 
  • 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 activity is Spirit Airlines Incorporated (NASDAQ:SAVE), after the company warned of a substantial drop in unit revenue for the fourth quarter. The shares earlier touched an annual low of $42.77, and were last seen down 13.6% at $43.24. As such, puts on the airliner are crossing at seven times the average midday pace, with the November 45 put coming in as the most popular contract.

Among the Big Board gainers is diagnostics firm Opko Health Inc. (NYSE:OPK), following a bullish note from J.P. Morgan Securities. The brokerage firm initiated coverage with an "overweight" rating and $14 price target, sending the shares 2.9% higher to $9.55. However, the security remains well below its record high of $19.20, hit in early June. 

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Among the biggest losers on the Nasdaq is Zafgen Inc (NASDAQ:ZFGN). The biotech has surrendered more than one-third of its value to trade at $13.95, after the U.S. Food and Drug Administration (FDA) put a partial hold on drug trials for its obesity drug in response to a patient's death. 

The CBOE Volatility Index (VIX) is off 0.4 point, or 2.4%, on pace for its third straight weekly drop. 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.61, with puts outnumbering calls. At last check, SPY was up 0.4 point, or 0.2%, at $202.77. 


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