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Apple Drags On Dow Jones Industrial Average

Does This Popular Strategy Live Up to the Hype?

Oct 26, 2015 at 11:51 AM
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The Dow Jones Industrial Average (DJIA) has spent the first half of the session modestly lower, as traders exercise caution ahead of the Federal Open Market Committee's (FOMC) two-day policy meeting later this week. In addition, Apple Inc. (NASDAQ:AAPL) shareholders are hitting the bricks ahead of earnings tomorrow night, with the iPhone maker the biggest blue-chip decliner. Outside of earnings, Wall Street is digesting a slew of M&A activity, on top of sinking oil prices and a 10-month low in new home sales.

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

 


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Among the stocks with notable option activity is Apple supplier -- and historic fourth-quarter laggard -- Cirrus Logic, Inc. (NASDAQ:CRUS), which is slated to report earnings after the close on Wednesday. At last check, CRUS has surrendered 10.5% to sit at $30.19, after fellow AAPL supplier Dialog Semiconductor plummeted on ominous earnings. The equity now sits on the short-sale restricted list, and puts are trading at seven times the average intraday pace, with potential buy-to-open action spotted at the November 34 strike.

One of the Nasdaq's top performers is TASER International, Inc. (NASDAQ:TASR), which is up 6.3% at $23.76, after the company announced a partnership with Microsoft Corporation (NASDAQ:MSFT). However, the stock remains more than 10% lower year-to-date.

Among the leading losers on the Big Board is oil-and-gas concern Chesapeake Energy Corporation (NYSE:CHK), which is slumping in step with crude. The shares were last seen 7% lower at $7.28, bringing their 2015 loss to 62.8%. Prior to today, CHK was in the black on a month-to-date basis, but is now sitting back below its 10-week moving average, which -- along with its 20-week cohort -- has stifled rebound attempts for the past year. 

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The CBOE Volatility Index (VIX) is up 0.6 point, or 4.4%, at 15.09.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.67, with puts outstripping calls. At last check, SPY was 0.6 point, or 0.3%, lower at $206.92.

 

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