Deal-Making Drives Dow Jones Industrial Average Higher

Why Big VIX Moves are Unreliable Indicators

by Andrea Kramer

Published on Nov 2, 2015 at 11:52 AM

The Dow Jones Industrial Average (DJIA) dipped in the first minutes of trading -- weighed down by Visa Inc (NYSE:V) -- but quickly bounced back with a vengeance. A flood of M&A headlines are helping the major market indexes extend October's upward momentum, with traders encouraged by the strength of the collective corporate pocketbook. Against this backdrop -- and with healthcare leading the charge -- the Dow and its peers are comfortably higher, shrugging off a two-year low in the Institute for Supply Management's (ISM) manufacturing index.

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



Among the stocks with notable option activity is Endurance International Group Holdings Inc (NASDAQ:EIGI), which is down 21.1% at $10.55, and just off an all-time low of $10.29. Traders are panning the company's lackluster revenue guidance, as well as its bid for online marketing concern Constant Contact Inc (NASDAQ:CTCT). At last check, EIGI puts are trading at 43 times the average intraday pace, and have outnumbered calls by a margin of nearly 10-to-1.

One of the Nasdaq's top performers is biotech Dyax Corp. (NASDAQ:DYAX), which is up 30.8% at $35.99, and just tagged a near 14-year high of $36.68. Bolstering the stock is a $37.30-per-share buyout bid from Shire PLC (ADR) (NASDAQ:SHPG).

Among the leading losers on the Nasdaq is real estate operator Green Brick Partners Inc (NASDAQ:GRBK), which has plummeted 22% to $8.23, after the David Einhorn-led company cut its 2015 forecast. Furthermore, Credit Suisse trimmed its price target to $10 from $13. The stock is on pace for its worst session in nearly two years, and is poised to settle in single-digit territory for the first time since mid-June. 


CBOE Volatility Index (VIX) is down 0.5 point, or 3.4%, at 14.56.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.33, with puts having the edge over calls. At last check, SPY was 1.5 points, or 0.7%, higher at $209.40.




A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.
Wall Street Roars Higher Amid Civil Unrest
Investors weighed a mixed bag of jobs data
AstraZeneca Stock Flat Despite COVID-19 Vaccine News
AstraZeneca saw a rise in capacity for its COVID-19 vaccine candidate
The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.