Dow Jones Industrial Average Loses Steam

The Valeant Script Is Nothing New

Nov 5, 2015 at 12:10 PM
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The Dow Jones Industrial Average (DJIA) has explored a range of 150 points, and both sides of breakeven, but was last seen modestly lower. Traders are exercising caution ahead of tomorrow's key nonfarm payrolls report, which could have December rate-hike implications -- though expectations for a 2015 policy shift have been rising amid the recent Fed chatter. In the meantime, Wall Street is weighing a surprisingly dovish policy statement from across the pond, as well as a bigger-than-expected increase in weekly jobless claims and an uptick in third-quarter productivity.

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Among the stocks with notable option activity is tech concern NVIDIA Corporation (NASDAQ:NVDA), which is slated to report third-quarter earnings tonight. NVDA calls are running at 18 times the average intraday pace, with Trade-Alert attributing most of the action to a massive three-strike bullish spread in the weekly 11/6 series. Analysts and short sellers, on the other hand, aren't quite as optimistic. At last check, NVDA was 0.5% lower at $27.90, but remains 39.2% higher year-to-date.

One of the Nasdaq's top performers is vacation rental issue HomeAway, Inc. (NASDAQ:AWAY), which is up 25.3% at $40.13 -- and fresh off an annual high of $40.25 -- after Expedia Inc (NASDAQ:EXPE) said it will buy the firm for nearly $4 billion in cash and stock

Among the leading losers on the Nasdaq is cybersecurity concern FireEye Inc (NASDAQ:FEYE), which is just off a record low of $21.75, due to some major post-earnings backlash. The stock was last seen 23.2% lower at $22.37 -- more than doubling its average post-earnings swing.

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The CBOE Volatility Index (VIX) is up 0.06 point, or 0.4%, at 15.57.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.16, with puts more than doubling calls. At last check, SPY was 0.6 point, or 0.3%, lower at $209.76.


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