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Dow Jones Industrial Average Cools Off; Healthcare, Crude Struggle

One Biotech's Epic 400% Breakout

Nov 19, 2015 at 12:17 PM
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The Dow Jones Industrial Average (DJIA) has traded in a relatively narrow range, and was last seen modestly lower, as Wall Street takes a breather after yesterday's Fed-induced flourish. Healthcare stocks are getting roughed up, with Dow component UnitedHealth Group Inc (NYSE:UNH) down nearly 5% on a cut to its full-year profit forecast. Also, crude is continuing its swoon, weekly jobless claims fell in line with estimates, and the Philadelphia Fed manufacturing survey unexpectedly rose in November -- its first monthly gain in three.

Elsewhere, traders are still seeking out signs of a December rate hike, with Atlanta Fed President Dennis Lockhart and Fed Vice Chair Stanley Fischer set to speak this afternoon. Meanwhile, in a CNBC interview earlier, Cleveland Fed President Loretta Mester said "things are on track" for a liftoff, even though policymakers aren't "boxed in" on a move. In Washington, D.C., the House of Representatives passed a bill to make the Fed more transparent, but the legislation -- condemned by Fed Chair Janet Yellen -- could get vetoed if it makes its way to the White House.

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

 


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Among the stocks with notable option volume is Salesforce.com, Inc. (NYSE:CRM), as the contracts are changing hands at six times the usual intraday rate. Digging deeper, short-term bulls may be buying to open the November 82 call, anticipating additional upside through tomorrow's close. At last check, CRM has surged 4.8% to trade at $81.02 -- and just touched a record high of $82.90 -- on strong quarterly results and a subsequent raft of price-target hikes.

Among the notable losers on the Big Board is electronics retailer Best Buy Co Inc (NYSE:BBY), down 4.8% at $29.83. The stock is taking it on the chin, after the company reported lackluster quarterly sales and offered up a weak forecast for the holiday season.

One of the biggest gainers on the Nasdaq is China-based travel site Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), last seen 19% higher at $113.15, and fresh off an all-time peak of $114.45. Lifting the stock were upbeat quarterly sales and current-quarter guidance, as well as a round of bullish brokerage notes.

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The CBOE Volatility Index (VIX) is up 0.1 point, or 0.8%, at 16.98.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.54, with puts outnumbering calls. At last check, SPY is off 0.4 point, or 0.2%, at $208.35.

 

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