Dow Jones Industrial Average Rebounds With Oil; Fed in Focus

How VIX Responds to Volatile Oil Prices

Jan 27, 2016 at 12:15 PM
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The Dow Jones Industrial Average (DJIA) was down more than 175 points at its intraday low, but has clawed its way higher at midday. Boeing Co (NYSE:BA) and Apple Inc.'s (NASDAQ:AAPL) post-earnings woes are keeping the rebound in check, with the iPhone maker now off by nearly 6%. Meanwhile, crude futures have recovered their earlier losses, as March-dated oil is hovering just above $32 per barrel on reports of decreasing domestic production. Traders are now left to anticipate the latest Federal Open Market Committee (FOMC) statement, due out at 2 p.m. ET. 

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Among the stocks with unusual put activity today is construction concern Terex Corporation (NYSE:TEX). Though the shares are enjoying another M&A rally, up 8.4% at $22.22, puts are crossing at 13 times the expected midday pace. By far the most popular option is the February 15 put, where traders are likely buying to open positions either to bet on a quick TEX retreat, or to insure paper profits from their long stock positions

One of top winners on the Big Board is Chesapeake Energy Corporation (NYSE:CHK). The commodity stock is up 11.6% at $3.56 as oil prices stabilize. Of course, CHK's long-term performance on the charts still leaves much to be desired


Conversely, chipmaker Skyworks Solutions Inc (NASDAQ:SWKS) is near the bottom of the Nasdaq, as the shares are again hurt by AAPL's weakness. In addition, SWKS -- like this fellow Apple supplier -- is reeling from negative analyst attention, with Citigroup slicing its price-target to $78 from $98. Ahead of tomorrow's earnings report, SWKS is off 3.6% today at $63.40, putting it 28.4% below its December high of $88.52. 

The CBOE Volatility Index (VIX) is down 0.7 point, or 3.3%. 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.05, with puts slightly outpacing calls. The SPY is up 0.7 point, or 0.4%, at $190.93. 

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