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Dow Jones Industrial Average Down 201 After Payrolls

Why These 3 Stocks Are Imploding

Feb 5, 2016 at 12:02 PM
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While this morning's nonfarm payrolls report was mixed, the Dow Jones Industrial Average (DJIA) has taken a decidedly bearish turn, down triple digits at midday. While the U.S. added fewer-than-expected jobs in January, a dip in the unemployment rate (to levels not seen since 2008) and a jump in hourly wages sparked worries that the Fed may again raise interest rates. Elsewhere, traders are weighing a slight bounce in crude oil -- with March-dated futures last seen 0.4% higher at $31.86 per barrel -- against a generally downbeat day of earnings.

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

 

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Among the stocks with unusual option volume is software concern Splunk Inc (NASDAQ:SPLK), with the contracts crossing at 18 times the usual intraday pace. The most active option is the weekly 3/4 35-strike put, which is seeing considerable buy-to-open activity. At last check, SPLK is down over 28% at $33.80, fresh off a nearly three-year low of $33.70, and on the short-sale restricted list, after a price-target cut to $67 from $82 at Pacific Crest, which warned of "sharper deceleration in growth rates" among "high-growth technology companies."

One of the top stocks on the Nasdaq today is optics expert Lumentum Holdings Inc (NASDAQ:LITE), up 9.7% at $24.36. Adding fuel to the shares' fire are upbeat earnings and guidance, as well as a raft of bullish analyst attention.

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Among the top performers on the Big Board is chicken producer Tyson Foods, Inc. (NYSE:TSN), which is fresh off a record high in the wake of upwardly revised guidance. At last check, the stock has surged 11.8% to trade at $58.07, after earlier topping out at $58.95.

The CBOE Volatility Index (VIX) is up 1.4 points, or 6.4%, at 23.24.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.41, with puts handily outpacing calls. At last check, SPY has surrendered 2.7 points, or 1.4%, at $188.90.
 

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