Dow Jones Industrial Average Down 201 After Payrolls

Why These 3 Stocks Are Imploding

Feb 5, 2016 at 12:02 PM
facebook twitter linkedin


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:

 

160205mmc


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.

160205lite

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.
 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1