Dow Jones Industrial Average Down 99 Points; S&P Back in Correction

2 High-Flying Energy Stocks

Feb 24, 2016 at 12:10 PM
facebook twitter linkedin

It's a dismal day on Wall Street, with oil prices continuing to drive the direction of the stock market. In fact, despite a brief bounce following the Energy Information Administration's (EIA) report that showed a smaller-than-expected rise in crude inventories, April-dated crude futures have dropped 0.4% to $31.74 per barrel.

Traders are also digesting the latest Fed chatter, as well as a round of disappointing economic data. Specifically, Markit's flash services index fell below the 50 mark -- indicating contraction -- to a 28-month low, while January new home sales dropped by more than expected. Against this backdrop, the Dow Jones Industrial Average (DJIA) is down nearly triple digits, while the S&P 500 Index (SPX) has slipped back into correction territory.

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


Among the stocks with unusual call volume is Barrick Gold Corporation (USA) (NYSE:ABX), with the contracts crossing at seven times the average intraday pace. The gold stock is continuing yesterday's analyst-induced rally -- up 5.5% at $14.29 -- thanks to a rebound in gold, and after TD Securities boosted its price target to $15.50 from $14.50. In the options pits, the security's January 2017 series is hot, with nearly 59,000 contracts collectively traded at the 20-, 22-, and 25-strike calls.

Hertz Global Holdings Inc (NYSE:HTZ) is one of the leading laggards on the New York Stock Exchange (NYSE), down 16.4% at $7.22. A disappointing outlook for Avis Budget Group Inc. (NASDAQ:CAR) is having a ripple effect throughout the sector, and, as a result, HTZ has lost a short-term foothold atop its 10-day moving average.


Chemical concern -- and Dupont (NYSE:DD) spinoff -- Chemours Co (NYSE:CC), meanwhile, is one of the biggest advancers on the NYSE, up 20.3% to $4.87. After reporting a big fourth-quarter loss, the company said it expects to finish its strategic review this summer (subscription required) -- and lower costs by roughly $500 million by the end of 2017.

The CBOE Volatility Index (VIX) is up 0.6 point, or 3%, at 21.61. 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.06, with puts more than doubling calls. SPY is down 0.5% at $191.32.

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! 



Special Offers from Schaeffer's Trading Partners