Dow Jones Industrial Average Lower as Tech Earnings Miss

The Semiconductor Stock Surging 35%

by Karee Venema

Published on Apr 22, 2016 at 12:05 PM
Updated on Apr 22, 2016 at 12:07 PM

The Dow Jones Industrial Average (DJIA) is trading lower for a second straight day, following the latest batch of blue-chip earnings. In fact, dismal earnings reactions for tech stocks Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc (NASDAQ:GOOGL) have the Nasdaq Composite (COMP) vastly underperforming its peers, and sinking into the red on a weekly basis. Only exacerbating today's risk-off backdrop -- and overshadowing bouncing oil prices, with June-dated crude futures 1.7% higher at $43.92 per barrel -- is Markit's flash purchasing managers index (PMI) for April, which fell to a six-year low, as well as a strengthening U.S. dollar, which is up against the euro and the yen.

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Midday Market Check April 22 

Among the stocks with unusual put volume is Freeport-McMoRan Inc (NYSE:FCX), with the contracts trading at five times the average intraday pace. The mining stock is up 2% at $11.75 -- and on track for a big weekly win of more than 8% -- but one options trader is getting nervous ahead of next week's earnings report. Specifically, it looks like a big block of 44,578 June 11 puts was bought to open for $1.10 apiece, or roughly $4.9 million.

Neothetics Inc (NASDAQ:NEOT) is one of the biggest percentage gainers on the Nasdaq, up 41.5% at $1.05. Helping boost the clinical-stage pharmaceutical firm is an amended credit agreement, but the stock still remains 93% below its Aug. 4 record peak of $15.05.

Hawaiian Holdings, Inc. (NASDAQ:HA) is one of the biggest percentage decliners on the Nasdaq, off 11.1% at $44.15. The regional airline's better-than-expected first-quarter earnings was met with a price-target hike to $48 from $36 at Cowen, yet the shares are on track to log their lowest weekly close since late February.

HA weekly chart April 22

The CBOE Volatility Index (VIX) is down 0.1 point, or 0.9%, at 13.82.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.26, with puts having the edge over calls. SPY is down 0.5 point, or 0.3%, at $208.43.

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