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Dow Jones Industrial Average Turns Higher Ahead of Fed

3 Apple Suppliers On the Move; Plus, Will Facebook Go the Way of Twitter?

Apr 27, 2016 at 12:15 PM
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The Dow Jones Industrial Average (DJIA) was down more than 70 points at its session low, as Apple Inc.'s (NASDAQ:AAPL) post-earnings loss weighed on blue-chip stocks. However, while the tech-rich Nasdaq Composite (COMP) is still reeling after a round of disappointing earnings, the Dow has clawed its way higher - and back above 18,000 -- at midday, led by Boeing Co (NYSE:BA).

Oil prices have pulled back from a year-to-date high, after the Energy Information Administration (EIA) said U.S. oil stockpiles rose by a bigger-than-expected 2 million barrels last week. Still, June-dated crude was last spotted 0.5% higher at $44.26 per barrel. Traders continue to look ahead to this afternoon's statement from the Federal Open Market Committee (FOMC) meeting, which could shed light on the Fed's plan for interest rates through the rest of the year. 

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

Midday Market Stats April 27

Yahoo! Inc. (NASDAQ:YHOO) is among the stocks with unusual options volume at midday, with calls changing hands at twice their usual intraday rate, after the firm agreed to add four Starboard nominees to its board. In fact, call volume is on pace to end in the 98th percentile of its annual range, and the intraday put/call volume ratio of 0.17 is lower than 99% of the past year's readings. A significant portion of today's action stems from YHOO's June 43 call, which has seen nearly 22,000 contracts traded, including a block of 15,000, which may have been bought to open, according to Trade-Alert. In other words, the trader is anticipating a rally above $43 by the back-month option's expiration on Friday, June 17. YHOO was last seen 1% lower at $36.72.

Among the top performers on the Nasdaq today is cybersecurity stock Fortinet Inc (NASDAQ:FTNT), up 6.7% at $33.03 -- a year-to-date high -- after unveiling a strong first-quarter earnings report. Option bulls could be getting rewarded today as the shares bring their year-to-date lead to 6.1% and go head-to-head with their 160-day moving average -- a level they haven't topped since October.

Twitter Inc (TWTR), meanwhile, is one of the leading laggards on the Big Board, down 14.9% to $15.11 and marking its fifth consecutive post-earnings drop. The stock has given up more than one-third of its value in 2016, and 18 brokerage firms have already stepped in to lower their outlooks on the shares, which have been slumping under pressure from their 20-week moving average for the past year.

Twitter Chart April 27


The 
CBOE Volatility Index (VIX) has climbed 0.5 point, or 3.7%, to 14.47.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.22, with puts outnumbering calls. SPY was last seen down 0.3 point, or 0.2%, at $208.68.

Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap
 

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