Oil Opens Bullish Floodgates for Dow Jones Industrial Average

The Tech Stock at Record Highs

May 25, 2016 at 12:05 PM
facebook twitter linkedin

The Dow Jones Industrial Average (DJIA) is up triple digits at midday -- and hovering near its intraday highs -- as crude futures soar to levels not seen in seven months. At last check, July-dated oil prices were up 0.5% at $48.87 per barrel, after the Energy Information Administration (EIA) said domestic crude supplies dropped 4.2 million barrels last week. Stocks are also reacting to another big rally in bank shares -- with financial firm Goldman Sachs Group Inc (NYSE:GS) outperforming its fellow Dow components -- as rate-hike chatter swirls ahead of Friday's highly anticipated speech from Fed Chair Janet Yellen.

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

Midday Market Stats May 25

Among the stocks with unusual options volume is Hewlett Packard Enterprise Co (NYSE:HPE), with the contracts crossing at seven times the average intraday pace. The tech stock is up 9.5% at $17.79, after its new venture was met with applause from analysts. Options traders, meanwhile, appear to be selling to close their now in-the-money June 17 calls, according to data from the International Securities Exchange (ISE).

Energy stock Bonanza Creek Energy Inc (NYSE:BCEI) is one of the biggest gainers on the New York Stock Exchange (NYSE). The stock tumbled out of the gate after receiving a pair of negative analyst notes, but has swung 26.4% higher to $2.60, as oil prices surge.

BCEI 10Minute Chart

Express, Inc. (NYSE:EXPR) is one of the biggest decliners on the NYSE, down 11.2% at $14.23 -- and fresh off an annual low of $13.25 -- and on track for its biggest intraday percentage decline since December 2013. To the assumed delight of short sellers, the retailer reported a first-quarter earnings miss and offered up uninspiring guidance.

The CBOE Volatility Index (VIX) is down 0.6 point, or 3.9%, at 13.86.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 0.93, with calls having the rare edge over puts. SPY is up 1.5 points, or 0.7%, at $209.35.

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

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners