Boeing, Disney Down Dow Jones Industrial Average

The Biotech Stock Up 71%

by Josh Selway

Published on May 31, 2016 at 12:15 PM
Updated on May 31, 2016 at 12:22 PM

The Dow Jones Industrial Average (DJIA) has given up its early lead and then some, dragged lower by Boeing Co (NYSE:BA) and Walt Disney Co (NYSE:DIS) -- and could be at risk of snapping its monthly winning streak. Stocks are reacting to a fresh batch of economic data ahead of Friday's nonfarm payrolls report -- and two crucial Fed events. Specifically, consumer confidence fell in April, despite a major uptick in consumer spending. Elsewhere, the Chicago purchasing managers index (PMI) and Dallas Fed manufacturing survey both shrank in May, while the S&P/Case-Shiller home price index jumped in March. 

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

Midday Market Stats May 31

Among the stocks with unusual options volume is mining stock Cliffs Natural Resources Inc (NYSE:CLF), following J.P Morgan Securities' bullish note and news of a long-term agreement with ArcelorMittal SA (ADR) (NYSE:MT). CLF calls are trading at five times the expected intraday volume. The weekly 6/3 4-, 4.50-, and 5-strike calls are among the most popular options today. Assuming new positions are being purchased here, traders are betting on CLF  to extend today's rally beyond the strikes before the options expire at the end of this week. CLF was last seen 34.9% higher at $4.14.

Micron Technology, Inc. (NASDAQ:MU) is near the top of the Nasdaq today, gaining 2.1% at $12.57. Guiding the semiconductor stock higher is an upgrade to "outperform" at Baird, which also raised its price target to $18 from $12. This is nothing new from the stock, which has been red-hot of late, adding 34% since its bottom of $9.35 earlier this month. 

Daily Chart of MU May 31

Meanwhile, sector peer Applied Materials, Inc. (NASDAQ:AMAT) is among the biggest Nasdaq losers today, as the stock cools off after hitting annual highs last week. AMAT was last seen 1% lower at $24.19, but considering the stock's 14-day Relative Strength Index (RSI) closed Friday at 83 -- well into overbought territory -- this technical retreat isn't all that surprising. 

The CBOE Volatility Index (VIX) is up 1.4 point, or 10.9%, at 14.55. 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.24, with puts more than doubling calls. SPY was last seen 0.5 point, or 0.3%, lower at $209.72. 

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