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Dow Jones Industrial Average Bounces Sharply on GDP, Oil

Bulls Shouldn't Sleep On This Rare S&P Signal

Jun 28, 2016 at 11:55 AM
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The Dow Jones Industrial Average (DJIA) surged more than 200 points at the open, and while it's since given up a portion of those gains, the Dow remains up triple digits -- and is back atop its 200-day moving average. The snap-back session is being fueled by better-than-expected gross domestic product (GDP) data and consumer confidence numbers, as well as a rise in oil prices, which has sent energy stocks sharply higher. At last check, August-dated crude futures are up 1.7% at $47.15 per barrel, amid a potential strike in Norway.

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

midday market stats june 28

Among the stocks with unusual call activity is heavy machinery maker Meritor Inc (NYSE:MTOR), with the contracts running at 14 times the usual intraday rate -- though the stock remains lightly traded, on an absolute basis. The shares have dropped 6.9% at $6.64 on a price-target cut to $8 at Goldman Sachs, but options traders seemingly expect a bounce, buying to open the now out-of-the-money August 7 call.

Among the noteworthy gainers on the New York Stock Exchange is Dick's Sporting Goods Inc (NYSE:DKS), up 3.3% at $41.38. The shares are benefiting from Goldman Sachs' decision to add the retail stock to its "Americas Conviction Buy" list.

DKS daily chart

Among the top gainers on the Nasdaq is Horizon Pharma PLC (NASDAQ:HZNP), amid reports of a potential stake sale. At last check, the biotech stock has surged 2.9% to hover near $15.47.
      
The CBOE Volatility Index (VIX) has dropped 3.7 points, or 15.6%, at 20.12.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.42, with puts outpacing calls. At last check, SPY is up 2.1 points, or 1.1%, at $201.70.

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

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