The DJIA is down at midday, as oil prices pan two-month lows
Despite a brief trek into positive territory at the open, the Dow Jones Industrial Average (DJIA) has spent the first half of the session lower -- down triple digits at one point. Stocks are reacting as oil prices drop to levels not seen since April, with September-dated crude futures down 0.2% at $43.06 per barrel. Additionally, traders are digesting mixed blue-chip earnings, with Dow stocks McDonald's Corporation (NYSE:MCD) and Caterpillar Inc. (NYSE:CAT) trading in different directions following their respective results.
On the economic front, Markit's flash purchasing managers index (PMI) for July fell to a five-month low, and the S&P/Case-Shiller home price index rose less than expected in May. However, new home sales rose to their highest rate since February 2008 in June, while consumer confidence was unchanged. Additionally, traders are keeping one eye trained on the Fed -- which kicked off its two-day policy-setting meeting today -- and on Apple Inc. (NASDAQ:AAPL), which will deliver its highly-anticipated earnings after the close.
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Among the stocks with unusual option volume is athletic apparel stock Under Armour Inc (NYSE:UA), with calls trading at eight times the usual intraday clip. UA's August 45 call is the most active option, where it seems safe to assume new positions are being purchased. UA was last seen down 4% at $41.86 on a negative earnings reaction.
Energy stock Clayton Williams Energy, Inc. (NYSE:CWEI) is among the best performers on the New York Stock Exchange today, after Seaport Global Securities resumed coverage with a "buy" rating and Northland Capital raised its price target to $30. CWEI is up 14.5% at $38.03. Longer term, the shares have enjoyed the support of their 50-day moving average since early April.
Tech stock Mobileye NV (NYSE:MBLY) is among the worst performers on the New York Stock Exchange today, down 7.1% at $45.81 after the company's earnings report. MBLY is currently on the short-sale restricted list, with options trading at nine times their usual intraday clip.
The CBOE Volatility Index (VIX) is up 0.6%, or 0.1 point, at 12.95.
Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.82, with puts almost doubling calls. SPY is down 0.1%, or 0.2 point, at $216.46.
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