Dow Jones Industrial Average Waffles After BoE Rate Cut

Bill Ackman Is Officially Out of This Investment

Aug 4, 2016 at 12:18 PM
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The Dow Jones Industrial Average (DJIA) has spanned a 70-point range on both sides of breakeven today. The index initially jumped on news that the Bank of England (BoE) cut interest rates for the first time since 2009, but quickly fell after a larger-than-expected decline in June factory orders and a rise in weekly jobless claims. While some traders are hitting the exits ahead of tomorrow's highly anticipated nonfarm payrolls report, rebounding oil prices are helping stocks stick to the flat line, with September-dated crude futures up 1.1% at $41.29 per barrel. 

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Midday mkt chart 080416

Among the stocks with unusual option volume is solar energy stock First Solar, Inc. (NASDAQ:FSLR), with options trading at six times their usual intraday clip. After lackluster earnings and a barrage of bearish brokerage notes, FSLR is currently on the short-sale restricted list, and its weekly 8/5 options account for the top five most active so far. FSLR was last seen down 10.3% at $44.17.

Semiconductor stock Magnachip Semiconductor Corp (NYSE:MX) is among the best performers on the New York Stock Exchange today, after delivering an earnings beat last night. MX has enjoyed the support of its 100-day moving average since late February, and is now in territory not charted since October 2015. MX was last seen up 18.4% at $7.27.

MX 100 day

Tech stock Inovalon Holdings Inc (NASDAQ:INOV) is among the worst performers on the Nasdaq today, currently down 23.5% at $14.75, after reporting earnings last night. The stock was also a besieged with bearish brokerage notes, and just touched a record low of $14.50.

The CBOE Volatility Index (VIX) is down 5.2%, or  0.7 point, at 12.19.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.44, with puts leading calls. SPY is up 0.1%, or 0.2 point, at $216.36.

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