The DJIA shed its early lead as traders step back after Friday's jobs rally
Despite an impressive rise in crude oil prices, the Dow Jones Industrial Average (DJIA) erased its early gains and fell into negative territory. Likewise, the S&P 500 Index (SPX) hit a fresh record intraday high and the Nasdaq Composite (COMP) touched an annual peak before also turning lower. September-dated crude futures have gained 2.9% to sit at $42.99 per barrel, amid reported talks of production cuts from some Organization of the Petroleum Exporting Countries (OPEC) members. With no economic reports due today, stocks are taking a step back after Friday's huge post-jobs-report rally, awaiting retail data later this week, as well as a heavy round of upcoming retailer earnings.
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Among the stocks with unusual options volume at midday is online discount specialist Groupon Inc (NASDAQ:GRPN), where puts are changing hands at seven times the typical intraday rate. Most active by a mile is the weekly 8/12 6-strike put, with nearly 5,600 contracts on the tape, many of which have been bought to open. Buyers of the puts are betting on GRPN to remain below the $6 level -- which the shares haven't toppled in more than a year -- by the close on Friday, when the weekly option expires. Today GRPN is up 1.6% at $5.78 -- and just off an annual high of $5.94 -- to extend its post-earnings gains.
Horizon Pharma PLC (NASDAQ:HZNP) is among the top performers on the Nasdaq today, adding 6.4% to $21.40 after its strong second-quarter earnings report, to the delight of a bullish options crowd. Today's rally has HZNP doing battle with its year-to-date breakeven mark, with the shares running out of steam around the $22 level.
Meanwhile, Denmark-based healthcare company Novo Nordisk A/S (ADR) (NYSE:NVO) is among the Nasdaq's worst performers, after a slew of brokerage firms cut their ratings and price targets on the stock. The company gave a disappointing full-year outlook last week, sending the shares plummeting below the $50 level for the first time since February. Today NVO is off a further 4.7% at $47.53.
The CBOE Volatility Index (VIX) is up 0.2 point, or 1.9%, at 11.61.
Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.99, with puts essentially doubling calls. SPY was last seen just below breakeven, at $218.10.
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