Dow Jones Industrial Average Struggles; Nasdaq Outperforms

Goldman Warns of 'Clouds On the Horizon' for This Sector

Aug 19, 2016 at 12:08 PM
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The Dow Jones Industrial Average (DJIA) was down more than 100 points at its session low, but has pared its deficit at midday, thanks to a big day for blue-chip stock Nike Inc (NYSE:NKE). Fed chatter is lingering still, with many traders setting their sights on next week's speech from Fed Chair Janet Yellen. Oil prices are also in focus, with September-dated crude futures last seen 0.2% lower at $48.11 per barrel, after six straight up days. Elsewhere, the Nasdaq Composite (COMP) is outperforming its peers, eking higher on the heels of standout earnings from Applied Materials, Inc. (NASDAQ:AMAT).

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

Midday Market Stats August 19

Among the stocks with unusual options volume today is home furnishings retailer Restoration Hardware Holdings Inc (NYSE:RH). A bullish note from Goldman Sachs has the stock up 7.6% at $33.12, with calls trading at 10 times the average intraday volume. The September 35 call has seen the most action by far, as it seems traders are betting on extended gains from RH in the weeks ahead. 

One of the top gainers on the New York Stock Exchange is blue chip NKE. The stock is up 2.9% at $58.86, on news the company has agreed to an apparel manufacturing partnership with Apollo Global Management LLC (NYSE:APO). NKE is still down 5.8% in 2016, but has historically outperformed in the third quarter.

Another gainer on the Big Board is The GEO Group Inc (NYSE:GEO), as the shares bounce back following yesterday's huge sell-off. The stock is up 14.3% at $22.30, thanks to news of a contract renewal and a round of reassuring analyst attention. GEO is still far removed from its year-to-date breakeven mark of $28.91, however. 
 

Daily Chart of GEO August 19

The CBOE Volatility Index (VIX) is up just 0.04 point, or 0.4%, at 11.47. 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.03, as puts and calls trade in near parity. The SPY is 0.4 point, or 0.2%, lower today at $218.45. 

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

 

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