Dow Jones Industrial Average Struggles; Nasdaq Outperforms

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

by Josh Selway

Published on Aug 19, 2016 at 12:08 PM

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


A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.
Google Postpones Android Reveal, "Now is Not the Time to Celebrate"
"Now is not the time to celebrate," Google said in a message on its website
ZNGA Zooms to 8-Year High on Billion-Dollar Deal
ZNGA is planning to buy Peak for $1.8 billion
Huge New Legal Marijuana Market Has Shortage Crisis
250 million Europeans have access to medical marijuana. There's already a shortage....