Oil, ISM Miss Send Dow Jones Industrial Average Sliding

The Decision Apple's CEO Called 'Total Political Crap'

Sep 1, 2016 at 11:59 AM
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After starting the day on a positive note, the Dow Jones Industrial Average (DJIA) has fallen sharply, giving up more than 100 points at its intraday low. Stocks have slumped as traders digest a disappointing round of economic data, including an Institute for Supply Management (ISM) manufacturing index reading of 49.4 -- falling into contraction territory, and hitting its lowest level since January. Still, weekly jobless claims were slightly better than predicted, giving some hope ahead of Friday's all-important nonfarm payrolls report.

Meanwhile, energy stocks are getting hammered as oil prices continue to slide on global oversupply concerns. At last check, crude oil for October delivery is off 2.5% at $43.58 per barrel -- its lowest intraday level in nearly three weeks.

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

Midday Market Stats September 1

Among the stocks with unusual options volume at midday is Mondelez International Inc (NASDAQ:MDLZ), which is trading 2.2% lower at $44.02 today, slipping for the first time since announcing earlier this week the company will end its pursuit of Hershey Co (NYSE:HSY). MDLZ calls are crossing the tape at three times their usual intraday rate, outpacing puts 3-to-1. Most active thus far is the out-of-the-money December 55 call, where it looks like speculators are purchasing new positions. With short interest accounting for less than 1% of MDLZ's total float, it's reasonable to believe these are true bulls, expecting the stock to rally through the $55 level -- in record-high territory -- before the option's expiration, on Friday, December 16.

Ciena Corporation (NYSE:CIEN) is among the top performers on the New York Stock Exchange today, adding 5.8% to $22.70 after reporting better-than-expected quarterly earnings. The shares have been hitting a series of higher lows since tapping an annual low in mid-May, and currently sit on a nearly 10% year-to-date lead.

Among the biggest losers on the Big Board, meanwhile, is salesforce.com, inc. (NYSE:CRM), which earned a round of price-target cuts from analysts after its earnings beat was overshadowed by a downbeat sales outlook. The shares are off 6.3% at $74.44, breaking below the $76 level, and on pace for their lowest close since May.

CRM Daily Chart Sep 1

The CBOE Volatility Index (VIX) has added 0.8 point, or 6.3%, at 14.26.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 0.62, with calls easily outnumbering puts. SPY was last spotted down 1.2 points, or 0.5%, at $216.29.

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


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