Dow Jones Industrial Average Rallies as Rate-Hike Jitters Subside

The Bank Stock to Own in September

Sep 2, 2016 at 12:09 PM
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The Dow Jones Industrial Average (DJIA) started this morning strong, adding more than 100 points at its session peak, after today's nonfarm payrolls report showed fewer jobs than expected added in August -- suggesting lower odds of an interest rate hike when the Federal Open Market Committee (FOMC) meets later this month. Also boosting stocks today is a rebound in oil prices after four days of declines. A weaker dollar and production freeze comments out of Russia have helped crude oil for October add 3% to $44.45 per barrel.

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

  • 2 gold stocks popping on today's jobs report.
  • This blue chip has been one of the best bank stocks to own in September.
  • Plus ... Checking in on the CBOE Volatility Index (VIX), the SPDR S&P 500 ETF Trust (SPY), and other noteworthy stats at midday.

Midday Market Stats September 2

After last night announcing the resignation of its chief technology officer, Marvell Technology Group Ltd. (NASDAQ:MRVL) is among the stocks with unusual options volume at midday. The shares are flat at $12.87 after snagging a new annual high of $13.06 this morning, bringing their year-to-date gains to nearly 46% ahead of the company’s quarterly earnings report, due next Tuesday. At last check MRVL puts are trading at a whopping 16 times the average intraday rate, taking a rare lead over calls. With more than 4,500 contracts on the tape, put volume is currently running in the 99th percentile of its 12-month range. Most active so far are the September 12.50 and October 13 puts, where it looks like traders may be purchasing new positions, betting the shares will slide through the options' respective expiration dates.

Among the biggest gainers on the Nasdaq today is Activision Blizzard, Inc.(NASDAQ:ATVI), up 2.1% at $42.04, after hitting a new record high of $43.10 earlier, as the "Call of Duty XP" fan event kicks off today in Los Angeles. The shares have been on a tear since February, with the 80-day moving average limiting minor pullbacks as ATVI rockets higher.

ATVI Daily Chart Sep 2

Electronic payment specialist VeriFone Systems Inc (NYSE:PAY) is among the worst performers on the New York Stock Exchange, dropping 18.5% to $16.38 and tapping a three-year low of $16.07, after the company's disappointing full-year outlook was met with a slew of bearish brokerage attention. So far this looks like a repeat performance of PAY's last post-earnings session, and the stock has now given up nearly half of its value year-over-year.

CBOE Volatility Index (VIX) is down 1.1 points, or 7.8%, at 12.43.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.48, with puts comfortable outpacing calls. SPY was last seen up 1.1 points, or 0.5%, at $218.44.

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



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