BUY, SELL, HOLD (2)

Dow Jones Industrial Average Slumps on Oil, Fed Jitters

Is Amazon Headed for $1,000?

Sep 16, 2016 at 12:03 PM
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The Dow Jones Industrial Average (DJIA) has spent the morning in the red, dropping more than 120 points at its intraday low, but is still on pace for a weekly win. Weighing on stocks is a financial-sector swoon and the latest round of economic data, which included a bigger-than-expected jump in the consumer price index (CPI) for August. While an interest rate hike at next week's Fed policy meeting is still not expected, this new piece of inflation data has some traders on edge. Also pressuring stocks lower is a dip in oil prices. Growing global glut concerns saw October-dated crude oil dip below $43 per barrel for the first time in more than a month. Meanwhile, a 2.5% gain for Intel Corporation (NASDAQ:INTC) is helping the blue-chip index keep its losses in check.

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Midday Market Stats September 16

Dow component INTC is among the stocks with unusual options volume at midday. The equity has added 2.5% to $37.46 today, and earlier tapped a 15-year high of $38.05, making it the blue-chip index's top performer so far, after raising its quarterly revenue guidance. INTC puts are changing hands at six times the usual intraday rate, though calls still lead on an absolute basis. Most active so far is the weekly 9/23 37-strike put, where it appears speculators are purchasing new positions, anticipating a slip back below the strike price before next Friday's expiration.

Camera maker GoPro Inc (NASDAQ:GPRO) is among the Nasdaq's top performers at midday, adding 5.1% to $14.88 on an upbeat analyst note, as well as confirmation it will launch its Karma drone on Monday. The stock is still off more than 17% year-to-date, but a short-squeeze situation could easily push GPRO higher.

Banking concern Deutsche Bank AG (USA) (NYSE:DB) has shed 9.2% to $13.33, making it one of the biggest losers on the New York Stock Exchange so far, after the company revealed it has "no intent" to pay a $14 billion settlement to the U.S. Department of Justice. DB has been slumping on the charts for quite some time, shedding more than 50% year-over-year.

DB Daily Chart Sep 16

The CBOE Volatility Index (VIX) is down 0.1 point, or 0.8%, at 16.17.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.62, with puts heavily outnumbering calls. SPY was last seen off 1.1 points, or 0.5%, at $213.14.

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