Dow Jones Industrial Average Rebounds With Deutsche Bank

2 Commodity Stocks to Avoid In the Fourth Quarter

by Josh Selway

Published on Sep 30, 2016 at 12:15 PM

The Dow Jones Industrial Average (DJIA) is rallying at midday, as a dramatic comeback from banking giant Deutsche Bank AG (USA) (NYSE:DB) sparks confidence across Wall Street. Just a day after suffering a sell-off that sank stocks around the globe, shares of DB are on pace for their best close in over a week, following upbeat comments from the company's CEO and reports the firm is nearing a $5.4 billion settlement with the U.S. Traders are also digesting an August uptick in the Fed-watched core personal consumption expenditures (PCE) index, as well as a rise in consumer sentiment in September. As such, the DJIA and its index peers are eyeing a third straight weekly win, and are set to wrap up the quarter comfortably higher.

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

Midday Market Stats September 30

Among the stocks with unusual option volume is semiconductor stock NVIDIA Corporation (NASDAQ:NVDA), as M&A-related tailwinds lift chipmakers. NVDA is up 2.3% today at $68.96. and earlier tagged another record high of $69.06. In the meantime, calls are trading at twice the expected midday rate. The most popular option overall is the weekly 9/30 68-strike call, as bulls take action before the options expire at today's close. The October 70 call is also popular, with traders likely betting on higher highs ahead for NVDA shares.

Retail stock Costco Wholesale Corporation (NASDAQ:COST) is outperforming today on the Nasdaq, up 4.3% at $153.87, thanks to the company's strong quarterly report. Still, COST's 12-month high of $169.73 represents a 10.3% premium to current levels, and sentiment among option traders has remained pessimistic. 

One stock struggling on the Nasdaq is casino name Wynn Resorts, Limited (NASDAQ:WYNN) -- which has actually been one of the year's top performers -- after the company's president resigned. For instance, even with today's 3.1% slide to $97.50, WYNN boasts a year-to-date return of nearly 41%, knocking out a series of higher highs in the process. Plus, today's pullback stopped short right near the stock's rising 160-day moving average, a trendline that sent WYNN rallying to its annual highs earlier this month

Daily Chart of WYNN September 30

The CBOE Volatility Index (VIX) has given back 1.1 point, or 7.6%, at 12.95. 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.60, as puts outpace calls yet again. The SPY was last seen 1.9 point, or 0.9%, higher at $216.51. 

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