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Dow Jones Industrial Average Up Triple Digits; Energy, Bank Stocks Soar

A Golden Opportunity for Contrarian Option Bulls

Oct 5, 2016 at 12:09 PM
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The Dow Jones Industrial Average (DJIA) is up triple digits, as stocks react to rising oil prices. Crude futures for November were last spotted 2.2% higher at $49.78 per barrel -- nearing a three-month high and the round $50 mark -- after the Energy Information Administration (EIA) reported a fifth consecutive weekly drop in U.S. stockpiles. Also contributing to gains is the Institute for Supply Management's (ISM) stronger-than-expected non-manufacturing index for September, which offset weaker-than-anticipated jobs data. Additionally, bank stocks are rallying, as interest-rate chatter swirls. After taking a hawkish stance earlier this week, Richmond Fed President Jeffrey Lacker will head back to the podium this afternoon.

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

Midday Market Stats October 5

Among the stocks with unusual options volume at midday is chipmaker Micron Technology, Inc. (NASDAQ:MU). Earnings and upbeat analyst attention have the shares up 1.5% at $18.08. MU calls, meanwhile, are flying across the tape at eight times the usual intraday pace. In fact, with more than 152,000 calls traded already, call volume is on track to tap a new annual high before the day is out. Dominating today's action are the October and December 20 calls, where it appears one trader rolled her long front-month options out.

Oil-and-gas stock Resolute Energy Corp (NYSE:REN) is one of top performers on the New York Stock Exchange so far today. The shares have added 15.5% to $29.66 -- and earlier hit a fresh two-year high of $30.70 -- after a property acquisition sparked a round of bullish brokerage notes. REN has been charging up charts, adding roughly 900% over the past three months.

REN Daily Chart Oct 5

Among the worst performers on the Big Board, meanwhile, is tech stock Gigamon Inc (NYSE:GIMO). The shares have shed 5.4% to $52.16 following two analyst downgrades, but still sit on a hefty 96% year-to-date lead after tapping an all-time high of $56.38 just last week.

The CBOE Volatility Index (VIX) has given back 0.7 point, or 5.3%, at 12.91. 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.60, with puts comfortable outnumbering calls. SPY was last seen up 1.1 points, or 0.5%, at $215.74.

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

 

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