Post-Jobs Fed Talk Sends Dow Jones Industrial Average Down Triple Digits

Why Gold Bugs Are Blitzing This ETF

by Kirra Fedyszyn

Published on Oct 7, 2016 at 12:10 PM

The Dow Jones Industrial Average (DJIA) jumped at the open, but has been tracking a path steadily lower since. Stocks are reacting to this morning's lower-than-expected September jobs report, which has nonetheless sparked a round of hawkish Fed speak. Specifically, Federal Reserve Vice Chair Stanley Fischer noted today's jobs data was near a "Goldilocks" level, and that "we're close to full employment." This sentiment was echoed earlier by Cleveland Federal Reserve President Loretta Mester, who also said the Fed should be "forward-looking," and that "it makes sense to move up the rate another 25 basis points." With a December rate hike still on the table, the Dow is wallowing in red ink.

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

Midday Market Stats October 7

Among the stocks with unusual options volume at midday is bank stock CIT Group Inc. (NYSE:CIT). The shares are up 2.1% at $37.15 after the firm announced a $10 billion deal to sell its aircraft leasing business, and CIT calls are trading at 15 times the average intraday volume -- with nearly 14,000 calls on the tape so far. Plus, call volume is running in the 100th annual percentile of its intraday range. Most active is the January 2017 35-strike call, where it looks like traders may be selling to close their in-the-money positions.

Gap Inc (NYSE:GPS) is among the top performers on the New York Stock Exchange, adding 14% to $25.97 after the retailer reported a slimmer-than-expected drop in same-store sales for September. GPS received a round of bullish brokerage attention, too, and is now in positive year-to-date territory.

Among the worst performers on the Big Board, meanwhile, is Honeywell International Inc. (NYSE:HON), slipping 7.8% to $106.55 after the aircraft maker downwardly revised its full-year forecast. HON is now on track for its lowest daily finish in seven months, and ready to close below its 50-week moving average for the first time since early February.

HON Daily Chart Oct 7

The CBOE Volatility Index (VIX) is up 1.2 points, or 9%, at 14.00. 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.93 with puts nearly doubling calls. SPY was last seen down 1.2 points, or 0.6%, at $214.58.

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