Dow Jones Industrial Average Drops Triple Digits as Earnings Kickoff Disappoints

The Takeover Target Getting Pummeled by Option Bears

Oct 11, 2016 at 12:03 PM
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The Dow Jones Industrial Average (DJIA) is slumping today, shedding triple digits as oil prices retreat from Monday's highs. Currently, November crude futures are off 1.5% at $50.58 per barrel. Also weighing on stocks is a disappointing start to third-quarter earnings season, with aluminum producer Alcoa Inc (NYSE:AA) plummeting more than 10% after a profit miss. Against this backdrop, energy and commodity stocks are among the top decliners as we head into the second half of the trading day.

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

Midday Market Stats October 11

Among the stocks with unusual options volume at midday is genetic analysis specialist Horizon Pharma PLC (NASDAQ:HZNP). The stock has shed 4.7% to $18.60 today on discouraging full-year sales guidance, inspiring a rush of bearish betting in the options pits. At last check, HZNP puts were trading at five times the average intraday rate -- though option volume is still very light on the stock on an absolute basis, with only 1,147 puts and 833 calls exchanged so far.

Apple Inc. (NASDAQ:AAPL) is among the top performers on the Nasdaq today, profiting off major losses for competitor Samsung. Its competitor's Galaxy Note 7 woes have boosted AAPL stock 1.5% to $117.76 -- fresh off a new 2016 high of $118.69.

AAPL Daily Chart Oct 11

Among the worst performers on the Nasdaq, meanwhile, is Illumina, Inc. (NASDAQ:ILMN). The stock is off 25.7% at $137.27 after the company gave a disappointing third-quarter forecast, leading two brokerage firms to lower their outlooks on the shares.

The CBOE Volatility Index (VIX) has added 2.1 points, or 15.5%, at 15.45

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.09, with puts more than doubling calls. SPY was last seen down 2 points, or 0.9%, at $214.15.

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