Dow Jones Industrial Average Falls on Hawkish Fed Talk

FANG Stocks Bounce Back; Plus, Why Airlines Are Taking Flight

Nov 15, 2016 at 12:04 PM

The Dow Jones Industrial Average (DJIA) is on pace to snap its six-day win streak, and 10-year yields are also lower, as bonds edge cautiously higher after the recent sell-off. Retail sales and the Empire State manufacturing index both beat expectations, but traders are eyeing an oil-driven jump in import prices last month. Elsewhere, stocks are reacting to a speech by Boston Fed President Eric Rosengren, who said a December rate hike was likely, barring any "significant negative economic news" over the next month. Fed Vice Chair Stanley Fischer is also set to speak later today.

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

3 airlines getting a lift, thanks to Warren Buffett.
3 FANG stocks feeling the love from analysts.
Checking in on the CBOE Volatility Index (VIX), the SPDR S&P 500 ETF Trust (SPY), and other noteworthy stats at midday.
Plus... One airline soaring on sector tailwinds, and two biotech stocks having drastically different days.

MMC 161115

Among the stocks with unusual options volume at midday is airline JetBlue Airways Corporation (NASDAQ:JBLU), which is benefiting from sector-wide tailwinds after big investment news from Buffett. JBLU is currently trading up 2.8% at $20.27, with calls crossing the tape at 10 times their average intraday pace, and outnumbering puts by 18,000 to 281. If today's pace continues, JBLU could set a new 52-week high for option volume by the close.

Biotech Cellectar Biosciences Inc (NASDAQ:CLRB) is among the top performers on the Nasdaq today, currently up 25.3% at $2.33, after announcing a partnership with contract research firm INC Research Holdings Inc (NASDAQ:INCR) for studies of its myeloma and hematologic malignancy drug, CLR 131. CLRB has still given up two-thirds of its value since the beginning of 2016, but has more than doubled since touching an all-time low of $1 in May.

Biotech stock TESARO Inc (NASDAQ:TSRO) is among the worst performers on the Nasdaq today, trading 11.3% lower at $131.74, after pricing a public offering of 1.75 million shares of common stock at $135.00 -- a steep discount to Monday's close at $148.50. TSRO has gained over 150% since the beginning of 2016, and is now trading well above its supportive 50-day moving average.

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The CBOE Volatility Index (VIX) is down 4.5%, or 0.7 point, at $13.83.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.54, with puts narrowly leading calls. At last check, SPY was up 0.3%, or 0.7 point, at $217.32.

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