Schaeffer's Top Stock Picks for '25

VIX Hits New Low as Dow Jones Industrial Average Churns

What the Eerily Quiet Dow Could Mean for Stocks

May 9, 2017 at 12:00 PM
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Stocks have remained in a narrow trading range today, with the Dow Jones Industrial Average (DJIA) exploring a 47-point span on both sides of breakeven so far. At last check, the Dow was modestly higher, while the S&P 500 Index (SPX) and Nasdaq Composite (COMP) were slightly higher after earlier hitting record intraday peaks. Along similar lines, the CBOE Volatility Index (VIX) is fresh off a new 10-year low -- and on track to notch another rare close in single-digit territory. Looking ahead, an afternoon speech from Boston Fed President Eric Rosengren could draw a crowd, while Dow stock Walt Disney Co (NYSE:DIS) is likely to garner some earnings-related attention after the close.

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

  • The telecom stock "going bankrupt," according to one top money manager.
  • What the eerily quiet Dow could mean for stocks.
  • Plus, options traders blast plunging Pandora; another big day for VRX stock; and Marriott's post-earnings high.
  • Schaeffer's Top 5 Trading Education Topics, Day 2: Don't chase the hype of the latest hot options trade, or you just might find yourself clobbered by the dreaded Volatility Crush.

stock market today

Among the names with accelerated options activity is streaming music service Pandora Media Inc (NYSE:P), with the contracts crossing at 24 times the average intraday pace. Put volume has already touched a 52-week peak, with 60,000 contracts on the tape -- nearly double the February high -- while call volume is on track to settle in the 100th annual percentile, with 53,000 contracts exchanged. With P stock down 8.8% at $9.48 amid an onslaught of headlines, Trade-Alert notes the possible closing of a bullish January 2018 10-12 risk reversal, while new positions are likely being purchased at the September 11 calls.

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is one of the biggest advancers on the New York Stock Exchange (NYSE) today, after the drugmaker turned in strong earnings and full-year guidance. At last check, VRX stock was up 20% to trade at $11.65 -- on track to close north of its 50-day moving average for the first time since late February.

vrx stock daily price chart may 9

Marriott International Inc (NASDAQ:MAR) is in the lead on the S&P 500 Index (SPX), following the hotelier's better-than-expected turn in the earnings confessional and subsequent round of bullish brokerage notes. MAR stock is trading up 6.5% at $102.66, after earlier topping out at a record high of $103.22.

 
 

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