VIX Ends Higher Again After Choppy Trading for Stocks

A weakening dollar sent gold futures higher for today's session

Managing Editor
Oct 9, 2018 at 4:33 PM
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The U.S. stock market struggled for direction in today's trading, with all three major indexes flipping between positive and negative territory. Worries over rising bond yields drove early losses, while investors also digested the unexpected news that U.S. Ambassador to the United Nations Nikki Haley will be leaving her post at the end of this year. While major equity benchmarks ended the session little changed, today's volatile trading sent the VIX to its fourth straight daily gain, marking its lengthiest string of positive sessions in a month.

Continue reading for more on today's market, including:

  • Perrigo's CEO shake-up rattled the stock. 
  • The biotech stock sending up a buy signal
  • Traders bid up eBay options ahead of earnings.
  • Plus, put traders pounce on a faltering FAANG; the airline stock hitting turbulence; and why we're bullish on CROX.

The Dow Jones Industrial Average (DJI - 26,430.57) shed 56.2points, or 0.2%, for the day. Walmart (WMT) led the 13 blue-chip winners with a 2.5% gain, while DowDuPont (DWDP) paced the 17 decliners with a 3.7% loss.

The S&P 500 Index (SPX - 2,880.34) shed 4.1 points, or 0.1%, while the Nasdaq Composite (IXIC - 7,738.02) added 2.1 points, or 0.03%.

Meanwhile, the Cboe Volatility Index (VIX - 15.95) gained 0.3 point, or 1.7%, to settle at its highest level since June 28.

closing indexes summary oct9

NYSE and Nasdaw stats oct 9

5 Items on our Radar Today

  1. The Canadian division of Walmart stated it has been exploring the option to join the cannabis craze as legalization looms north of the border. Spokesperson Diane Medeiros said Walmart Canada has "done some preliminary fact-finding on this issue, but do not have plans to carry CBD products at this time." (CNBC)
  2. Activist investor Bill Ackman said his Pershing Square Capital fund has taken a $900 million stake in Starbucks. Starbucks shares were up nearly 5.6% at their intraday peak. (Bloomberg)
  3.  Put traders pounce on a struggling FAANG stock.
  4. American Airlines stock hit a new annual low after its revenue update.
  5. The bullish case behind our Crocs call trade.

Corporate Earnings October 9

Unusual Options Activity October 9

Data courtesy of Trade-Alert

Oil, Gold Rebound on Output Woes, Haley Exit

Worries over a dip in oil exports out of Iran and potential damage from Hurricane Michael sent crude futures higher in today's trading. November-dated oil added 67 cents, or 0.9%, to settle at $74.96 per barrel.

Reports of friction between U.S. Secretary of State Mike Pompeo and Chinese Foreign Minister Wang Yi, coupled with news of Haley's departure, sent the dollar slightly lower and gold futures higher for the day. December-dated gold picked up $2.90, or 0.2%, to close at $1,191.50 per ounce. 

 

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