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Dow Jones Industrial Average Holds On to Lead as Fed Officials Talk Rate Hike

Is the Market on the Brink of a Bubble?

Oct 9, 2015 at 12:04 PM
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Despite earnings season starting off on the wrong foot, the Dow Jones Industrial Average (DJIA) has spent almost the entire morning in the black and remains on track for a sixth straight win. The Fed's dovish September meeting minutes continue to be the primary driver, both at home and abroad, though Atlanta Fed President Dennis Lockhart said this morning he still expects a rate hike in 2015 -- a sentiment echoed by New York Fed President William Dudley just minutes ago. On the data front, import prices fell less than expected, while export prices suffered a steeper-than-forecast drop. Lastly, crude oil's week-long rally is cooling off, while gold prices have spiked to a three-week peak.

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

 

  • Schaeffer's contributor Adam Warner tackles the question we all want answered: Are we on the brink of a bubble?
  • Tesla Motors Inc (NASDAQ:TSLA) is once again taking it on the chin, amid more bearish brokerage attention and some smack talk from Elon Musk.
  • Plus ... Checking in on the CBOE Volatility Index (VIX), the SPDR S&P 500 ETF Trust (SPY), and other noteworthy stats at midday.

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Among the stocks with notable put volume is aluminum giant Alcoa Inc (NYSE:AA), which is coming off an earnings miss. The contracts are running at nine times the usual intraday rate, with buy-to-close activity transpiring at the October 10.50 and December 10 strikes, according to the International Securities Exchange (ISE). AA shares are down 4.6% at $10.51, which could be a bad omen, moving forward. 

One of the worst-performing stocks on the Big Board is Gap Inc (NYSE:GPS), after the retailer announced disappointing same-store sales and subsequently received a raft of negative analyst attention. At last check, GPS was 6.5% lower at $27.07, and fresh off a three-year bottom of $26.50.


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Among the biggest losers on the Nasdaq is Super Micro Computer, Inc. (NASDAQ:SMCI), down 14% at $27.36. Sinking shares of the tech firm are lackluster guidance and a round of price-target cuts.

The CBOE Volatility Index (VIX) is 0.4 point, or 2.1%, higher, at 17.78.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 0.66, with calls holding a rare edge over puts. At last check, SPY was up 0.4 point, or 0.2%, at $201.60.

 
 

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