March 3, 2016 Market Wrap Up

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For the first two months of the year, it seemed like the market was in turmoil. However, over the first three days of March, the market has been on a tear. We’ve seen the VIX practically implode, down 20% over the last three sessions.

The S&P 500 is up 3% in that short time span. Crude Oil is up about 5% as well. Interestingly, we’re also seeing a pop in gold prices, which are up 2% as well.

This sets the stage for tomorrow’s monthly jobs report. We could see continued momentum or a halt depending on how the numbers play out.

On the options front, we saw large call buying activity in Jones Lang LaSalle (JLL). In addition, we saw heavy put buying in Axalta Coating Systems (AXTA), which was 4.2 times usual options volume.

Stocks in play included: Ciena (CIEN) -17%, Pepco Holdings (POM) -1.3%, and Tumi Holdings (TUMI) +30%

Here’s what’s going on tomorrow:

Key Economic Data:
4 March 2016- Employment Situation 8:30 AM ET, International Trade 8:30 AM ET

Key Earnings:
4 March 2016- SPLS

Key Conferences:
Simmons Energy Conference

March 2, 2016 Market Wrap Up

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So far, the months of January and February have spoiled traders in terms of volatility. Now, we’ve only had two days in March, but volatility is coming in hard. The VIX is down nearly 17% over the last two days, and is now trading at 17.

We’re almost getting back to the ol’ good news is good and bad news is good environment. For example, we saw a build in crude oil inventories. However, crude oil prices reacted positively towards those figures.

On the options front, we saw large call buying activity in PulteGroup (PHM). In addition, we saw heavy put buying in BP Prudhoe Bay Royalty Trust (BPT), which was three times usual options volume.

Stocks in play included: Altisource Portfolio Solutions (ASPS) +8.25%, SunEdison (SUNE) +19.3%, and Tableau Software (DATA) -9%.

Here’s what’s going on tomorrow and the rest of the week:

Key Economic Data:
3 March 2016- Jobless Claims 8:30 AM ET
4 March 2016- Employment Situation 8:30 AM ET, International Trade 8:30 AM ET

Key Earnings:
2 March 2016- ANF, DSX, COSST, NOG
3 March 2016- BKS, BURL, CIEN, JOY, CIEN, KR, SSYS, AMBA, AVGO, NMBL
4 March 2016- SPLS

Key Conferences:
3 March 2016- BMO Metals & Mining Conference (runs till 3/3), Morgan Stanley Technology, Media & Telecom Conference (runs till 3/3), Simmons Energy Conference (runs till 03/4)

March 1, 2016 Market Wrap Up

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We had lift-off in the markets today, as the S&P 500 closed more than 2% higher on the day. Even more impressive, the Nasdaq closed more than 3% higher. The S&P 500 is nearly 10% higher than its February 11 lows.

Crude oil futures closed the day higher, trading comfortably above $34 per barrel. Of course, tomorrow we’ll have data from the Department of Energy on inventory levels. This is a report many traders will be paying attention to.

The VIX got clobbered, dropping more than 13% and closing at 17.70.

On the options front, we saw large call buying activity in ImmunoGen (IMGN). In addition, we saw heavy put buying in Fastenal Company (FAST), about 5.9 times usual options volume.

Stocks in play included: Valeant Pharmaceuticals (VRX) -1%, Tesla Motors (TSLA) -3%, and Pepco Holdings (POM) -12%.

Here’s what’s going on tomorrow and the rest of the week:

Key Economic Data:
1 March 2016- ISM Mfg Index 10:00 AM ET
2 March 2016- EIA Petroleum Status Report 10:30 AM ET
3 March 2016- Jobless Claims 8:30 AM ET
4 March 2016- Employment Situation 8:30 AM ET, International Trade 8:30 AM ET

Key Earnings:
2 March 2016- ANF, DSX, COSST, NOG
3 March 2016- BKS, BURL, CIEN, JOY, CIEN, KR, SSYS, AMBA, AVGO, NMBL
4 March 2016- SPLS

Key Conferences:
29 February 2016- BMO Metals & Mining Conference (runs till 3/3), JPMorgan High Yield Leveraged Finance Conference (runs till 3/2), Morgan Stanley Technology, Media & Telecom Conference (runs till 3/3)
2 March 2016- Simmons Energy Conference (runs till 03/4)

February 28, 2016 The Week Ahead

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The S&P 500 finished the week slightly higher, adding to last week’s impressive gains. With that said, the VIX closed the week below 20, at 19.58.

Crude oil prices bounced, gaining nearly 10% on the week. We’ll have to pay attention if there is any news out of OPEC. Lately, OPEC related comments have had a huge weight on the price action in crude oil.

There are still a ton of earnings this week along with a decent amount of economic events.

Here’s what else is on tap:

Key Economic Data:
1 March 2016- ISM Mfg Index 10:00 AM ET
2 March 2016- EIA Petroleum Status Report 10:30 AM ET
3 March 2016- Jobless Claims 8:30 AM ET
4 March 2016- Employment Situation 8:30 AM ET, International Trade 8:30 AM ET

Key Earnings:
29 February 2016- AMC, BSFT, DDD, ENDP, HZNP, LL, NRG, NVAX, VRX, TASR, ATML, HTZ, JUNO, PTCT, WDAY, MBI, XON
1 March 2016- AZO, BCS, DLTR, JD, KATE, MDT, BOBE, ROST, VEEV
2 March 2016- ANF, DSX, COSST, NOG
3 March 2016- BKS, BURL, CIEN, JOY, CIEN, KR, SSYS, AMBA, AVGO, NMBL
4 March 2016- SPLS

Key Conferences:
29 February 2016- BMO Metals & Mining Conference (runs till 3/3), JPMorgan High Yield Leveraged Finance Conference (runs till 3/2), JMP Securities Technology Conference (runs till 3/1), Morgan Stanley Technology, Media & Telecom Conference (runs till 3/3)
2 March 2016- Simmons Energy Conference (runs till 03/4)

February 23, 2016 Market Wrap Up

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The S&P 500 was relatively weak the whole day, giving up nearly all of yesterday’s gains. Some attribute the weakness due to concerns out of China and Europe, as their markets closed lower as well.

A sell-off in crude oil didn’t really help the cause either. After a huge move up yesterday, crude oil futures prices gave up half of yesterday’s gains. We’re hovering in the low 30s…well off our recent lows of 26.

The VIX closed below 20 yesterday. However, with the weakness in the markets today, it jumped back above that 20 mark, closing 8% higher at 20.98.

On the options front, we saw large call buying activity in Kate Spade and Company (KATE). In addition, we saw heavy put buying in Ryanair Holdings (RYAAY), about 32.9 times usual options volume.

Stocks in play included: Whirlpool (WHR) +6.5%, Motorola Solutions (MSI) +6%, and PTC Therapeutics (PTCT) -60%.

Here’s what’s going on tomorrow and the rest of the week:

Key Economic Data:
24 February 2016- New Home Sales 10:00 AM ET, EIA Petroleum Status Report 11:00 AM ET
25 February 2016- Durable Goods Orders 8:30 AM ET, Jobless Claims 8:30 AM ET
26 February 2016- GDP 8:30 AM ET, International Trade 8:30 AM ET, Personal Income and Outlays 8:30 AM ET

Key Earnings:
24 February 2016- CC, CHK, LOW, MBLY, TGT, RLGY, AVG, CRM, ETE, HPQ, IMAX, NFX, NTES, RIG, SUN, TUMI, WLL
25 February 2016- APA, BBY, CHS, CPB, DPZ, GOGO, KSS, SAFM, SEAS, SFM, SN, VAC, VALE, WNR, ADSK, BIDU, BLOX, BMRN, HLF, INTU, KHC, PANW, STRZA, SPLK, UHS, WTW
26 February 2016- HLT

Key Conferences:
22 February 2016- Credit Suisse Energy Summit (runs till 2/25)
23 February 2016- Jeffries Media and Communications Conference (runs till 2/24), RBC Healthcare Conference (runs till 2/24)
24 February 2016- Wells Fargo Real Estate Conference (runs till 2/25), Wells Fargo Bank Investor Forum

February 21, 2016 The Week Ahead

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The S&P 500 finished the week nearly 3% higher, now more than 100 points higher from our year-to-date low.

Despite steady gains in the equity markets, crude oil prices continue to see large up and down swings. A lot of this occurring because of recent OPEC rumors, on whether they’ll work together on constricting supply or not. With that said, crude oil prices did close the week slightly higher.

The VIX closed the week significantly lower, as it dropped from the 25 range to 20.53.

There are still a ton of earnings this week along with a decent amount of economic events (domestic and international).

Here’s what else is on tap:

Key Economic Data:
23 February 2016- Existing Home Sales 10:00 AM ET
24 February 2016- New Home Sales 10:00 AM ET, EIA Petroleum Status Report 11:00 AM ET
25 February 2016- Durable Goods Orders 8:30 AM ET, Jobless Claims 8:30 AM ET
26 February 2016- GDP 8:30 AM ET, International Trade 8:30 AM ET, Personal Income and Outlays 8:30 AM ET

Key Earnings:
22 February 2016- AGN, DF, BHP, FIT, ONDK, MSI
23 February 2016- HD, LAMR, LXK, M, ODP, TOL, SJM, CAR, DWA, ETSY, HAWK, JAZZ, PRA, TROX, TX
24 February 2016- CC, CHK, LOW, MBLY, TGT, RLGY, AVG, CRM, ETE, HPQ, IMAX, NFX, NTES, RIG, SUN, TUMI, WLL
25 February 2016- APA, BBY, CHS, CPB, DPZ, GOGO, KSS, SAFM, SEAS, SFM, SN, VAC, VALE, WNR, ADSK, BIDU, BLOX, BMRN, HLF, INTU, KHC, PANW, STRZA, SPLK, UHS, WTW
26 February 2016- HLT

Key Conferences:
22 February 2016- Credit Suisse Energy Summit (runs till 2/25)
23 February 2016- Jeffries Media and Communications Conference (runs till 2/24), RBC Healthcare Conference (runs till 2/24)
24 February 2016- Wells Fargo Real Estate Conference (runs till 2/25), Wells Fargo Bank Investor Forum

February 18, 2016 Market Wrap Up

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It was a rather uneventful trading session today. For the most part, indices traded slightly lower, after posting solid gains in the previous three sessions. The S&P 500 is up about 5% over the last four trading days.

Despite the sell-off, we’re starting to see volatility come in. For example, the VIX actually sold off, even with the markets lower. It closed the day down 3% at 21.64.

With that said, crude oil prices have seen a nice bounce this week, up more than 10% on hopes that we’ll see production cuts out of OPEC. At the moment, there is a tentative agreement to freeze production, but we still have to wait and see on whether that will come into fruition.

On the options front, we saw large call buying activity in Avon Products (AVP). In addition, we saw heavy put buying in First Republic Bank (FRC), about 51.2 times usual options volume.

Stocks in play included: Boise Cascade (BCC) -29%, Jack In The Box (JACK) -16%, and Ingram Micro (IM) +23%.

Here’s what’s going on tomorrow:

Key Economic Data:
19 February 2016- Consumer Price Index 8:30 AM ET

Key Earnings:
19 February 2016- DE

Key Conferences:
CAGNY Conference
Barclay’s Industrial Conference

February 16, 2016 Market Wrap Up

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The equity markets started the week off with a strong start, up more than 1.5% in the S&P 500. In addition, the Nasdaq and Russell 2000 posted gains greater than 2% respectfully. The gains held from last night’s session, as the Shanghai Index gained more than 3% along with a boost in crude oil futures prices.

The gains in oil came after an announcement that Qatar, Saudi Arabia, Russia, and Venezuela agreed “freeze” output. However, those gains faded as the news was not as bullish sounding as a production cut.

Despite the risk on appetite, the VIX only dropped about 5% and closed above 24.

On the options front, we saw large call buying activity in Chegg Inc (CHGG). In addition, we saw heavy put buying in CPI Card Group (PMTS), about 51.2 times usual options volume.

Stocks in play included: Gogo (GOGO) -29%, Community Health Systems (CYH) -22% and ADT (ADT) +49%.

We also saw a ton of SEC filings from funds, updating their status on new and old positions. For some stocks, these have the potential to move stock prices. For example, after the close, Berkshire Hathaway announced a stake in Kinder Morgan (KMI), which popped more than 6% higher in the after hours session.

Here’s what’s going on tomorrow and the rest of the week:

Key Economic Data:
17 February 2016- Housing Starts 8:30 AM ET, PPI 8:30 AM ET, Industrial Production 9:15 AM ET, FOMC Minutes 2:00 PM ET
18 February 2016- Jobless Claims 8:30 AM ET, Philly Fed Survey 8:30 AM ET, EIA Petroleum Status Report 11:00 AM ET
19 February 2016- Consumer Price Index 8:30 AM ET

Key Earnings:
17 February 2016- DPS, GRMN, TMUS, PCLN, SHOP, BLMN, HST, BRCD, CF, CYH, GDDY, JIVE, MAR, MRO, NTAP, NVDA, SPWR, WMB, PKD
18 February 2016- CAB, DAN, DISCA, DUK, HOT, LNG, MGM, MPEL, WM, WMT, PCG, AMAT, JWN, SAM, WAGE
19 February 2016- DE

Key Conferences:
15 February 2016- CAGNY Conference (runs till 2/19)
17 February 2016- Barclay’s Industrial Conference (runs till 2/19)

February 15, 2016 The Week Ahead

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The S&P 500 finished the week slightly lower and really not that far off our most recent lows. It doesn’t help that European markets are near multi-year lows and the Japanese market is down 20% year-to-date.

Not to mention, crude oil prices are hovering below $30 a barrel, putting a drag on global economies.

Many were expecting the markets to be subdued after China’s markets were closed for holiday.

However, that was not the case at all.

We’ll have to see how markets react during this shortened 4-day trading week.

The VIX closed the week higher, despite dropping nearly 10% on Friday, closing above 25.

Crude oil prices are still very near their most recent lows. The market has seen minor price spikes on rumors that OPEC might do something to try to stop the free-fall in prices. However, this continues to remain speculation.

There are still a ton of earnings this week along with a decent amount of economic events.

Here’s what else is on tap:

Key Economic Data:
17 February 2016- Housing Starts 8:30 AM ET, PPI 8:30 AM ET, Industrial Production 9:15 AM ET, FOMC Minutes 2:00 PM ET
18 February 2016- Jobless Claims 8:30 AM ET, Philly Fed Survey 8:30 AM ET, EIA Petroleum Status Report 11:00 AM ET
19 February 2016- Consumer Price Index 8:30 AM ET

Key Earnings:
16 February 2016- DF, GPC, A, BYD, DVN, ESRX, RAX, NBR, TEX, TRU
17 February 2016- DPS, GRMN, TMUS, PCLN, SHOP, BLMN, HST, BRCD, CF, CYH, GDDY, JIVE, MAR, MRO, NTAP, NVDA, SPWR, WMB, PKD
18 February 2016- CAB, DAN, DISCA, DUK, HOT, LNG, MGM, MPEL, WM, WMT, PCG, AMAT, JWN, SAM, WAGE
19 February 2016- DE

Key Conferences:
15 February 2016- CAGNY Conference (runs till 2/19)
17 February 2016- Barclay’s Industrial Conference (runs till 2/19)

February 11, 2016 Market Wrap Up

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The Equity markets have not seen a green day in five days, as we’re down nearly 5% over this period. With that said, we did see a slight bounce off the lows in the S&P 500. Overall, it was very controlled selling, we traded in a range between 1810 and 1847.

With China on holiday, a lot of the focus was on Fed Chairman Yellen’s testimony and the action in the crude oil market. Now, the Chairman’s testimony was unable to spark a rally. Luckily, crude oil was able to catch a bounce late afternoon after hovering below $27 per barrel.

The bounce was attributed to some chatter out of OPEC. The UAE Energy Minister mentioned that he would be open to discussing supply cuts, according to the Wall Street Journal. Of course, that was enough to turn crude oil around and enough to reduce some of the losses in the equity markets.

The VIX traded above 30 at one point, closing the day 7% higher at 28.14.

On the options front, we saw large call buying activity in Rentech Nitrogen Partners (RNF). In addition, we saw heavy put buying in Eaton Vance Corp (EV), about 12.4 times usual options volume.

Stocks in play included: J2 Global (JCOM) +16%, Tesla (TSLA) +5.8%, and Bank of America (BAC) -5.6%

Here’s what’s going on tomorrow:

Key Economic Data:
12 February 2016- Retail Sales 8:30 AM ET

Key Conferences:
12 February 2016- KBW Financial Conference