February 8, 2016 Market Wrap Up
The Chinese markets were closed today in celebration of their new year. With that said, many traders believed that volatility would come in during their holiday break. Well…that clearly wasn’t the case today. The S&P 500 sold off 1.4% and the NASDAQ was down more than 1.8%.
We continue to see weakness in Biotech, Technology, and the MLP sector. It probably doesn’t help that commodities are also weak. Most importantly, crude oil, which settled below $30 per barrel.
It’s not a real surprise to see the VIX trade above 25 today, finishing the day 11% higher and closing at 26.
On the options front, we saw large call buying activity in Penn National Gaming (PENN). In addition, we saw heavy put buying in Bloomin Brands (BLMN), about 58 times usual options volume.
Stocks in play included: Chesapeake Energy (CHK) -33%, Energy Transfer Equity (ETE), and Williams Companies (WMB) -35%.
We’ve got earnings from Coca-Cola (KO) and CVS Pharmacy (CVS) tomorrow, along with Disney (DIS). Overall, earnings have been pretty weak this quarter. Let’s see if that trend changes at all.
Here’s what’s on tap for the rest of the week:
Key Economic Data:
11 February 2016- Jobless Claims 8:30 AM ET
12 February 2016- Retail Sales 8:30 AM ET
Key Earnings:
9 February 2016- CVS, KO, MAS, VIAB, WYN, AKAM, DIS, NCR, NUAN, PNRA, WU
10 February 2016- ARMH, TWX, EXPE, IRBT, TWTR, WFM, ZNGA, MYL, LOCK, FNF
11 February 2016- AVP, BTU, BWA, CAG, GNC, K, MOS, NOK, PEP, RIO, SHPG, TAP, TIME, WWAV, AIG, ATVI, CBS, CYBR, FEYE, GRPN, INFN, P, QLIK, RSG
Key Conferences:
8 February 2016- Credit Suisse Financial Services Forum (runs till 2/10)
9 February 2016- Bank America Merrill Insurance Conference (runs till 2/11), Goldman Sachs Tech Conf (runs till 2/11), Goldman Sachs Insurance Conf (runs till 2/11)
10 February 2016- Leerink Healthcare Conference (runs till 2/11)
11 February 2016- KBW Financial Conference (runs till 2/12)