October 12, 2015 Market Wrap Up

The S&P 500 closed the day slightly higher; however, volume was extremely light. The SPDR S&P 500 ETF (SPY) traded less than 60 million shares. To put that into perspective, it normally trades around 145 to 150 million shares per day.

With that said, the VIX has melted over the last two weeks. It was down over 5% and is now at 16.17.

The energy sector was weak; the United States Oil Fund (USO) was down 4%. Last week, it rallied with the stock market, so far we are seeing a divergence.

On the options front, we saw bullish call buying in Cabelas Incorporated (CAB). Options that saw bearish put buying were in DeVry Education Group Inc (DV) and 2U Inc (TWOU). Now, the put activity in (TWOU) could be attributed to negative comments made out by Citron Research, as the stock dropped nearly 18%.

Today was a bank holiday, but the action should pick up as we get more economic data and earnings later this week.

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

Key Economic Data:
14 October 2015- PPI 8:30 AM ET, Retail Sales 8:30 AM ET
15 October 2015- Consumer Price Index 8:30 AM ET, Jobless Claims 8:30 AM ET, Philadelphia Fed Business Outlook Survey 10:00 AM ET
16 October 2015- Industrial Production 9:15 AM ET

Key Earnings:
13 October 2015- FAST, ADTN, CSX, INTC, JPM, LLTC
14 October 2015- BAC, BLK, DAL, WFC, NFLX, XLNX
15 October 2015- BX, C, FCS, GS, KEY, MAT, MTG, PM, PPG, SCHW, TSM, USB, AMD, SLB
16 October 2015- GE, HON, KSU