October 12, 2015 Market Wrap Up

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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

October 11, 2015 The Week Ahead

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October 11, 2015 The Week Ahead

The S&P 500 ended the week significantly higher, up over 3% and now trading above 2000. In fact, we’re just 5% off from the 52 week high and nearly 13% above the 52 week lows.

With that said, the VIX closed around 17, dropping more than 15% for the week.

Many attribute this move higher to the fact that the Fed is less likely to raise rates this year. In addition, incoming weak economic data makes it more likely we won’t see a rate hike any time in the near future. We’re back to the ol’ bad news is good for the market mantra.

Crude Oil futures closed the week at one month highs… nearly $3 away from 3-month highs. The United States Oil Fund (USO) was up more than 8% on the week.

Earnings season picks up steam this week as we’ve got earnings from the likes of The Goldman Sachs Group, Delta Air Lines, Intel Corporation, General Electric, and Netflix to name a few.

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:
12 October 2015- INFY
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

October 6, 2015 Market Wrap Up

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October 6, 2015 Market Wrap Up

The S&P 500 finished the day slightly lower, after five straight days of upward action. Interestingly, that was the longest winning streak of the year (to-date).

The biotech continues to get hit; some politicians and media are expressing anger towards the way many of these companies are conducting business. For example, Pfizer (PFE) has raised prices on 133 drugs this year…and they are not the only ones. The iShares Nasdaq Biotechnology Index Fund (IBB) is down over 10% over the last month.

The VIX was up, closing at 19.40, the second closing below 20 this week.

The energy sector was up today; the United States Oil Fund (USO) was up nearly 5%.

On the options front, we saw bullish call buying in Immunomedics (IMMU). Options that saw bearish put buying were in Jabil Circuit (JBL).

Key Economic Data:
8 October 2015- Jobless Claims 8:30 AM ET, FOMC Minutes 2 PM ET

Key Earnings:
7 October 2015- MON, STZ
8 October 2015- DPZ, AA

Key Events:
6 October 2015 (runs till the 9th)- Amazon Services Invent Conference

October 4, 2015 The Week Ahead

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October 4, 2015 The Week Ahead

The S&P 500 ended the week higher, making it four straight days after seeing a full week of selling, last week.

With that said, the VIX closed above 20, where it’s been for over a month.

One could argue we’ve simply bounced from extreme oversold conditions. Of course, with China on holiday, that helped take some pressure off the markets.

Crude Oil futures were relatively unchanged this week, as prices are trading slightly above $45 per barrel. Interestingly, we also saw a pop in precious metals futures on Friday. Gold futures traded more than 2% higher.

Earnings season kicks off on Thursday, here’s what else is on tap:

Key Economic Data:
6 October 2015- International Trade 8:30 AM ET
8 October 2015- Jobless Claims 8:30 AM ET, FOMC Minutes 2 PM ET

Key Earnings:
5 October 2015- TCS
6 October 2015- PEP, YUM
7 October 2015- MON, STZ
8 October 2015- DPZ, AA

Key Events:
5 October 2015 (runs till the 6th)- 18th Annual Cowen Therapeutics Conference
6 October 2015 (runs till the 9th)- Amazon Services Invent Conference

September 29, 2015 Market Wrap Up

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September 29, 2015 Market Wrap Up

The S&P 500 finished the day slightly higher, however; we gave up most of our gains and even went negative for a decent portion of the day. In fact, we hit lows that we have not seen since August 24.

The biotech sector is still reeling off the comments made by politicians, regarding the cost of drug prices and more regulation. The iShares Nasdaq Biotechnology Index Fund (IBB) is down over 10% in the last week.

The VIX was actually down, closing at 26.83. For now, it appears that 20 might be a new base level.

The energy sector was up today; the United States Oil Fund (USO) was up less than 1%.

On the options front, we saw bullish call buying in Burlington Stores Inc (BURL). Options that saw bearish put buying were in Lululemon Athletica Inc (LULU).

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

Key Economic Data:
1 October 2015- Jobless Claims 8:30 AM ET, ISM Manufacturing Index 10 AM ET
2 October 2015- Employment Situation 8:30 AM ET

Key Earnings:
29 September 2015- COST
1 October 2015- MU

Key Events:
29 September 2015 (runs till 10/1)- American Gaming Association Global Gaming Expo
29 September 2015 (runs till 9/30)- Wolfe Research Power & Gas Leaders Conference

September 27, 2015 The Week Ahead

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September 27, 2015 The Week Ahead

The S&P 500 ended the week lower, however; the trading range was fairly narrow.

With that said, the VIX closed above 23, as 20 appears to be the new base.

A lot of attention has been placed on the biotech/pharma sector after presidential candidate Hillary Clinton, made some comments regarding prescription costs. The market took these comments as being a negative in the sector, and thus, have put prices under pressure.

Crude Oil futures were relatively unchanged this week, as prices are trading slightly above $45 per barrel.

Now, here’s what’s on tap, starting on Monday:

Key Economic Data:
28 September 2015- Personal Income & Outlays 8:30 AM ET
1 October 2015- Jobless Claims 8:30 AM ET, ISM Manufacturing Index 10 AM ET
2 October 2015- Employment Situation 8:30 AM ET

Key Earnings:
29 September 2015- COST
1 October 2015- MU

Key Events:
28 September 2015 (runs till 9/30)- Deutsche Bank Leveraged Finance Conference
28 September 2015 (runs till 9/30)- Johnson Rice Energy Conference
29 September 2015 (runs till 10/1)- American Gaming Association Global Gaming Expo
29 September 2015 (runs till 9/30)- Wolfe Research Power & Gas Leaders Conference

September 24, 2015 Market Wrap Up

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September 24, 2015 Market Wrap Up

The S&P 500 finished the day lower, down over 0.5%, however; we got a big bounce off the lows, a range of about 30 points. The market got very weak after Caterpillar Inc (CAT) dropped their sales outlook and referenced that it could cut over 10,000 jobs. Of course, this is one of those companies that market participants use as a gauge of economic strength. Naturally, disappointing statements would be reflected in the overall market.

The VIX was up over 6%, closing at 23.457. For now, it appears that 20 might be a new base level.

The energy sector was up today; the United States Oil Fund (USO) was up about 1%. In addition, gold was very strong, the SPDR Gold Shares (GLD) was up over 2%.

On the options front, we saw bullish call buying in Cirrus Logic Inc (CRUS). Options that saw bearish put buying were in Williams Companies Inc (WMB).

Nike (NKE) reported earnings after the close, at the time of this writing, the stock is up 7%. Also, Fed Chairman, Janet Yellen is giving a speech on inflation.

Here’s what’s on tap for tomorrow:

Key Economic Data:
25 September 2015- GDP 8:30 AM ET

Key Earnings:
25 September 2015- FINL

September 22, 2015 Market Wrap Up

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September 22, 2015 Market Wrap Up

The S&P 500 finished the day significantly lower, down over 1%. There was some weakness out of Europe that followed through into the US markets. Much of that was attributed to some news out of Volkswagen and allegations that they’ve been manipulating emission tests.

The biotech sector took a hit for a second straight day. Analysts will be closely listening to comments out of Presidential hopeful, Hillary Clinton. Her comments on twitter are what really drove the sector south.

The VIX was up over 11%, closing at 22.45. For now, it appears that 20 might be the new base level.

The energy sector was relatively flat today; the United States Oil Fund (USO) was down less than 1%.

On the options front, we saw bullish call buying in Crocs Inc (CROX). Options that saw bearish put buying were in Hewlett Packard Co (HPQ).

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

Key Economic Data:
24 September 2015- Durable Goods Orders 8:30 AM ET, Jobless Claims 8:30 AM
25 September 2015- GDP 8:30 AM ET

Key Earnings:
24 September 2015- ACN, BBBY, JBL, KBH, NKE, PIR
25 September 2015- FINL

September 21, 2015 The Week Ahead

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September 21, 2015 The Week Ahead

The S&P 500 ended the day higher, however; volume was very light. With that said, we did get some form of relief after Friday’s sell off.

Despite the lackluster volume, the VIX sold off rather harshly, ending the day down nearly 10% at 20.14

Crude Oil futures were relatively strong, the United States Oil Fund (USO) was up nearly 3 percent.

On the options front, we saw bullish call buying take place in Etsy Inc. (ETSY). The bears were out in Valeant Pharmaceuticals International (VRX). In fact, the pharmaceutical space as a whole took a hit today after Presidential hopeful, Hillary Clinton, made some comments that were taken negatively amongst the sector.

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September 14, 2015 The Week Ahead

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September 14, 2015 The Week Ahead

The S&P 500 ended the week slightly higher, however; all eyes will be on the FOMC meeting, which is on Thursday. With that said, the markets might trade choppy on light volume. In addition, the Jewish New Year, begins Sunday night and ends Tuesday night.

It’s now been four straight Friday’s where the VIX has closed above 23.

Crude Oil futures were relatively flat last week. But, we’re less than $7 from the multi-year lows.

Here’s what else is on the schedule:

Key Economic Data:
15 September 2015- Retail Sales 8:30 AM ET, Industrial Production 9:15 AM
16 September 2015- Consumer Price Index 8:30 AM ET
17 September 2015- Housing Starts 8:30 AM ET, Jobless Claims 8:30 AM ET, Philly Fed Survey 10:00 AM ET, FOMC Meeting Announcement 2:00 PM ET, FOMC Forecasts 2:00 PM, Fed Chair Press Conference 2:30 PM ET

Key Earnings:
16 September 2015- ARCW, ASNA, CBRL, FDX, ORCL
17 September 2015- ADBE, RAD