16 for the first time in two months. All of todays action begging two questions. Will the selling continue and which sectors are the most vulnerable. Mike, what do you say . Its interesting. The vix had the big spike today. If you look toward the end of the year and say, okay, how much are s p strike puts . How much did they go up in implied volatility terms. . The bump was nothing like the vix. Not like the fear went to the end of the year but people were probably caught by surprise looking at how fast the market sold off at the end of the day. It was an orderly straight down thing not a gap down which might have caused options premiums to go higher. I dont think a 2 or 3 discount is a huge buying opportunity. For the last eight weeks or so the s p 500 traded in a narrow range with a lot of complacency. Positioning was crowded in sectors where people were looking for yield. You have this overnight jump in implied probability for a rate increase that we know wont happen. There are a lo
Roughly where they are. And any motion there is going to be slow and deliberate. Lets get to bob pisani on the floor of the new york stock exchange. It is the newest leg of this rally, Dow Jones Industrial average at a high for the year and much of it is being fueled by that weak dollar set off by the fomc announcement yesterday. Want to show you that dollar index. Dollar lost 2. 2 against other currencies just in the last 24 hours or so. Thats a huge move. Big move and big help from materials and industrials and Energy Stocks. Look at caterpillar here. Caterpillar gave the worst kind of profit warning, dropping essentially dropping profits 30 in the First Quarter and the stock is up 1 today. Look at that. Moved about 3 . This is a twoday chart. Thats a sign of how powerful the weak dollar rally has been. Now, take a look at other commodity needs, throw in a couple of names, free port, alcoa, devin energy, Energy Stocks moving today. This is the second day of a notable rally. Put the s
Lets get right to it. Microsoft and apple tanking on earnings this week, could reports from apple and facebook be the next shoes to drop for tech . Lets get in the money right now. Dan, how do we set up . I think, listen, when you think about technology underperformance this week, it came into the end of the week we saw 50 billion shaved off between google and microsoft today. They were hanging in there, but if you think about it, there were a lot of disappointments this week. Ibm, intel in the past week. These two guys, so to me, i think as you look to next week, tuesday and wednesday, were going to have 1 trillion, or close to it, in a market cap between apple and facebook reporting again. Apple, i dont think expectations are particularly high and i dont think the stock will move a heck of a lot one way or the other unless there is a meaningful downgrade. Facebook, that stock rallied 15. 5 in late january when they beat on the q4. That seems to be one that people really want to keep
All those gains and now we are back to where we started the day. The nasdaq, the biggest gainer, up about. 7 . Energy stocks have been the biggest laggard all day. Lets look at the smp year to date as we get closer to the end of the year. We are lower by a little more than 2 with just eight trading days left. Higher inhas finished the past three years, but we are on track to break that will stop this is the seasonality chart and we are on track for our worst december since 2002, when december ended down by more than 6 stop we are on track to be 3 . By a little more than david not many indications we will be making up that ground by years end ramy . Ramy especially with some new research coming out saying that a year rally for the s p is in doubt ill stop we would need to rally about 2. 7 by the end of the year. Weve got eight trading days and the s p has only done that in the last eight days of the year just five times since 1928. Days were only positive 15 times, thats about 17 of the
Biggest gain since june of 2012. Crude prices rallying. Now 6 as you can see to 47. 41 on west texas crude. Weve given back some gains. The gains we saw on the settle. Nevertheless, enough po move theto move the markets off the low. Meanwhile, its the hottest ipo weve seen in some time. Were talking about shake shack. Up 132 or nearly 28 from its opening price. The burger destination causing a big commotion in the neighborhood. These are the lines outside until just about an hour ago. They had set up popup locations for the ipo assignment. They were free, open to the public. We both couldnt believe how long this line was. Look at it there. Stretching all the way down broad street. The valuation i read for where were trading on shake shack, 26 27 million per outlet. Not bad. Well watch as they continue to expand. By the way, guys down here on the floor arent too maple leaf. They didnt get those shake shack burgers. They didnt get them. Jpmorgan was the lead underwriter for the deal here