After the open… The market didn't know which way to go for a time this morning, but it has found a direction now – down. Traders are almost certainly ready to shed the worst of their Ebola fears based on the mere fact that no other shoe has fallen. Ford (F) warned on Wednesday that its European arm would be unprofitable for another year, adding to concerns that the strong dollar would hurt some American companies. Oddly, the market seems more interested in considering what Tesla (TSLA) might unveil on October 9 than it is worried about Ford. Other indicators are mostly positive, including the lowest number of new unemployment claims in 8 years. Also, West Texas Intermediate Crude fell below the $90 threshold for a time this morning, which could keep American transportation and manufacturing strong. Finally, Warren Buffet is buying stock on the dip.
Here are your Thursday morning market metrics. Industries doing well today include Airlines, Trading Companies and Independent Power. Industries showing weakness include Energy Equipment, Oil & Gas and Metals & Mining.
The VIX is up 1.25% to 16.50 after closing on Wednesday at 16.71. The most active option strike this morning is Twitter (TWTR), with 14,997 October-3 53 calls and 14,607 October-3 53.5 calls changing hands. The put-call volume ratio is 0.88, (322,820/283,608). NYSE Adv/Dec 1,443/1,494. Nasdaq Adv/Dec 1,369/999.
Julian Close has been a business writer since the first day of the twenty-first century, having written for PRA International and the United Nations Department of Peacekeeping. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. He became a stockbroker in 1993, but now works for Fresh Brewed Media and uses his powers only for good. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.