After the open… traders were feeling good after the market hit an all-time intraday high on the S&P 500. Overnight came news that Saudi Arabia would be cutting the price of oil to the United States, and that caused the weak oil market to crash. West Texas Intermediate fell to a low near $76 per barrel this morning, before rebounding slightly to $77.20. The S&P 500 is currently down about 0.3%. There may not be a lot of stock market action until there is at least some semblance of stabilization in the price of oil. Traders simply have no idea which way to leap right now as the world is being transformed before their eyes.
Lots of revenue caused Alibaba (BABA) stock to rise, following its first earnings report as a public company, despite a falling operating income due to stock-compensation.
Here are your Tuesday morning market metrics. Industries doing well today include Airlines, Paper & Forest Products and Air Freight. Industries showing weakness include Energy Equipment, Personal Products and Internet / Catalog Retail.
The VIX is up 1.8% to 14.99 after closing on Monday at 14.73. The most active option strike this morning is Southwest Airlines (LUV), with 8,481 March 35 calls changing hands, apparently initiated as sells. The put-call volume ratio is 0.92, (235,698/216,116). NYSE Adv/Dec 1,149/1,647. Nasdaq Adv/Dec 986/1,233.
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.