The Dow Jones Rallies Before the FOMC Meeting

03/08/2016 6:00 am EST


Karee Venema, Digital Content Editor at Schaeffer's Investment Research, analyzes the recent rally in the Dow Jones Industrial Average ahead of speeches from Federal Reserve Vice Chair Stanley Fischer and Fed Governor Lael Brainard.

The Dow Jones Industrial Average (DJIA) is extending its newfound foothold atop 17,000 today, erasing early losses amid tailwinds from Dow component DuPont (NYSE:DD). The stock is reacting to news that Germany-based BASF could put in a bid for the firm. Elsewhere, ahead of afternoon speeches from Federal Reserve Vice Chair Stanley Fischer and Fed Governor Lael Brainard, the S&P 500 Index (SPX) and Nasdaq Composite (COMP) are attempting to extend their winning streaks, as energy stocks rally with oil prices. April-dated crude futures were last seen trading 4.2% higher at $37.44 per barrel.

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One of the stocks that have seen unusual put volume is Wynn Resorts, Limited (NASDAQ: WYNN), with the contracts crossing at two times the average intraday rate. Amid some upbeat analyst attention, shares of the casino concern have overcome an initial drop, up 0.2% at $85.63. However, option traders are betting on a slide. Specifically, buy-to-open activity has been detected at WYNN's March 81 put.

Chesapeake Energy Corporation (NYSE:CHK) was one of the biggest advancers on the S&P 500 Index. The stock has more than doubled this month amid last week's scandalous fundamental developments -- and is now on pace to notch its first daily close north of its 120-day moving average since August 2014.

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Netflix, Inc. (NASDAQ: NFLX) was one of the leading laggards on the S&P, down 3.9% at $97.65. This negative price action is relatively rare for NFLX -- which, coming off of last week's big move, are up nearly 22% from their Feb. 8 year-to-date low of $79.95.

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By Karee Venema, ‎Digital Content Editor at Schaeffer's Investment Research

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