After the open… Stocks fell sharply in early trading due to worries over the global economy, after the IMF cut its global growth estimates for this year and next. The weakness is largely coming from outside the US, especially China, Brazil and the Eurozone, but all global companies will feel the pinch. The selloff is broad; the S&P 500 is down 0.75%, but no sector is down as much as 2%.
Here are your Tuesday morning market metrics. Industries doing well today include Paper & Forest Products and Technology Hardware. Industries showing weakness include Airlines, Trading Companies and Road & Rail.
The VIX is up 6.5% to 16.46 after closing on Monday at 15.46. The most active option strike this morning is EarthLink (ELNK), with 35,829 January 4 calls changing hands – all, clearly initiated as sells. The put-call volume ratio is 0.75, (348,354/260,117). NYSE Adv/Dec 834/2,073. Nasdaq Adv/Dec 554/1,849.
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.