National Semi Puts Jump; Stocks Slump
Earnings warnings from Computer Associates and BMC Software combined with a
semiconductor sector downgrade to send stocks into the red Wednesday as traders
returned from the Fourth of July holiday.
Salomon Smith Barney lowered its rating on the chip sector, which weighed on
technology throughout the session.
By the close, the VIX had increased 1.26 to 23.59.
The OEX June 790 calls finished down 7 to 12 1/4.
Among bigger movers on heavier-than-average volume:
National Semiconductor
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PowerRating) was hit hard by the semi downgrade, falling
8 3/16 to 49 15/16. The National Semi July 50 puts jumped 2 1/4 to 3 1/4 on more
than 1400 contracts.
Fiber optic cable layer Qwest
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PowerRating) rose 5 to 56 3/4 on word the company had
been chosen to join the S&P 500. The Qwest July 50 calls gained 4 3/8 to 8
1/4 on triple the average volume.
Merrill Lynch
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PowerRating) was a standout for the brokerages today, gaining 2
1/2 to 118. The Merrill Lynch July 120 calls tacked-on 1 3/8 to 3 1/2 on triple
average volume.Â
IBM
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PowerRating) was one of the weakest Dow components, falling 5 1/2 to 104.
The IBM July 100 puts rose 1 9/16 to 2 9/16 on quadruple average volume.
Looking ahead, the much-anticipated June employment report will be released Friday
at 8:30 AM ET.