Q1 GDP grew 0.1% (up 1.2% was the consensus. ADP April estimate slightly higher at 220k job gain. Employment number Friday is the important one. Overseas markets mixed, commodities (oil, metals) lower. 10-year 2.68%. Ms. Yellen speaks at 1:00pm CD, will GDP growth be mentioned as all weather related? Volatility as an asset class:
Twitter (TWTR) is down $5.35 to $37.29 in the premarket after reporting less than expected user growth and a break-even quarter on revenues that beat expectations. May weekly call option implied volatility is at 189, June is at 67, July is at 58, September is at 56; compared to its 23-week average of 59.
eBay (EBAY) is down $2.49 to $52.05 after reporting Q1 earnings and sales that beat expectations but guiding Q2 profits below expectations. The online marketplace also announced that it repatriated $9B worth of cash, on which it took a $3B charge in the quarter. May weekly call option implied volatility is at 59, June is at 25, July is at 24 and October is at 23; compared to its 26-week average of 29.
Panera Bread (PNRA) is recently down $9.33 to $153.85 in the premarket after reporting Q1 earnings and sales that beat estimates but guiding to Q2 earnings that were below expectations. May call option implied volatility is at 41, June is at 29, August is at 28; compared to its 26-week average of 28.
Options expected to be active @ CBOE: POM EXC TWTR SAN FB EBAY AUXL GOGO RGS CME
CBOE S&P 500 BuyWrite Index (BXM) at 1055.17, compared to its 10-day moving average of 1050.43 cboe.com/BXM
CBOE DJIA BuyWrite Index (BXD) at 262.20, compared to its 50-day moving average of 258.16 cboe.com/micro/bxd/
CBOE S&P 500 Short-Term Volatility Index (VXST) at 13.68, compared to its 10-day moving
average of 13.33. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2
iPath S&P 500 VIX Short-Term Futures (VXX) up 13c to 40.31
CBOE Volatility Index (VIX) at 13.71, compared to its 10-day moving average of 13.79 and its 50-day moving average of 14.50 cboe.com/VIX
SPDR S&P 500 ETF Trust (SPY) is down 0.30 to $187.20 ahead of the close of the FOMC policy meeting today. The Fed is nearly universally seen as cutting back QE by another $10B to a pace of $45B per month, and there will be no post-meeting press conference or new economic forecasts.
Calls with increasing volume at CBOE:
EEM 9/20/2014 44 20K contracts
BAC 1/17/2015 22 11K
SPY 5/2/2014 188 8K
FB 5/17/2014 60 6K
CVX 6/21/2014 130 5K