Initial jobless claims were 369,000 which was better than expectations of 375,000. Durable goods orders were up 9% which also beat expectations of up 8%. European stocks are up today partly on news that British GDP was a positive 1% for the third quarter which means for the moment, the country is no longer technically in a recession. The S&P 500 is finding support at its 75-day moving average.
In Freescale Semiconductor (FSL) there was 49x the normal volume traded yesterday. Almost all of the action was concentrated in the Nov 10 calls. The company reports after the close tonight. It does not appear to be a hedge of short positions. Quiksilver (ZQK) unusual flow with a buyer of 4,000 Feb 4 calls. The retail sector is faring better than the overall market following September same store sales results and guidance.
Market participants bought 1500 NeoPhotonics (NPTN) Dec calls – the volume was 170% of total open interest. Ahead of earnings on next Tuesday, traders bought downside protection in Time Warner Cable (TWC) with 10,000 Jan 87.50 puts. There was also a bearish trades in Hill-Rom (HRC), GNC (GNC), Terex (TEX), Virgin Media (VMED), Xilinx (XLNX), Avago Technologies (AVGO) and Vistaprint (VPRT). Bullish trades were seen in QEP Resources (QEP), Scripps Networks Interactive (SNI), InvenSense (INVN), Trinity Industries (TRN), Freescale Semiconductor (FSL), Superior Energy Services (SPN), WellCare Health Plans (WCG) and Encana Corporation (ECA).