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Early and purported retail relief falls short of keeping the bulls interested in Thursday’s first half. As of 10:52 ET the SPYder” (SPY) and “Cubes” (QQQQ) are fractionally mixed by -.22% to .33% on lower and shop ‘til you drop volume totals.

On the heels of the market’s worst price slide in more than a month, Wal-Mart (WMT) and Costco (COST) headlined investors’ out-the-gate reasons for bargain-hunting. Within a bevy of mixed same-store sales results for April the world’s largest retailer posted a better-than-expected 3.2% jump. The increase trumped views by 1.1% and the company’s prior forecasted range of 1% to 3%. For its part, Costco reported a two percent beat with a sales increase of 8%. However, the company attributed the gains to higher gasoline prices and beefier sales receipts at its wholesale pumps. Intraday, shares of WMT are hanging onto gains of .30 near 57, while COST is lower by .50 near 71.60.

Elsewhere, two of the day’s highlighted retail beats came from department store chains Kohl’s (KSS) and JC Penney (JCP). Those operators are also known for their discounted prices and similarly, are struggling to find support from investors Thursday. In total, the overall results from retailers point to consumers keeping focused on the basics amidst soft economic conditions and firming prices for life’s necessities. Shares of KSS and JCP are each off about 1 point in active and volatile trade.

On the economic side, it’s not exactly relief at the pump just yet, but the bulls in crude are taking an intraday rest after four-straight sessions of surging prices. Currently, the US Oil fund (USO) is off .70 at 99.10 after hitting the psychological $100 level. Profit-taking and a two-month high in the US Dollar are two of the day’s catalysts. Further, traders factoring in crude’s larger inventory build-up from Wednesday are helping make an impression versus those worried over a decline in distillate inventories, which puts pressure on an already tight global diesel market.

On the officially sanctioned side, weekly claims have attempted to maintain the peace for the bulls. The latest reading has filings for benefits sliding by 28,000 to 365,000 and south of analysts views of 375,000. As noted at Briefing, claims are elevated but not at ‘recession bad’ levels like those seen in 2001 when readings of 400K-plus were the norm. Separately, wholesale inventories dropped by .1% and well-below estimates calling for a rise of .5%.

And finally, on the radar in options-land, Ivanhoe Mines (IVN) is once again reclaiming the top spot for unusual buy side interest from a gold bug or two. The spec miner (aren’t they all?) has seen 23,350 January 15 calls trade about an hour into the session. It’s not the first time the name has seen more than its share of active OTM buyers. In recent weeks and in various media outlets, this corner has commented on the rather frisky trading and typically with a dose of heavy salt to go along with the lightweight metal concern. That being said, with shares up .20 at 9.54, the calls are priced at 1.10 mid-market and up .25 on the day. However, in a stock and option market that can go from hot to very not and very quickly; it’s still looking like a poor man’s way to go digging for financial gold. 

Chris Tyler
Staff Writer & Options Strategist
Optionetics.com ~ Your Options Education Site
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The information offered here is based upon Christopher Tyler’s observations and strictly intended for educational purposes only, the use of which is the responsibility of the individual. 

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