On Thursday as the financial markets fell thanks to weak manufacturing data from China, the VIX jumped to an intraday high of 14.04–its greatest level since Jan. 3–before closing at 13.90, up 1.06 (8.26%) for the day.?
This came as the S&P 500 (SPX) fell 17 points (0.91%) to 1,828 and the?Dow Jones Industrial Average?(DJIA) was off 176 points (1.08%) to 16,197. The?Nasdaq?Composite Index (COMP) was down 24 points (0.57%) to 4,219.
Peter Cecchini, chief strategist at Cantor Fitzgerald, said of Thursday’s VIX jump via Reuters, “Volatility tells us little about the real state of affairs in the economy. It will make a comeback in 2014, but equity markets will ultimately grind higher as the credit cycle slowly turns. We think we are in a 2011 paradigm for volatility with average VIX closer to its 20-year average of 20.”
Adding to Thursday’s tumble was the release of fourth quarter earnings reports. On the disappointing end,?McDonald’s Corp (MCD) saw weaker-than-expected revenue as less customers ate at their restaurants last quarter. After undergoing initial losses, the stock closed at $95.32, up 0.44 (0.46%).
On the positive side after sharing on Wednesday that it had added 2.3 million-plus U.S. customers during the fourth quarter, Netflix Inc (NFLX) shares jumped 16.48 percent to $388.72–the S&P 500’s top performer for the day.?
For the day, 288,631 NFLX options contracts traded on Thursday–the fourth most active option.
In all, 21 S&P 500 companies reported earnings on Thursday with?Microsoft Corp (MSFT) and Starbucks Corp (SBUX) announcing theirs after the market’s close.?
On Friday, earnings reports will come from the following companies: Black & Decker,?Bristol-Myers Squibb, Covidien, Honeywell, Kansas City Southern, Kimberly-Clark, Stanley, Procter and Gamble,?Prosperity Bancshares,State Street, WW Grainger and?Xerox.