Weak data and falling crude oil prices put the economy back in focus. Stocks fall…but not very much. Read More.

The US Oil Fund (USO) is down $2.34 to $33.42 after two days of weak economic data and bearish inventory data conspired to send crude oil reeling–down $4.43 to $62.80 a barrel Wednesday. In the options market, a noteworthy trade surfaced in USO late in the day after a player bought 100,000 Jan2010 calls at the 55 strike for 25 cents.

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

The top options trade of the day is in SLM Corp. (SLM). Shares are down 10 cents to $8.77 and a block of 35.8K Jan2011 $2.5 puts traded for 45 cents. It was bought and looks like a new position. It appears to be some “disaster insurance” because the stock is down 10 cents to $8.77 and the put is 71.5 percent out-of-the-money. Interestingly, it comes the day after SLM saw bullish order flow, including large buyers of Sept 10 calls Tuesday. The company reported earnings last week. Implied volatility is steady aruond 62 today and not far from 52-week lows.

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

Melco Crown Entertainment (MPEL) is down 40 cents to $5.20 and options volume is running 4X the average daily. Oct 5 puts are the most actives, with 5,140 traded, which includes a block of 5000, bought for 80 cents, according to a source on the floor. It might be closing. The put buying in MPEL comes ahead of earnings, expected in mid-August. Implied volatility is steady around 78 percent.

Novavax (NVAX) has seen a spike, and is now up 51 cents to $4.77 (52-week high) on heavy volume. Options activity is heating up as well. Total volume is running 2X the average daily, with 5,300 calls and only 90 puts traded (chart). Aug and Sep 7.5s are the most actives, as some players buy premium in anticipation of additional upside.

Stocks are set to open lower on falling commodities prices and weak economic data. Thirty minutes before the opening bell on Wall Street, stock index futures indicate that the Dow Jones Industrial Average might lose 50 or 60 points at the open.

Orders for durable goods fell much more than expected in June. According to data released one hour before the start of trading in New York, orders fell 2.5 percent in June, much worse than the .6 percent decline economists were expecting. It was the biggest decline in durable goods since January.

However, excluding transportation, orders rose 1.1 percent. Economists were looking for no change in durable goods ex-transportation.

Nevertheless, stock index futures, which were already in the red prior to the report, sank further when the numbers were released.

The Fed’s Beige book, which offers a qualitative assessment of economic conditions, is due out at 2:00 p.m. eastern time.

Bonds are holding gains on the weak durable goods report and ahead of the Beige Book. The benchmark ten-year Treasury is up a few ticks and yields 3.64 percent.

The dollar gained .28 to 94.75 on the yen. The euro is off .0075 to 1.4107 against the buck.

Crude oil is down ahead of weekly inventory at 10:30 a.m. eastern time. Crude dipped $1.50 to $65.73 a barrel. Gold lost another $4.7 to $937 an ounce.

Among the stocks to watch, Yahoo (YHOO) is down $1 to $16.22, as some investors express disappointment with the company’s long-awaited 10-year search deal with Microsoft (MSFT).

Time Warner (TWX) shares are holding modest gains after the company reported a quarterly profit of 45 cents per share, which beat Street views by 8 cents. Sprint Nextel (S) is lower after the company reported a quarterly loss of 13 cents per share, and 11 cents worse than analyst estimates.

Hartford (HIG) and Visa (V) might see some action ahead of earnings, due out after the bell. Dow component Exxon Mobile (XOM) reports tomorrow morning.