Dow Cruises Higher In Light Trading Session
The Dow Jones Industrial Average (DJIA) is rallying today, though volume is predictably light for first day of the holiday-shortened week. Meanwhile, the gains have been less impressive for the S&P 500 Index (SPX) and Nasdaq Composite (IXIC), as tax reform concerns and political uncertainty in Germany loom. The economic calendar is rather bare for today, but the index of leading economic indicators rose in October bytwice the expected rate. Meanwhile, following the first weekly loss in six weeks, oil prices are moving lower once again, with December crude futures falling 1.5% to $55.70 per barrel.
Continue reading for more on today's market, including:
The drug stock downgraded on Amazon risk. Analyst: This FAANG stock will have a 'blowout' quarter.Plus, Momo calls popular; one company's wild earnings release; and Overstock hits fresh highs.
Among the stocks with unusual options volume is Chinese social networking concern Momo Inc (NASDAQ:MOMO), as the company prepares to report earnings before the open next Tuesday. Calls are trading at three times the expected pace, outpacing puts by a rate of more than 3-to-1. The weekly 11/24 34-strike call is seeing notable volume and new positions are being opened. If buy-to-open activity is taking place, the bulls are betting on MOMO stock rising above $34 by Friday's close, when the contracts expire, whereas sell-to-open action would be betting on the shares holding below the level this week. The equity was last seen trading 5.5% higher at $32.94, though it's well below its August highs near $47.
One of the top stocks on the New York Stock Exchange is construction and engineering firm Dycom Industries, Inc. (NYSE:DY), despite the company's earnings debacle. DY shares have so far added 9.4% to trade at $98.47, putting them on pace for their best close since their May bear gap.
Over on the Nasdaq, online retailer Overstock.com, Inc. (NASDAQ:OSTK) is outperforming once again, adding 9% to trade at $57.10, and earlier hitting another 12-year high of $58.25. As recently as Aug. 4, OSTK stock was trading below $15 a share.
