Stocks Explode to Record Highs as Earnings Impress
A tech rally and a relatively strong batch of corporate earnings are lifting U.S. stocks today. The Dow Jones Industrial Average (DJIA) is well into triple-digit-gain territory, and the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are rallying impressively, as well, with all three benchmarks notching record highs. The major indexes are on pace for back-to-back wins, even as trading volumes remain light during the holiday-shortened week. What's more, the S&P topped 2,600 for the first time ever, and if recent Thanksgiving-week history is any indicator, stocks could rally again tomorrow.
Continue reading for more on today's market, including:
The biotech stock in a tailspin today. Analysts chime in on Time Warner, AT&T merger mayhem. Plus, call buyers take on Square; the Chinese stock that's tripled in the past month; and another downer for Campbell Soup.
Among the stocks with unusual options volume is Square Inc (NYSE:SQ), as the shares earlier hit a fresh record high of $46.97. Call volume is at almost twice the expected rate so far, with the December 45 and 50 calls seeing heavy trading. The weekly 11/24 45- and 47-strike calls are also popular. Those buying the December calls are betting on SQ stock extending its run higher over the next month, while weekly call buyers are hoping to see more upside by week's end, when the contracts expire. Square stock is up roughly 85% in the past three months alone, and was last seen 3.8% higher at $46.93.
One of the top stocks on the Nasdaq is China-based cloud computing specialist Xunlei Ltd (NASDAQ:XNET). The shares have exploded higher in recent weeks, more than tripling in the past month alone. Today, XNET stock was last seen 15.9% higher at $22, earlier hitting an all-time high of $23.42.
A big loser on the New York Stock Exchange is Campbell Soup Company (NYSE:CPB), as the stock drops 6.7% to trade at $46.60, due to yet another disappointing earnings release. CPB stock has shed almost one-fourth of its value in 2017, but remains above the $45 level that's acted as stiff support since September.