Stocks Stay Hot to Start 2018
U.S. stocks are broadly higher halfway through the first trading day of 2018. While the Dow Jones Industrial Average (DJIA) has pared much of its triple-digit lead, the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are holding their early gains as tech and energy stocks outperform. Adding to the risk-on bias is the Markit purchasing managers manufacturing index (PMI) for December, which revealed the strongest U.S. manufacturing growth in almost three years. Investors could also be reacting to a raft of analyst attention on high-profile stocks, as Wall Street adjusts to the new year.
Continue reading for more on today's market, including:
The blockchain stock getting rocked today. Analyst: Buy this Dow stock for 2018. Plus, put players pile on one retail stock; a soaring gene editing stock; and a biotech getting bashed.
Among the stocks with unusual options volume is retailer Express, Inc. (NYSE:EXPR), with puts trading at 29 times what's typically seen. The shares are down 4.8% today at $9.67, and one options trader is apparently expecting more weakness ahead, buying to open 5,850 January 2018 10-strike puts for 70 cents each. This would put the speculator's total cash outlay at $409,500, as he or she is hoping EXPR stock sinks even further below $10 in the coming weeks.
The top performer on the Nasdaq is Switzerland-based gene editing specialist Crispr Therapeutics (NASDAQ:CRSP). The stock was last seen trading up 14.5% at $26.89, earlier hitting a record high of $26.97, and while there's no specific news behind the move, the shares made a similar upward surge last Friday. Since its May low of $13.50, CRSP stock has nearly doubled.
One of the worst performers on the Nasdaq is biotech TESARO Inc (NASDAQ:TSRO), dropping 8.8% today to trade at $75.54. The shares are responding to bearish attention from Cowen and Piper Jaffray, which both lowered their price targets to $80. TSRO stock earlier touched an annual low of $74.57, and has now shed 60.9% since its highs from last February.