Bouncing Tech Fuels Upside for Stocks
Apple and Cisco are two of the best Dow stocks at midday
The Dow Jones Industrial Average (DJI) is trading in positive territory at midday, as big gains for Apple (AAPL) and Cisco Systems (CSCO) highlight a bouncing tech sector. This is helping offset a dismal Empire State manufacturing index, which fell into contraction territory for the first time in two years in June, while a separate report from the National Association of Home Builders showed homebuilder confidence unexpectedly fell last month. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are up, as well, in what looks to be an up day for the U.S. stock market.
Continue reading for more on today's market, including:
Behind Disney's first downgrade in a year.Why Jefferies set a Street-high price target on Starbucks.Plus, Transocean bulls bet on bigger bounce; M&A buzz has BID booming; and the drug stock up 50%.
Transocean LTD (NYSE:RIG) is seeing unusual options activity today, with around 16,000 calls on the tape so far -- nearly four times what's typically seen at this point, and 10 times the number of puts traded. Buy-to-open activity is detected at the June 5.50 call, as speculators bet on the energy shares to move even higher through front-month options expiration at the close this Friday, June 21. After tagging a record low of $5.28 on Friday, RIG stock is up 1.6% at $5.50.
Sotheby's (NYSE:BID) is at the top of the New York Stock Exchange (NYSE) today, on news the auction house is being taken private by BidFair USA -- a company owned by Altice founder Patrick Drahi -- for $57 per share, compared to BID's closing price last Friday at $35.39. In reaction, Sotheby's stock is up 57.5% at $55.73, not far from its intraday peak of $55.90.
ContraVir Pharmaceuticals Inc (NASDAQ:CTRV) is outperforming on the Nasdaq this afternoon, thanks to positive data for the company's nonalcoholic steatohepatitis (NASH) drug, CRV431. This is just the latest in a number of volatile moves CTRV stock has made this month, with the shares last seen up 50.7% at $13.40, trading near familiar resistance at their 80-day moving average.
