Dow Fights for Gains as Traders Weigh Earnings, GDP
Oil prices are reeling on comments from President Trump
Despite first-quarter gross domestic product (GDP) growth that exceeded expectations, the Dow Jones Industrial Average (DJI) has traded on both sides of breakeven today. The index was last seen modestly higher, though, even as blue chips Exxon Mobil (XOM) and Intel (INTC) tank after earnings. Meanwhile, the Nasdaq Composite (IXIC) isin the red, as a sell-off in chip stocks overshadows an earnings win from Amazon (AMZN). Oil prices are also notably lower, after President Donald Trump said he told the Organization of the Petroleum Exporting Countries (OPEC) to temper fuel costs. At last check, front-month crude futures were down 3.3% at $63.07 per barrel.
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Sell this shipping stock on macro risk, says analyst. The food delivery stock on a tear after earnings. Plus, options traders pile on puts ahead of Mondelez earnings; the vet stock jumping on buyout buzz; and Monotype stock slides on disappointing earnings report.
Mondelez International (NASDAQ:MDLZ) is seeing unusual options volume today, with nearly 6,600 puts across the tape so far -- seven times the average intraday volume. The May 47.50 put -- which encompasses MDLZ's first-quarter earnings on April 30 -- is by far the most popular, with a large chunk of contracts being bought to open. At last glance, the Oreo name was up 0.2% at $50.11, and just touched a new record high of $50.70 earlier this week.
Veterinary pharmaceutical name Aratana Therapeutics Inc (NASDAQ:PETX) is near the top of the Nasdaq today, on news that Elanco Animal Health (ELAN) wants to buy the drugmaker for $245 million, or $4.75 per PETX share. PETX has surged 37% to $4.70 as a result, set for its best day ever. Plus, the equity is eyeing its highest close since an early January bear gap, set to finish atop the 100-day moving average for the first time since the drop.
Font concern Monotype Imaging Holdings Inc. (NASDAQ:TYPE) is one of the worst performers on the Nasdaq today. The stock is down 17.6% at $16.95, after unveiling first-quarter earnings and revenue that fell below analysts' estimates. The company reiterated its full-year guidance, however. Today's plummet has TYPE trading back below the $17.50 area for the first time since its mid-February bull gap.