Trade Anxieties Reignited as Dow Reverses Course
The DJI was up more than 150 points earlier
The Dow Jones Industrial Average (DJI) has reversed course at midday, erasing early gains sparked by China's announcement that it might retract car-buying restrictions to boost consumption. Investors are also digesting mixed signals on the trade front, after a spokesperson for China's Foreign Ministry reiterated today they were unaware of phone calls between the two countries described by U.S. President Donald Trump. However, a rally in Johnson & Johnson (JNJ) stock is limiting the Dow's deficit. Against this backdrop, the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) have also turned lower.
Continue reading for more on today's market, including:
Why options bears might want to check out this oil stock. The video game stock that just made Wedbush's "Best Ideas" list. Plus, Yelp's new features have options bulls circling; Ossen Innovation extends red-hot rally; and quarterly losses bruise LAIX stock.
Options bears are bombarding online review platform Yelp Inc (NYSE:YELP), after it said it will be introducing new features today, including personalization functionality that allows the user to customize the app to suit their personal preferences. So far, 17,000 calls have crossed the tape -- 10 times the intraday average -- compared to only 719 puts. Most of this activity is centered around the weekly 8/30 33-strike call, with many of these contracts being bought to open. YELP stock is up 2.8% at $32.93 so far, which means these traders are expecting even more upside for the equity by the time this contract expires at the end of this week.
One of the best stocks on the Nasdaq today is Ossen Innovation Co Ltd (NASDAQ:OSN), after the Chinese steel manufacturer reported well-received earnings for the first half of the year. The stock is 76.1% higher at $5.81 -- eyeing its ninth straight win and its highest close since January 2018.
China-based AI creator LAIX Inc (NYSE:LAIX) is one of the worst performers on Wall Street today, down 17.6% at $6.60, after saying its second-quarter top line was impacted by a "tightened WeChat Moments sharing policy." In addition, CFO Bin Yu plans on stepping down from her position, but will continue to fulfill the role until a suitable replacement is hired. LAIX stock hit a new record low of $5.35, and is set for its lowest close since going public in late September.
