MMR

SPX, COMP Hit New Highs; Dow Jones Industrial Average Climbs

The Biotech Down 80%; Plus, SPX, COMP Hit Highs

Apr 27, 2015 at 11:49 AM
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Ahead of Apple Inc.'s (NASDAQ:AAPL) big event this evening, the Dow Jones Industrial Average (DJIA) is sitting on modest gains. Also higher are the Nasdaq Composite (COMP) and S&P 500 Index (SPX), with the former hitting a fresh 15-year peak, and the latter touching a new all-time high. While the lone report on the economic calendar, the Dallas Fed manufacturing index, missed expectations, traders' hopes remain high going into a busy week.

Continue reading for more on today's market -- and don't miss:

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Among the stocks with notable option activity is Sprint Corp (NYSE:S), with both calls and puts crossing at a much faster-than-usual pace. The most popular option is the May 5.50 call, thanks to an 8,119-contract sweep initiated by one trader. It appears the contracts were bought to open, meaning the speculator anticipates shares of the telecom firm will topple $5.50 -- for the first time since early November -- before the options expire at the close on Friday, May 15.

Tesla Motors Inc (NASDAQ:TSLA) is nearly the top gainer on the Nasdaq today, tacking on 6.2% to trade at $231.94. This is the first time shares of the automaker have touched $230 since early December, and they are also on pace to close above their 50-week moving average for the first time in 2015.

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Akorn, Inc. (NASDAQ:AKRX) is one of the biggest decliners on the Nasdaq today. The pharmaceutical stock has given back roughly one-fifth of its value to trade at $43.85, after the company announced it will be restating financial reports from three previous quarters (as well as its 2014 year-end statement) due to inaccurate revenue figures. On top of that, J.P. Morgan Securities cut it price target to $58 from $61, while Piper Jaffray downgraded the stock to "neutral" and lowered its price target to $53 from $66, citing "credibility questions."

The CBOE Volatility Index (VIX) is up 0.1 point, or 0.9%, at 12.40.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.12, with puts outstripping calls. SPY was last seen up 0.6 point, or 0.3%, at $212.21.

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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