Dow Jones Industrial Average Pops as Oil Rally Lifts Stocks

2 Stocks Moving Ahead of Monster FDA Decisions

Josh Selway

Apr 6, 2016 at 12:19 PM

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PFE
SPX
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CREE
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The Dow Jones Industrial Average (DJIA) is eyeing its first win of the week, as U.S. stocks track rising oil prices. Specifically, May-dated crude futures have extended their lead to 4.7% to sit at $37.54 per barrel, thanks to an unexpected decrease in domestic inventories last week. In addition, Pfizer Inc. (NYSE:PFE) is bolstering the Dow, up 3.6% after abandoning its bid for Allergan plc Ordinary Shares (NYSE:AGN). The S&P 500 Index (SPX) and Nasdaq Composite (COMP) have also followed the Dow higher, though traders still have the Federal Open Market Committee's (FOMC) meeting minutes to consider this afternoon.

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

Optimism is building ahead of huge FDA decisions for Sarepta Therapeutics Inc (NASDAQ:SRPT) and this medical device maker.
Options bulls are smothering this tech stock after it called out a rival's "unlawful abuse of dominance."
Plus ... Checking in on the CBOE Volatility Index (VIX), the SPDR S&P 500 ETF Trust (SPY), and stocks on the move at midday.

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Among the stocks with unusual call volume is tech stock Rackspace Hosting, Inc. (NYSE:RAX), which is 5.8% higher today at $23.46. The contracts are crossing at a remarkable 34 times the average midday pace, with the May 25 call leading the way. Data confirms buy-to-open activity here, meaning traders are betting on RAX toppling $25 before the options expire at the close on Friday, May 20. The stock has been surging recently in light of M&A buzz.

Social networking stock Momo Inc (ADR) (NASDAQ:MOMO) is one of the top performers on the Nasdaq today, thanks to info from a new Securities and Exchange (SEC) filing. The stock has now added 31.2% to rest at $15.80, but today's rally appears to be stalling just shy of MOMO's year-to-date breakeven mark near $16.

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One of the Nasdaq's worst performers today is lighting specialist Cree, Inc. (NASDAQ:CREE). The stock was last seen 14.8% lower at $24.74, as a disappointing preliminary quarterly outlook weighs on the shares. CREE is now down 29.4% in the past 12 months.

The CBOE Volatility Index (VIX) is down 0.8 point, or 5%.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.57, as puts outnumber calls. The SPY is up 1.3 points, or 0.6%, at $205.50.

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