Dow Jones Industrial Average Slips, S&P, Nasdaq Touch New Highs

The Big Biotech Breakout (and Breakdown) to Watch Today

Aug 1, 2016 at 12:22 PM
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The Dow Jones Industrial Average (DJIA) briefly turned higher after a morning drop, as stocks reacted to data from both the Institute for Supply Management (ISM) and Markit, which indicated continued expansion among U.S. manufacturers in July. In addition, the the S&P 500 Index (SPX) notched yet another all-time intraday high to kick off the historically bearish month of August. However, both the Dow and S&P have given up those gains at midday, led lower by energy stocks, with September-dated crude oil futures dropping 3.1% to $40.31 per barrel. On the other hand, the Nasdaq Composite (COMP) is bucking the trend yet again, and earlier touched a new annual high.  

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Midday Market Chart 080116

Among the stocks with unusual option volume is online retailer Etsy Inc (NASDAQ:ETSY), with options trading at eight times their usual intraday clip, and calls leading puts by a margin of nearly 4-to-1. ETSY is due to report earnings tomorrow, and was last seen up 14.7% at $11.54, thanks to a fresh "buy" rating.

Solar energy stock Trina Solar Limited (ADR) (NYSE:TSL) is among the best performers on the New York Stock Exchange today, after the company agreed to be taken private for $1.1 billion. TSL is up 27.9% at $10.53, and is on pace to close above its 20-week moving average for the first time since March.

TSL 20 week MA 080116

Biotech ADMA Biologics Inc (NASDAQ:ADMA) is among the worst performers on the Nasdaq today, currently down 18.3% at $6.41, after the Food and Drug Administration (FDA) rejected ADMA's new drug, RI-002. As a result, ADMA received two downgrades, and Ladenburg Thalmann slashed its price target by $5 to $12.50. 

The CBOE Volatility Index (VIX) is up 4.9%, or 0.6 point, at 12.45.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.89, with puts outpacing calls. SPY is fractionally lower at $217.05. 

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