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Hopes For Dow Jones Industrial Average 20,000 Dashed by Ho-Hum Data

The Drugmaker Down 50%; Plus, the 'Best Idea' for 2017

Dec 22, 2016 at 12:00 PM
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The Dow Jones Industrial Average's (DJIA) journey toward the 20,000 level continues to run into speed bumps, with the index down at midday. Stocks are reacting to a raft of mixed economic data that hit the Street this morning. Most recently, consumer spending rose less than expected in November, while personal income was flat -- the first time in nine months it hasn't risen -- casting a shadow on fourth-quarter economic growth.

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

midday market stats dec 22

Among the stocks with unusual call volume at midday is fashion firm Michael Kors Holdings Ltd (NYSE:KORS), with the contracts speeding at 12 times the usual intraday rate. Based on Trade-Alert, one speculator rolled down a 10,000-contract position of January 2017 52.50-strike calls to the 50 strike, tempering his short-term expectations on the stock. At last check, KORS is down 2.4% at $43.13.

Micron Technology, Inc. (NASDAQ:MU) is the biggest gainer on the Nasdaq so far today, jumping 13.5% to trade at $23.35, and earlier hitting an annual high of $23.49. Sparking the rally was the chipmaker's strong earnings report, which was followed by bullish analyst attention.

mu daily dec 22

Red Hat Inc (NYSE:RHT) is faring the worst on the New York Stock Exchange (NYSE), pounded by a gloomy outlook, CFO departure, and a round of bearish analyst notes. So far, the tech stock has surrendered 12.2% at $70.02, and has found a place on the short-sale restricted list.

The CBOE Volatility Index (VIX) is up 0.3 point, or 2.8%, at 11.59.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.29, with puts more than doubling calls. At last check, SPY is 0.7 point, or 0.3%, lower at $225.04.

Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap

 

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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