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Dow Jones Industrial Average, S&P, Nasdaq Tag New Highs

Buy Calls On This Blue Chip

Feb 9, 2017 at 12:09 PM
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The Dow Jones Industrial Average (DJIA) has been climbing since the open, and tapped an all-time intraday high of 20,196.58 earlier, as traders digest a surprise drop in weekly jobless claims and parse the latest round of corporate earnings. The S&P 500 Index (SPX) and Nasdaq Composite (COMP) are also barreling higher, with both hitting record intraday highs.

Giving stocks a boost was an announcement from the White House, in which President Donald Trump promised to unveil a major tax plan -- which Trump called "phenomenal" -- within a few weeks. Also lifting shares are dovish comments from St. Louis Fed President James Bullard, who said, "The prerequisites for meaningfully higher inflation do not seem to have materialized so far," adding that interest rates "can also remain relatively low over the forecast horizon." Meanwhile, energy stocks are enjoying a lift from crude's rebound, with March-dated oil futures up 1.1% at $52.93 per barrel.

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

  • It could be time to buy calls on this blue chip, if history is any indicator.
  • Prime options buying opportunities on 2 outperforming 3-D printing stocks.
  • Plus, Regeneron call writers hit the exits, a cybersecurity earnings beat, and Cree gives up a key trendline.

Midday Market Stats February 9

Drug stock Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is among the names with unusual options volume today. The stock is up 2% at $360.48 after a legal victory for its cholesterol drug, as well as an earnings beat. REGN calls are trading at five times the average intraday rate, with more than 4,500 on the tape so far, and options volume is on track to snag a new annual high. Most active by a wide margin is the weekly 2/10 370-strike call, where it looks like some previous skeptics may be buying to close their positions. The weekly series is particularly popular ahead of tomorrow's expiration, accounting for eight of REGN's 10 most active strikes.

Cybersecurity concern Imperva Inc (NASDAQ:IMPV) is among the top performers on the Nasdaq, up 8.7% at $46.62 after blowing past earnings expectations and garnering several price-target hikes. The company also reported the sale of its Skyfence product line, as well as a fresh acquisition.

Among the worst performers on Nasdaq, meanwhile, is lighting specialist Cree, Inc. (NASDAQ:CREE). The shares have shed 6.4% to trade at $26.15, after the company's nine-figure sale of its Wolfspeed Power unit was put in doubt on concerns it may be blocked by regulators. The drop also has CREE on track to close below its formerly supportive 30-day moving average for the first time since early November.

CREE Daily Chart February 9

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