Dow Jones Industrial Average Turns Lower After Tapping New High

Analyst: 'Sell the News' on Valeant

Feb 16, 2017 at 11:50 AM
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The Dow Jones Industrial Average (DJIA) edged up to yet another record intraday high just after the open -- as did the S&P 500 Index (SPX) and Nasdaq Composite (COMP) -- before dropping back into the red. Stocks are taking a breather today after all three major indexes finished their fifth straight day at all-time closing highs Wednesday. Traders are digesting a mostly upbeat round of economic data, but the Federal Reserve remains in focus following hawkish comments from Fed Vice Chair Stanley Fischer this morning, with this week's testimony from Fed Chair Janet Yellen keeping interest-rate considerations in the spotlight.

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

  • Analyst: "Sell the news" on Valeant Pharmaceuticals Intl Inc (NYSE:VRX).
  • 2 overlooked stocks hovering near record highs.
  • Plus, Barrick Gold options pop after earnings, Kate Spade takes off on buyout buzz, and the healthcare stock plummeting on a surprise loss.

Midday Market Stats February 16

Mining concern Barrick Gold Corporation (USA) (NYSE:ABX) is among the stocks with unusual options volume at midday. The shares are 6.1% at $20.50 after a well-received earnings report was met with price-target hikes from analysts. ABX calls are trading at triple the expected intraday rate, as traders cash in on the post-earnings volatility crush, with the stock's 30-day at-the-money implied volatility hitting an annual low of 32%. The most active strike so far is the March 20 call, where at least a few traders appear to be purchasing new positions, betting on ABX to maintain its foothold above the round $20 mark through March expiration.

Among the top performers on the New York Stock Exchange today is Kate Spade & Co (NYSE:KATE). The retailer has tacked on 10.6% to $21.75 on strong earnings and news the company is considering "strategic alternatives," adding credence to recent buyout rumors.

Molina Healthcare, Inc. (NYSE:MOH) is one of the worst performers on the Big Board, meanwhile. A surprise quarterly loss met by bearish brokerage attention has MOH down 17.9% at $49.15, giving up the support of its 40-day moving average, and on track for its lowest close in three months.

MOH Daily Chart February 16

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