The DJIA is putting in strong gains after this morning's GDP data
The Dow Jones Industrial Average (DJIA) is rallying hard despite a slow start, as stocks gain following strong economic data. Most notably, the final reading on fourth-quarter gross domestic product (GDP) was revised higher, with the U.S. economy growing 2.1% during the period. Traders are also keeping a close tab on speeches from regional Fed presidents, with Cleveland Fed President Loretta Mester this morning saying, "If economic conditions evolve as anticipated ... increases in the fed funds rate will be needed." Rising oil prices are adding to the bullish backdrop as well, with May-dated crude futures up 1.7% at $50.33 per barrel. While energy and bank stocks guide the Dow and S&P 500 Index (SPX) higher, the tech-heavy Nasdaq Composite (COMP) is on pace for a fifth straight win and a record closing high.
Continue reading for more on today's market -- and don't miss:
- Analysts: 2 Apple suppliers destined for new highs.
- Why it's time to buy calls on this IT stock.
- Plus, options traders bet on new highs for Universal Display; a tech stock surging on M&A news; and LULU's terrible day.
Among the names seeing accelerated options trading is Universal Display Corporation (NASDAQ:OLED), with the display specialist up another 5% today to trade at $88.90, earlier hitting a record high of $89.95. Options traders are betting on extended upside, too. Calls are trading at four times the expected intraday pace, led by buying at the April 90 and 95 calls. Further down the list, longer-term traders are targeting the May and September 100 calls, possibly anticipating a move to triple-digit territory from OLED stock.
One big gainer on the Nasdaq is networking infrastructure specialist Extreme Networks, Inc. (NASDAQ:EXTR), after the company agreed to buy Brocade Communications Systems, Inc.'s (NASDAQ:BRCD) data center networking business for $55 million in cash, following Broadcom Ltd's (NASDAQ:AVGO) buyout of BRCD. Craig-Hallum raised its price target to $12.50 on EXTR, while Wunderlich raised its target to $9. EXTR stock was last seen 18.6% higher at $7.66, after earlier hitting a three-year high of $8.11, and now sports a 12-month gain of over 146%.
Meanwhile, Lululemon Athletica inc. (NASDAQ:LULU) continues to sink on the Nasdaq following its disappointing earnings and outlook, last seen 22% lower at $51.56, earlier touching an annual low of $51.12. Looking back, LULU shares have now shed 37% since their August high above $81.
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