IBM Stock Keeps a Lid on Dow Jones Industrial Average

Analyst: 'Undervalued' Tech Stock Headed for Record Highs

May 5, 2017 at 11:54 AM
facebook X logo linkedin

The Dow Jones Industrial Average (DJIA) has spent the entire session trading in negative territory, pressured by a Warren Buffett-related drop for IBM stock. Stocks are also reacting to this morning's stronger-than-forecast jobs data -- which could strengthen the Fed's case for a June rate hike -- as well as bouncing oil prices, with June-dated crude futures last seen up 1.9% at $46.42 per barrel. And while the S&P 500 Index (SPX) and Nasdaq Composite (COMP) have explored both sides of breakeven, the moves have been modest ahead of this weekend's French presidential election. Nevertheless, the SPX and COMP are on track to close higher on the week, though the Dow could be at risk of a weekly loss.

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

  • Analyst: This "significantly underappreciated and undervalued" tech stock is headed for record highs.
  • A dreary end to Valeant Pharmaceuticals Intl Inc's (NYSE:VRX) good week.
  • Plus, ATVI's volatility crush; Monster stock pops; and earnings level Fluor.

stock market may 5

Among the names with accelerated options activity is video game maker Activision Blizzard, Inc. (NASDAQ:ATVI), with 56,434 contracts traded -- 18 times what's typically seen, and volume on track to settle in the 100th annual percentile. ATVI stock is fresh off a post-earnings record high of $54.75 -- last seen up 0.8% at $53.52 -- and its 30-day at-the-money implied volatility has plunged 35.4%. The May 55 call is most active, where traders appear to be selling to close their positions.

Monster Beverage Corporation (NASDAQ:MNST) is one of the biggest gainers on the S&P 500 Index (SPX), with the shares up 4.5% at $48.00, and on track to close north of their 200-day moving average for the first time since late October. Although the beverage maker's first-quarter earnings fell short of estimates, Jefferies reiterated its upbeat "buy" rating and $63 price target on MNST stock -- in uncharted territory.

mnst stock daily price chart may 5

Fluor Corporation (NYSE:FLR) is the leading laggard on the SPX, after the construction company's reported a first-quarter earnings miss and slashed its full-year profit forecast. Adding to the bearish bias is a price-target cut to $55 from $58 at D.A. Davidson, with FLR stock last seen trading down 7.1% at $46.99.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI