The DJIA traded lower in early action on disappointing Disney earnings and the dismissal of James Comey
The Dow Jones Industrial Average (DJIA) spent the morning trading lower amid post-earnings pressure from Disney stock. Uncertainty surrounding the White House's abrupt firing of FBI Director James Comey also weighed on stocks in early trading, though surging oil prices have pulled the Dow off its session lows and have the S&P 500 Index (SPX) flirting with positive territory. In fact, June-dated crude futures have jumped 3.2% to trade at $47.34 per barrel, after data showed a sharper-than-expected drop in domestic crude supplies. Elsewhere, the VIX is continuing to hover near historically low levels, on track for a third consecutive close in single digits.
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Among the names with accelerated options activity is Snap stock, with the contracts crossing at three times the expected intraday rate. With SNAP earnings due after the close -- the first time the Snapchat parent will unveil its quarterly results since going public in March -- the weekly 5/12 series is hot, accounting for six of the 10 most active options. One SNAP options trader may be hoping for a post-earnings volatility crush, as it looks like 15,000 weekly 5/12 24.50-strike calls were sold to open earlier. SNAP stock was last seen trading down 1.1% at $23.06.
Yelp stock is one of the biggest decliners on the NYSE, down 19.1% at $28.07. The online review site's disappointing first-quarter revenue and current-quarter forecast were met with bearish backlash from the brokerage bunch, and now YELP shares are easily on track to close south of their 320-day moving average for the first time since June 29.
Array Biopharma shares have turned in one of the best performances of Nasdaq components so far, up 23.7% at $8.68. Boosting ARRY stock is an upbeat earnings report and positive drug data for the biotech's melanoma treatment. Nevertheless, Array Biopharma is still in the red on a year-to-date basis.