Dow Jones Industrial Average Dives as Tech Gets Hammered

2 Drug Stocks Rallying to New Highs

Jul 6, 2017 at 11:59 AM
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The Dow Jones Industrial Average (DJIA) is trading deep in negative territory at midday, as investors consider the latest economic data and the ongoing sell-off in tech stocks. For starters, this morning's ADP jobs report for June missed estimates, sending up ominous signals ahead of Friday's closely watched payrolls report, while weekly jobless claims also came in higher than expected. On the other hand, Energy Information Administration data revealed a bigger-than-forecast drop in domestic crude inventories last week, which has pushed August-dated oil futures up 2.8% to $46.37 per barrel. 

Looking at the tech sector, a number of notable names are getting hit, including Dow stocks Microsoft and Apple, the former of which just announced plans to lay off up to 3,000 workers. As such, the Nasdaq Composite (COMP) is on pace for its lowest close since May 19. 
 
Continue reading for more on today's market -- and don't miss:

  • 2 drug stocks rallying to new highs. 
  • The FDA setback sinking Merck stock
  • Plus, PayPal attracts put players; a rallying auto parts stock; and another bad day for Blue Apron stock. 

midday market stats july 6

Among the stocks with unusual options volume today is digital payments platform Paypal Holdings Inc (NASDAQ:PYPL). Puts are trading well above the expected pace for this point in the day, thanks mostly to heavy activity at the weekly 7/7 52-strike put. Data suggests buy-to-open activity here, so options traders are betting on PYPL stock closing below $52 at tomorrow's close, when the contracts expire. PayPal shares were last seen trading down 2.2% at $53.40. 

One stock outperforming on the Nasdaq is brake system manufacturer Sorl Auto Parts, Inc. (NASDAQ:SORL), even as auto parts retailers extend yesterday's plunge. SORL shares enjoyed a huge rally back in May, eventually peaking at $9.74 before pulling back to their 50-day moving average. At last check, SORL stock was up 8.3% at $7.72. 

sorl auto parts stock

Over on the New York Stock Exchange, meal delivery service Blue Apron Holdings Inc (NYSE:APRN) earlier hit a record low of $8.16, and was last seen down 7.2% at $8.20. The day of its June 29 IPO, Blue Apron stock hit a high of $11, but is now on pace to close lower for the third time in five sessions. 

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