Traders are digesting high-profile M&A developments
U.S. stocks are pushing higher today, with the Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and Nasdaq Composite (IXIC) all reaching record highs. Traders have digested some major M&A developments, including Sprint's (S) decision to end takeover talks with T-Mobile (TMUS), as well as a possible merger of two Apple suppliers. The high-profile arrests in Saudi Arabia remains in focus, as well, and oil prices continue to rise. At last check, December-dated crude futures were up 2% at $56.77 per barrel, marking fresh two-year highs. Wall Street's attention should quickly turn back to earnings, though, with plenty of noteworthy names ready to report this week.
Continue reading for more on today's market, including:
- 2 chip giants teaming up against Nvidia.
- Analyst: Cree stock could surge another 32%.
- Plus, pre-options volume hot on this video game stock; a billionaire's drug investment; and a small-cap tech stock getting hammered.
Among the stocks with unusual options volume is Take-Two Interactive Software, Inc. (NASDAQ:TTWO), as the video game producer gets ready to report earnings after the close tomorrow. At last check, put volume was running at 11 times the expected pace, with the bulk of the action coming in the form an apparent bearish put spread. Specifically, it appears one trader sold to open 1,500 weekly 11/10 100-strike puts and bought to open 1,150 11/10 108-strike puts, betting on TTWO stock to end below $108 -- but above $100 -- by this Friday's close, when the weeklies expire. The stock was last seen trading at $107.79, down 1.1%, and this options activity goes against the previous call-heavy behavior.
One stock making a big move on the NYSE today is drug concern Teva Pharmaceutical Industries Ltd (NYSE:TEVA), as it tries to bounce back from last week's brutal post-earnings sell-off. At last check, TEVA shares were up 6.1% at $12.09, with buzz of a potential stake from billionaire Leonard Blavatnik also providing a lift. Of course, this provides little solace for long-term TEVA shareholders, since the equity was trading above $40 this time last year.
Over on the Nasdaq, Energous Corp (NASDAQ:WATT) stock earlier hit a 52-week low of $7.07, and was last seen 11.6% lower at $7.15. There's no specific news accounting for today's sell-off, but the shares have been struggling even since it became clear Apple wasn't using the company's technology in September.
