Upbeat Earnings Spark Stock Rally

One Facebook options trader had impeccable timing yesterday

by Josh Selway

Published on Apr 26, 2018 at 12:11 PM

The Dow Jones Industrial Average (DJI) is pushing higher at midday, thanks to a post-earnings rally from Visa (V) and a strong move from Home Depot (HD). Chipotle (CMG) -- the best S&P 500 Index (SPX) stock today -- and Facebook (FB) continue to gain after earnings, as well, lifting equities across the board. A dip below the 3% mark from the 10-year Treasury yield is likely only adding to the risk-on backdrop. As such, the Dow is set for a second straight up day, throwing support behind this historical buy signal.

Continue reading for more on today's market, including:

us stock futures for april 26

Facebook Inc (NASDAQ:FB) options volume is unsurprisingly accelerated today as the stock rallies after earnings, last seen trading up 8.3% at $172.93. But it's worth calling attention to one trader who bought 11,000 July 175 calls for $3.50 each. These calls have more than doubled, and as such, this trader is now sitting on roughly $4 million in paper profits, according to Trade-Alert. Sentiment among options traders had actually been somewhat bearish on FB before earnings.

One of the best performing Nasdaq stocks today is Citrix Systems, Inc. (NASDAQ:CTXS), thanks to upbeat earnings. CTXS shares earlier hit a record high of $102.88, and were last seen trading up 5.4% at $101.84. They've added 21% year-over-year, but analysts remain mostly bearish

Lendingtree Inc (NASDAQ:TREE), on the other hand, is one of the worst Nasdaq stocks today. Shares of the lending company have plummeted 13.4% to trade at $265.85 -- putting them on pace for their lowest settlement since mid-November and the first below their 200-day moving average in over a year. The sell-off comes after the company reported lower-than-expected adjusted first-quarter profit, though revenue beat.

tree stock


a schaeffer's exclusive

5 NEW STOCK PICKS

We're celebrating 38 years with this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
RBS Stock Rises on New CEO Appointment
Alison Rose will be the first woman to serve as CEO to a major British lender
2 Energy Stocks Snap Back After Heavy Losses
Energy stocks CRC and MDR are rallying back from brutal selling earlier in the week
How the 2020 Election Will Affect the U.S. Economy
The 2020 election could see some major changes in the American economic system.