Dow, S&P Lower on Fed Anticipation

The central bank isn't expected to lift interest rates

Managing Editor
May 2, 2018 at 12:03 PM
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Building anticipation ahead of this afternoon's Fed policy decision is overshadowing an Apple (AAPL) earnings beat, with the Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) lower at midday. In addition, Travelers (TRV) stock is slipping amid insurance-sector woes, further weighing on the blue-chip index. The Nasdaq Composite (IXIC) is modestly higher, however, struggling to stay above breakeven.

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

  • Analyst: Sell this sinking social media stock.
  • This Apple supplier is soaring ahead of earnings.
  • Plus, TAP's unusual options volume; Wayfair stock's fresh boost; and the drug company accused of "blatant fraud."

Midday Market Stats May 2

One stock seeing unusual options volume today is brewing concern Molson Coors Brewing Company (NYSE:TAP). The stock is seeing a surge in options trading following the company's weak first-quarter earnings report. So far, roughly 13,000 calls and 8,000 puts have traded -- 28 times what's typically seen at this point in the day, and pacing for the busiest options day in at least a year. It looks like some traders may be liquidating the now in-the-money May 67.50 put. The stock was last seen down 12% at $63.04, fresh off a three-year low of $62.01, making its way to the short-sale restricted list.

One notable winner on the New York Stock Exchange (NYSE) is Wayfair Inc (NYSE:W), after the firm reported solid first-quarter revenue. W stock was last seeing trading up 11.5% at $72.57, but is still staring up at its 50-day moving average.

Daily Chart of W Since May with 50 MA

Pharma concern Akorn, Inc. (NASDAQ:AKRX) is one of the Nasdaq's worst performers, after German healthcare group and former Akorn suitor Fresenius claimed it uncovered "blatant fraud at the very top level." The stock was down 9% at $13.41, at last check, and touched a four-year low of $12.40 on April 23, after Fresenius abandoned its Akorn bid.

 

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