Dow Eyes Sixth Straight Gain on Cooling Inflation

Easing concerns about Fed rate hikes are boosting stocks

Managing Editor
May 10, 2018 at 11:59 AM
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U.S. stocks are trading higher at midday, with investors digesting this morning's weaker-than-anticipated inflation data, which is easing concerns about the pace of Fed rate hikes. The Dow Jones Industrial Average (DJI) is up triple digits, pacing for a sixth straight win, which would mark its longest winning streak since February. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also higher, while the Cboe Volatility Index (VIX) -- or the stock market's "fear gauge" -- is set for a sixth straight loss.

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

  • The biotech buried by a failed drug study
  • Analyst: Don't buy this underperforming oil stock
  • Plus, ROKU's earnings reaction; the biotech that saw revenue triple; and how Fortnite has one stock up 76%.

Midday Market Stats May 10

One stock sporting unusual options volume today is streaming name Roku Inc (NASDAQ:ROKU). So far, roughly 35,000 calls have traded -- eight times what's typically seen at this point in the day. Seeing the most action are the weekly 5/11 40-strike and June 34 calls, where more than 5,300 total contracts have been exchanged. This surge in volume comes just after the company reported a narrower-than-expected first-quarter loss, and better-than-expected revenue. ROKU stock is up 2% to trade at $36.85, at last check, and has picked up 18% over the past week alone.

Near the top of  the New York Stock Exchange (NYSE) is genetic information concern InVitae Corp (NYSE:NVTA), after the company reported first-quarter revenue that nearly tripled. The stock also received a price-target hike from Leerink to $12 from $10 -- nearly twice the stock's current perch. NVTA has gapped 12% higher to $6.62, at last check, set to close back above the 50-day moving average.

Daily Chart of NVTA with 50 MA

At the top of Nasdaq today is gaming headphone concern Turtle Beach Corp (NASDAQ:HEAR), after the company reported first-quarter earnings that greatly exceeded estimates, thanks to the success of Fortnite. Turtle Beach stock received a slew of analyst attention in response, including a price-target hike from Wedbush, to $12.50 from $4. The stock earlier peaked at a two-year high of $13.88, and was last seen 76.2% higher at $12.23.

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