Nasdaq Gains as Dow, S&P Hold Near Breakeven

Investors did have some inflation data to digest, however

Jun 12, 2018 at 11:42 AM
facebook twitter linkedin


The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are hovering near breakeven today, though the tech-heavy Nasdaq Composite (IXIC) is pushing higher. For the most part, traders continue to digest the meeting between President Donald Trump and North Korea's Kim Jong-Un, and are taking a wait-and-see approach ahead of tomorrow's Fed announcement. In the meantime, Wall Street is considering the latest inflation data in the form of the consumer price index (CPI), which rose a year-over-year 2.8% in May -- the biggest increase since February 2012.

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

  • The drug stock "overlooked by investors."
  • Newest bull note sends Twitter shares to another high.
  • Plus, protective puts popular on Kohl's; Weight Watchers soars (again); and a medical tech stock selling off.

midday market stats june 12

One name seeing heavy options trading today is retail concern Kohl's Corporation (NYSE:KSS). Puts are trading at nearly two times the pace expected, due to interest in the January 2019 70-strike put, where more than 3,100 contracts have crossed, compared to just 525 at the next closest strike. With KSS stock trading at $77.89, putting it up more than 100% year-over-year, it's likely this activity comes from shareholders hedging to protect paper profits.

Weight Watchers International, Inc. (NYSE:WTW) is once again a major winner on the New York Stock Exchange (NYSE), as the stock's epic rally continues. A bull note from J.P. Morgan Securities has WTW shares up 5.2% at $91.38, and they hit an all-time high of $92.92 earlier in the session. The equity's year-over-year gain is north of 237%.

Meanwhile, medical technology stock Stryker Corporation (NYSE:SYK) is a notable loser on the NYSE, as the shares continue to fall following reports of a potential takeover deal with Boston Scientific (BSX). SYK stock is down 3% today at $164.77, putting it on pace for its lowest close since mid-April. Looking back, the 200-day moving average provided strong support during the security's last major pullback in February, but that closely watched trendline sits down at $157.74.

syk stock chart

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners