Nike Earnings Reaction Carries Dow Higher

WBA, meanwhile, is one of only a handful of Dow losers today

Jun 29, 2018 at 12:02 PM
facebook twitter linkedin


Nike (NKE) stock's post-earnings surge to record highs has the Dow Jones Industrial Average (DJI) set for a big win. In fact, one of the few blue-chip losers today is Dow newcomer Walgreens Boots Alliance (WBA), as analysts pound the pharmacy concern.

The financial sector is today's other bullish driver, thanks to extended rallies from large-cap bank stocks. Most major U.S. banks passed their annual Fed stress test, allowing them to increase dividends and share buybacks. The Nasdaq Composite (IXIC) and S&P 500 Index (SPX) are higher, as well, as stocks are set for a strong end to the second quarter.

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

  • Pharma stock soars on FDA approval.
  • Schaeffer's Senior V.P. of Research Todd Salamone discusses the best and worst sectors to trade this summer.
  • Plus, options traders bet on a big China comeback; Vertex stock surges; and a rallying e-commerce stock.

midday market stats june 29

One name seeing notable options trading today is the iShares China Large-Cap ETF (FXI). The exchange-traded fund (ETF) is up 1.4% at $42.94, following a major bounce back from the Chinese stock market. In the meantime, call volume is running at double the expected pace, thanks to heavy activity at the August 45 and 48 calls, where one trader may have opened a long call spread. By doing so, he or she would be wagering on a sharp move higher from FXI, which gapped below the $45 level back on June 19.

One of the best stocks on the Nasdaq is Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), thanks to news its rival, Galapagos (GLPG), reported a disappointing update for its cystic fibrosis (CF) program. VRTX shares are set for their highest close since late March, up 14.3% at $168.72, blowing past recent technical resistance from the 80-day moving average.

vrtx stock price

Another big Nasdaq gainer is e-tailer Overstock.com Inc (NASDAQ:OSTK), as the shares rally from a near-oversold condition, based on their 14-day Relative Strength Index (RSI) of 32 from yesterday's close. The stock was last seen trading up 12.5% at $33.65, though this still leaves its year-to-date return at negative 48%. OSTK shares began descending to fresh lows following the recent Supreme Court decision for online sales.

Trader: Sell These 8 Stocks in 2021

1633101108

 




 
Special Offers from Schaeffer's Trading Partners