IBM Stock Rally Lifts Dow

It's unclear why IBM shares are gaining today

Aug 3, 2018 at 11:51 AM
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The Dow Jones Industrial Average (DJIA) is modestly higher this afternoon, thanks to a strong uptick in shares of International Business Machines (IBM). More broadly speaking, however, stocks are struggling for upside, as traders react to this morning's jobs report and another round of tariff threats out of China. But while the Nasdaq Composite (IXIC) and S&P 500 Index (SPX) are trailing the Dow in today's trading, they're both set for weekly wins -- though the blue-chip index will need a strong afternoon performance to avoid snapping its four-week win streak.

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

midday market stats aug 3

One name seeing notable options trading today is Shake Shack Inc (NYSE:SHAK), as a weak full-year revenue outlook weighs on the stock. SHAK shares have shed 11% to trade at $56.90, and puts are flying off the shelves, with more than 14,000 crossing so far, compared to an average daily volume of just above 2,000. Most popular by a large margin is the August 55 put, where new positions are being opened, though some of this could be selling activity. Betting on a short-term floor may not be a bad idea, with SHAK sitting near the site of a post-bull-gap consolidation from May, and its 20-week moving average.

shak stock chart aug 2

One of the best stocks on the New York Stock Exchange is healthy living enthusiast Medifast Inc (NYSE:MED), as the shares soar to a record high after a strong quarterly update. MED stock was last seen up 24.9% at $218.50, earlier topping out at $229.20, marking a third straight post-earnings bull gap. Looking back to a year ago, Medifast was trading just above $40 per share.

Over on the Nasdaq, cybersecurity concern Symantec Corporation (NASDAQ:SYMC) is getting crushed, dropping 13.2% to trade at $18.13, touching a two-year low of $17.81 in the process. Sparking the sell-off is a weak full-year outlook, on top of the internal audit of its accounting practices that originally sent the shares gapping lower back in May. SYMC has now shed more than one-third of its value year-to-date.

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