Dow Claws Higher Despite Intel Downgrade

The blue-chip index is looking for direction as traders weigh trade tensions against upbeat earnings

Managing Editor
Aug 6, 2018 at 11:52 AM
facebook twitter linkedin

The Dow Jones Industrial Average (DJI) has clawed its way out of the red at the session's midpoint, overcoming a 1.3% drop for Intel (INTC) after the chip stock was downgraded at Barclays. Trade tensions are keeping upside in check, though the Nasdaq Composite (IXIC) and S&P 500 Index (SPX) have managed minor gains of their own at midday. Another round of upbeat earnings is also in focus, including a well-received report out of Tyson Foods (TSN).

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

Midday Market Stats August 6

One name seeing notable options trading today is cloud communications concern Twilio Inc (NYSE:TWLO), as investors anticipate the company's upcoming second-quarter earnings, slated for after the market closes today. So far, roughly 13,000 puts have been traded compared to 7,106 calls -- representing nine times the normal intraday put volume, and triple the usual call activity. The weekly 8/10 57-strike put -- where some buy-to-open activity has been detected -- is the most popular option at midday, with 6,300 contracts on the tape so far.

Twilio stock has been an outperformer since its early February lows around $24, and was last seen up 166% year-to-date, with a leg of support coming from the rising 40-day moving average. TWLO is up 1.5% at $62.91, at last check, which means those 57-strike puts are out of the money by a wide margin.

Daily Chart of TWLO with 40MA

One of the best stocks on the New York Stock Exchange (NYSE) today is Sprint Corp (NYSE:S), boosted by reports that regulators are eyeing its possible T-Mobile merger favorably. S stock was last seen up 8.7% at $6.11, pushing back above the $6 mark for the first time since late April. With today's pop, Sprint stock is now back in positive territory on a year-to-date basis.

One of the Nasdaq's worst performers today is ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), after the stock was downgraded to "neutral" at Piper Jaffray this morning. ACAD has been on a long-term downtrend since late last year, and has shed 53.4% over the past 12 months. At last check, ACAD was down 6.6% at $14.22.


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! 

Best stocks for October and worst stocks for October


Special Offers from Schaeffer's Trading Partners