Earnings, Trade Optimism Send Dow Soaring

Walmart shares are flirting with a double-digit percentage gain

by Josh Selway

Published on Aug 16, 2018 at 12:03 PM

A combination of strong large-cap earnings and improving geopolitical conditions has U.S. stocks soaring today. The Dow Jones Industrial Average (DJIA) has gained more than 360 points, putting it back in positive territory for the week, thanks to Walmart's (WMT) earnings win, with the blue chip last seen trading nearly 10% higher. Also boosting the market is news that the U.S. and China are planning to resume trade talks in the coming weeks. 

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

  • A "strong buy" recommendation has Alibaba stock outshining JD.com.
  • Boeing shares are soaring thanks to one analyst's huge price target.
  • Plus, eBay bulls step up; Goldman calls bottom on software stock; and IMAX retreats again.

midday market stats august 16

About a month ago eBay Inc (NASDAQ:EBAY) gapped lower on disappointing earnings and the shares have since failed to recover. Options activity today suggests traders are betting on the comeback, though, with buy-to-open activity spotted at the September 37 call. These bulls are hoping EBAY stock crosses the $37 mark by expiration on Friday, Sept. 21 -- a 9.5% gain from the current price of $33.78.

One of the best stocks on the New York Stock Exchange is automated tax software specialist Avalara Inc (NYSE: AVLR). The shares yesterday hit their lowest point since the June 15 initial public offering (IPO) -- bottoming at $32.10 -- but are now rallying 9.9% to trade at $38.11, after Goldman Sachs upgraded them to "buy" from "neutral." Goldman said the pullback in the stock was attractive, and the company has no clear competition to be seen. AVLR shares traded as high as $59.40 back on June 21.

IMAX Corp (NYSE:IMAX) is a notable loser due to Amazon.com's (AMZN) potential entry into the theater business. IMAX shares are down 2.2% today at $22.60, though they bottomed near the 200-day moving average earlier, a trendline that's oscillated between support and resistance in recent months. Another obstacle could be the $23-$24 area that's capped breakout attempts throughout 2018.

imax stock chart august 16

 


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