S&P Falters After Early Surge Past 2,900

Trump's push to replace NAFTA sent stocks soaring early, but momentum has faded at midday

by Emma Duncan

Published on Aug 28, 2018 at 12:00 PM
Updated on Aug 28, 2018 at 12:12 PM

U.S. stocks soared to new highs early this morning on trade optimism, after Treasury Secretary Steven Mnuchin told CNBC the White House's goal now "is to try to get Canada on board quickly" in a deal to replace NAFTA. Meanwhile, economic data showed a slowdown in home-price gains during June, while consumer confidence surged in August to its highest since October 2000. Against this backdrop, the S&P 500 Index (SPX) quickly hit a new intraday record of 2,903.77, and the Nasdaq Composite (IXIC) peaked at a fresh all-time best of 8,046.32 -- but at midday, the major equity indexes are hovering around breakeven.

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

  • The gold signal that's turned everyone into a contrarian, according to founder and CEO Bernie Schaeffer.
  • 2 struggling chip equipment stocks hit with downgrades.
  • Plus, Hain Celestial posts disappointing revenue; DSW gaps higher on earnings; and 2 drug stocks spiral after an FDA rejection.

Midday Market Stats August 28

One stock seeing unusual options activity today is Hain Celestial Group Inc (NASDAQ:HAIN), after the company reported a fiscal fourth-quarter loss and disappointing revenue. HAIN is down 3.8% at $27.42, at last check, with roughly 52,000  calls -- compared to 1,400 puts -- on the tape so far. Trade-Alert reports that most of the call volume is linked to a trader rolling their November 32 calls out and down to the January 30 strike. The food processing concern has been on a long-term downtrend, already having shed 35% year-to-date, with a ceiling of resistance stemming from the 120-day moving average.

Daily Chart of HAIN with 120MA

Shoe retailer DSW Inc. (NYSE:DSW) is at the top of the New York Stock Exchange (NYSE) today, surging after the company reported a second-quarter beat-and-raise early this morning. The shares gapped to a fresh three-year high of $34.02 out of the gate, and were last seen up 23% at $33.68.

The worst performer on the Nasdaq today is Akcea Therapeutics Inc (NASDAQ:AKCA), as the shares plunge alongside partner Ionis Pharmaceuticals (IONS) after a surprise rejection from the Food and Drug Administration (FDA). Regardless, Akcea stock remains up 41% year-to-date at $24.55.


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