Schaeffer's Top Stock Picks for '25

Stocks Up for Third Straight Day After Trump Trade Tweet

Big buyout news has Newfield Exploration bucking the bearish energy bias

Nov 1, 2018 at 11:59 AM
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The Dow Jones Industrial Average (DJI) has kicked off November with a bang -- up triple digits on strong blue-chip earnings and an upbeat tone on trade talks from President Donald Trump. Specifically, Trump tweeted that tariff discussions with Chinese President Xi Jinping were "moving along nicely," and that meetings between the two leaders were being scheduled for the G-20 summit in late November. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are higher, too, with all three indexes pacing for a third straight win.

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

  • The iHeartRadio rumors swirling around Apple ahead of earnings.
  • Why Wedbush just upgraded Roku stock.
  • Plus, a big bearish bet on oil; the energy stock near the top of the S&P; and Hanesbrands takes a Sears-related hit.

midday market stats nov 1

One of the names seeing unusual options volume today is the United States Oil Fund (USO), with more than 60,000 contracts traded, two times the average intraday amount. Most active is the December 13 put, where it looks like one speculator bought to open a 17,000-contract block for 27 cents apiece, or $459,000 (number of contracts * premium paid * 100 shares per contract). In addition, it seems the speculator sold to close January 2019 12.50-strike puts, per Trade-Alert. USO is falling in step with oil prices today, down 1.9% at $13.53, extending its stay beneath the formerly supportive 200-day trendline.

oil etf daily price chart nov 1

Newfield Exploration Co. (NYSE:NFX) is one of the best stocks on the S&P 500 today, on news the petroleum and natural gas explorer will be bought by fellow energy name Encana (ECA) in an all-stock deal valued at $5.5 billion. While NFX stock is up 9% at $22.02 -- on track for its best day since Nov. 20, 2016 -- ECA shares are down 16.9% at $8.51, fresh off an annual low of $8.44.

Hanesbrands Inc. (NYSE:HBI) is one of the worst stocks on the SPX today, down 8.5% at $15.70, and fresh off a five-year low of $15.55. Pressuring HBI shares is the clothing maker's third-quarter earnings and revenue miss, and a weak full-year forecast due to the recent Sears Holdings bankruptcy.

 
 

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