Weak jobs data has fueled expectations the Fed will ease borrowing costs
This morning's dismal jobs data has ramped up expectations the Fed will lower interest rates, with CME Group now estimating a 25.8% chance of a rate cut at the central bank's June meeting, compared to a 10% probability one month ago. As such, traders are flocking to riskier assets, with the Dow Jones Industrial Average (DJI) pacing for its fourth straight triple-digit gain. Reports that the U.S. will delay increasing tariffs on Chinese imports and a surge in tech stocks are only fueling the upside, with the Dow, S&P 500 Index (SPX), and Nasdaq Composite (IXIC) all on track for their biggest weekly gains of the year.
Continue reading for more on today's market, including:
Twitter Inc (NYSE:TWTR) is seeing unusual options trading at midday, with 43,000 calls on the tape -- more than double what's typically seen at this point, and four times the number of puts exchanged. The weekly 6/7 38-strike call is popular, and it looks like traders are buying the call options on the social media name to bet on a breakout above $38 by tonight's close, when the weekly series expires. TWTR stock was last seen up 3.7% at $37.94, pacing for a 4.3% weekly win.
La Jolla Pharmaceutical Company (NASDAQ:LJPC) is near the top of the Nasdaq, up 30.9% at $13.40. This marks the second straight day of major gains for the pharma stock, which nearly doubled yesterday after upbeat drug data earned LJPC a bullish brokerage note. The shares are now on track to settle above their 200-day moving average for the first time since last August.
Freeport-McMoRan Inc (NYSE:FCX) is one of the best S&P 500 stocks today, rising in step with copper prices. Most recently, FCX stock was up 3.5% at $10.55, putting the miner on track to close above its 20-day moving average for the first time since late April.
