Oil Prices Nosedive, Dow Dips Again

Pharma stocks JNJ and MRK are easing the Dow's downside

Jun 12, 2019 at 11:54 AM
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The Dow Jones Industrial Average (DJI) is lower at midday, as traders digest the latest inflation data, putting the blue-chip index on track for back-to-back losses. While downside for the Dow is modest thanks to big gains from pharma stocks Johnson & Johnson (JNJ) and Merck (MRK), oil prices are making a notable move south after data showed a second consecutive weekly rise in domestic crude inventories. At last check, July-dated crude is down 2.9% at $51.71 per barrel.

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

  • Put buyers see new lows for sinking Dave & Buster's stock.
  • Analyst: This pharma stock is "remarkably cheap."
  • Plus, Teva legal troubles spark heavy options volume; Tailored Brands drops ahead of earnings; and analysts rush to raise Alteryx price targets.

midday market stats june 12

Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is seeing unusual options activity today, with 45,000 puts and 31,000 calls on the tape -- triple what's typically seen at this point, and volume pacing for the 100th annual percentile. Implied volatility (IV) is spiking, too, with TEVA's 30-day at-the-money IV up 13.3% at 62.6%, in the 96th annual percentile. The stock is down 4.9% at $8.64, fresh off a 19-year low of $8.25, after an Oklahoma judge refused to approve the generic drugmaker's settlement with the state over an opioid lawsuit, and options traders are buying to open December 7 puts to bet on bigger losses.

Tailored Brands Inc (NYSE:TLRD) is near the bottom of the New York Stock Exchange (NYSE), as traders reduce exposure to the retailer ahead of its first-quarter earnings report, due after tonight's close. TLRD stock has a history of negative earnings reactions, last seen down 8.1% at $5.42.

Alteryx Inc (NYSE:AYX) is one of the best stocks on the Big Board today, after the data analytics firm received price-target hikes from D.A. Davidson (to $95) and Cowen and Company (to $112). AYX stock is trading up 7.8% at $103.21, extending a recent bounce off its 40-day moving average and trading within a chip-shot of its June 10 record high of $106.25.

ayx stock daily price chart on june 12

 

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