Dow Sinks With Apple

The chances of a rate cut this month are diminishing

by Patrick Martin

Published on Jul 8, 2019 at 11:52 AM
Updated on Jul 8, 2019 at 11:56 AM

The Dow Jones Industrial Average (DJI) is staring at a triple-digit deficit at midday, weighed down by newly downgraded Apple (AAPL), as well as rough outings from fellow blue chips Boeing (BA) and Pfizer (PFE). Investors are also preparing for comments from Fed Chair Jerome Powell on Wednesday, after the prospects of a July rate cut took a hit on Friday. Elsewhere, oil prices continue to creep higher, with August-dated crude futures up 1.1% at $58.12 per barrel, as tensions with Iran simmer. 

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

  • 2 drug stocks flying high today. 
  • Applied Materials stock was part of a sector-wide downgrade.
  • Plus, big bets on a Chewy pullback; Rite Aid stays hot; and NetApp downgraded.

Midday Market Stats July 8

Chewy Inc (NYSE:CHWY) is seeing accelerated options trading today. More than 5,200 put options have traded -- seven times what's typically seen at this point in the day, and a new annual high. Leading the charge by far is the July 30 put, where it looks like new positions are being purchased. At last check, the newly listed online pet supplies retailer was down 0.8% to trade at $34, indicating options traders are banking on a sharp pivot lower in the next two weeks.

Rite Aid Corporation (NYSE:RAD) is one of the best stocks on the New York Stock Exchange (NYSE) today, up 3.3% at $9.45, although the exact catalyst is unknown. What is known is that thanks to a FAANG partnership, RAD has been red-hot since its June 25 bottom at $6.14. The shares are on track to topple their 80-day moving average for the first time since August 2018.

RAD Stock Chart MMC

On the other end of the spectrum is NetApp Inc. (NASDAQ:NTAP), down 3.7% to trade at $60.11, one of the worst stocks on the S&P 500 today. Citi downgraded the tech stock to "sell" from "neutral," while cutting its price target to $55 from $67. Since a late-May bear gap, NTAP has consolidated below the $63 level, and is clinging to its year-to-date breakeven level.

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