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Stocks Bounce Back on Dovish Powell, S&P 500 Eyes 3,000

Powell bolstered expectations for a July rate cut, sending indexes to record highs

Managing Editor
Jul 10, 2019 at 11:55 AM
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The Dow Jones Industrial Average (DJI) is on the mend today, and earlier touched an all-time high, thanks to renewed rate cut optimism. At his testimony before the House Financial Services Committee, Fed Chair Jerome Powell suggested that Friday's strong jobs report has not altered the Fed's outlook. Despite the dovish remarks, the Dow has pared some of its gains at midday. Likewise, the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also modestly higher after earlier notching all-time peaks, with the former climbing above the 3,000 level for the first time ever. Elsewhere, oil prices are gaining sharply amid a steep drop in domestic inventories, with August-dated crude futures up 3.4% at $59.81 per barrel.

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

  • 2 electric automakers charging up the charts.
  • Record highs for Comcast stock after a Goldman nod.
  • Plus, options bulls target more Overstock.com gains; Micron stock stays hot; and Mylan stock under sector pressure.

Midday Market Stats July 10

Overstock.com Inc (NASDAQ:OSTK) is seeing accelerated options trading today. More than 22,000 call options have traded -- double what's typically seen at this point in the day, and volume pacing for the 99th percentile of its annual range. Leading the charge is the July 20 call, but there are also new positions being opened at the weekly 7/12 18.50-strike call. At last check, the blockchain stock was up 4.5% to trade at $17.97, set for its third straight win.

At the top of the S&P 500 today sits Micron Technology, Inc. (NASDAQ:MU), up 5.7% to trade at $43.27, after the company announced the offering of senior notes. The chip stock is on track for its highest close since May 3, and is trying to topple its 320-day moving average for the first time since October.

MMC Daily Chart MU

At the bottom of the S&P 500 sits Mylan NV (NASDAQ:MYL), down 4.9% to trade at $18.65. The EpiPen maker is under pressure after sector peer Amneal Pharmaceuticals (AMRX) cut its earnings forecast on supply uncertainty and a shortage of emergency allergy shots. After bottoming at a seven-year low of $16.63 on May 31, last month's breakout was deterred by MYL's 50-day moving average.

 

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