Dow Pivots Lower; S&P, Nasdaq Higher With Chip Stocks

President Trump tweeted the Fed should "cut deeper"

by Patrick Martin

Published on Jul 22, 2019 at 12:04 PM

The Dow Jones Industrial Average (DJI) is lower at midday, erasing early morning gains as investors prepare for the latest batch of earnings reports, including several FAANG names set to report later this week. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are higher, though, enjoying modest gains thanks to semiconductor sector tailwinds. Elsewhere, the Fed's looming rate-cut decision at the July 30-31 Federal Open Market Committee (FOMC) meeting remains a talking point. According to CME Group’s FedWatch tool, market expectations for a 25 basis-point rate cut next week are at 77.5%. And earlier this morning, President Donald Trump tweeted that the Fed should "cut deeper." 

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

  • "The Lion King" has Disney stock eyeing record highs.
  • Why Stifel is buying Stitch Fix stock.
  • Plus, Teva puts pop; Applied Materials rides sector tailwinds; and a new bottom for Mallinckrodt stock.

Midday Market Stats July 22

Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is seeing accelerated options trading today. Almost 52,000 put options have traded -- four times what's typically seen at this point in the day, and volume pacing in the 100th annual percentile. Leading the charge is the January 2020 9-strike put, but there are also new positions being opened at the weekly 7/26 7.50-strike put. At last check, the drug stock was down 4% to trade at $7.60, and earlier fell to a 19-year low of $7.46. 

Applied Materials, Inc. (NASDAQ:AMAT) is near the top of the S&P 500 today, up 4.7% to trade at $49.94, enjoying the tailwinds from reports of a White House chipmaker summit to discuss the U.S. Huawei ban. AMAT is now up over 54% year-to-date, and fresh off a new annual high of $50.47. For the past few months, pullbacks have been contained by the shares' ascending 20-day moving average.

Daily Chart MMC AMAT

On the other end of the spectrum is Mallinckrodt PLC (NYSE:MNK), down 11% to trade at $6.34, and earlier falling to a record low of $6.07. The beleaguered drug stock received a sharp price-target cut today from SVB Leerink to $8 from $22. MNK has now shed 60% year-to-date.

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