Manufacturing Update Buries Dow

Strong e-commerce data hasn't been enough to help stocks stop the sell-off

Dec 2, 2019 at 11:57 AM
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Stocks are moving sharply lower today, sending the Dow Jones Industrial Average (DJI) down 200 points at the halfway point. Despite more strong Black Friday and Cyber Monday sales numbers from the retail sector, traders are focusing on a manufacturing update for the U.S. that showed the sector again contracting in November, while trade headlines continue to linger, as well. This price action has the Cboe Volatility Index (VIX) on pace for its biggest one-day rise since August 5.

  • The software stock rising to new highs on an upgrade.
  • Why it hasn't been a fun session for amusement park stock Cedar Fair. 
  • Plus, GrubHub options pop; a red-hot drug stock; and Roku's sell-off.

midday market stats dec 2

One name seeing unusual options trading is GrubHub Inc (NYSE:GRUB), with heavy interest on near-term contracts on both the call and put side. Most popular overall are the December 39 and 40 puts, followed by the weekly 12/6 41.50- and 42.50-strike puts and the 43-strike call. The shares were last seen down 3.5% at $41.06, momentarily breaking a recent uptrend since their late-October lows near $32.

One of the best stocks today is Kodiak Sciences Inc (NASDAQ:KOD), soaring almost 86% to $55.02, earlier hitting a record high of $72.97. Sparking the move is a funding agreement of $225 million with Baker Bros. Advisors for 4.5% royalties to the company's KSI-301 drug, which is being tested in trials for treating various ocular conditions.

Roku Inc (NASDAQ:ROKU) is one of the worst stocks on the Street, sinking 16.1% to $134.57, but remains 9 points above the 120-day moving average, a trendline that's acted as support in recent months. The huge sell-off in ROKU comes after Morgan Stanley downgraded the streaming stock to "underweight."

roku stock dec 2


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