Stocks Recover on Rising Oil Prices

The Dow is flirting with a 200-point lead

by Josh Selway

Published on Dec 4, 2019 at 11:59 AM

Stocks are recovering some of yesterday's massive losses, thanks to more vague trade headlines pointing to progress in U.S.-China trade talks. The Dow Jones Industrial Average (DJI) is comfortably in triple-digit territory, while a big day from the energy sector has the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) higher as well. This comes as oil prices surge on a bigger-than-expected decline in U.S. inventories, with January-dated crude futures up 4.1% at $58.42 per barrel at last check.

midday market stats dec 4

One name seeing unusual options trading is JetBlue Airways Corporation (NASDAQ:JBLU). The December 20 call is seeing extreme volume, with more than 41,000 contracts crossing so far, and data points to buy-to-open activity. If that's the case, traders see JBLU rising above $20 in the coming weeks. The airline stock was last seen up 1.7% at $19.12, bouncing back from yesterday's sector-wide pullback.

One of the best stocks today is Relmada Therapeutics Inc (NASDAQ:RLMD). The shares are trading up 17.6% at $40.51, and earlier hit their highest levels since 2015, peaking at $42.80. The move comes after the drugmaker announced a $100 million equity offering, and puts its year-to-date lead at 810%.

One name making a notable move lower is Wayfair Inc (NYSE:W), last seen down 4.6% at $79.22, flirting with fresh lows and a potential break south from a recent post-bear-gap consolidation pattern in the $80-$85 range. W's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 1.92 and ranks in the bearish 83rd annual percentile, so options traders were positioned for more losses.

wayfair stock dec 4

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