Reports say the U.S. could cut existing tariffs on China
Stocks are spiking today thanks to bullish trade developments. First, President Donald Trump tweeted that the U.S. and China were "VERY close" to a "BIG DEAL," and fresh reports suggest the Trump administration is willing to cut existing tariffs on China along with canceling Sunday's deadline for more tariffs. The Dow Jones Industrial Average (DJI) is sporting a triple-digit lead at the halfway point as a result, while the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also on the rise. As such, not much attention has been paid to this morning's two-year high in initial jobless claims.
One name seeing unusual options trading is Autodesk, Inc. (NASDAQ:ADSK). The stock is down 1.4% at $177.13, just a few days after its all-time peak of $181.55, and call and put volume are both running hot. There's been heavy trading at the December 190 call, which was home to peak open interest coming into today, while put traders are opening positions at the January 2020 175-strike put.
One of the best stocks today is Ciena Corporation (NYSE:CIEN), with the shares overcoming pre-market losses to jump 13.6% to $40.24, despite a fourth-quarter profit miss. This has CIEN above its 80-and 200-day moving averages -- and maybe more importantly -- the $40 level, which has been both support and resistance in the past year.
One of the worst stocks today is customization furniture specialist Lovesac Co (NASDAQ:LOVE), down 12.3% at $12.72 on the company's bigger-than-expected quarterly loss. The shares earlier touched an all-time low of $12.36, and their six-month decline is now 58%. Interestingly, all four analysts in coverage have "strong buy" ratings.