Dow, S&P Struggle as Oil Drops

June-dated crude futures are dropping midday

Deputy Editor
May 6, 2020 at 12:16 PM
facebook twitter linkedin


The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are hovering right below the line of breakeven today, as Walt Disney's (DIS) lackluster earnings and a disappointing jobs report weigh. The tech-heavy Nasdaq Composite (IXIC), however, is seeing higher gains thanks to FAANG stocks -- though any gains across the board have been encroached on by the drop in oil prices, with June-dated crude futures down 7%, at $22.81 per barrel, at last check. 

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

  • Pizza name down despite an all-star month.
  • Analysts pile on this plant-based stock.  
  • Plus, ATVI sees an options surge; MacroGenics stock soars earnings; and the food processing company taking a dive.

MMC chart 5.6.20

One stock seeing unusual options activity today is Activision Blizzard Inc (NASDAQ:ATVI), up 5.8% at $72.50 at last check, and earlier touched a fresh annual peak of $74.79. This gaming and entertainment company has seen 74,000 calls and 25,000 puts cross the tape so far, seven times the usual daily volume. Most popular is the weekly 5/8 70-strike call, followed by the May 55 put. This rise comes after the company posted a first-quarter earnings and revenue beat, receiving no fewer than 10 price target raises in response. Year-to-date, ATVI has tacked on 21%.

Topping the Nasdaq today is MacroGenics Inc (NASDAQ:MGNX), up 125% at $17.15 at last check, after the company shared a better-than-expected first-quarter report. Analysts are chiming in with mixed sentiment as Credit Suisse and SVB Leerink have lowered their price targets to $13 and $15, respectively, while H.C. Wainwright & Co and Stifel raised theirs to $22 and $21, respectively. So far in 2020, MGNX has surged an impressive 48%.

Towards the bottom of the New York Stock Exchange (NYSE) today is Bunge Ltd (NYSE:BG), down 10.9% to trade at $33.80 at last check. This drop comes after the food processing company reported an earnings and revenue miss, amid coronavirus headwinds impacting edibles demand. Following multiple failed run-ins with the $42 level, he equity has now gapped below the $36 mark for the first time since mid March.

BG Chart 5.6.20

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners