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


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report


Special Offers from Schaeffer's Trading Partners