Stock Market Forges Higher on Reopening Buzz

Record unemployment rates came in for last week

Deputy Editor
May 8, 2020 at 12:01 PM
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The Dow Jones Industrial Average (DJI) is up over 365 points midday, as hopes of the economy reopening and upbeat U.S.-China trade buzz ward off dismal economic data. The Nasdaq Composite (IXIC) and S&P 500 Index (SPX) are also in the black, shaking off the 20.5 million jobs lost in April due to COVID-19 -- the highest rise in unemployment since post-World War II.

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

  • General Motors stock lands billion dollar boost.
  • Automaker name planning to resume operations.  
  • Plus, NET sees an options surge; TPI gets a post-earnings boost; and the electronics stock sinking lower.

mmc chart may 8

One stock seeing unusual options activity today is Cloudflare Inc (NYSE:NET), down 12.6% at $25.80 at last check. The IT company has seen 19,000 calls cross the tape so far, seven times what's typically seen. Most popular is the May 30 strike call, followed by the May 26 call -- where new positions are being opened. This rise in calls comes after the company reported a wider-than-expected first-quarter loss. No fewer than five analysts have raised their price targets, including at Needham, to $32 from $24. Year-to-date, NET has tacked on 74%. 

Scaling the Nasdaq today is TPI Composites Inc (NASDAQ:TPIC), up 21.3% at $20.36 at last check, following the company announcing a better-than-expected first-quarter report. Analysts we quick to chime in split, Craig-Hallum raising its price target to $31, and Cannacord Genuity cutting its price target to $20. Though TPI was turned away from its 80-day moving average just last week, today's pop has the trendline now a fresh mode of support. 

TPIC MMC chart may 8

On the other end of the Nasdaq today is Universal Electronics Inc (NASDAQ:UEIC), down 12% at $35.36 at last check. Today's drop comes after a first-quarter earnings and revenue miss, after which, brokerage firm Dougherty lowered its price target to $60. The equity had been inching its way higher in recent weeks, but gains have been capped by overhead pressure at the $42 mark. Year-to-date, UEIC is down 32.8%. 

 

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