Dow Turns Lower as S&P 500, Nasdaq Hang On

A fresh record high for Apple is keeping the tech-rich Nasdaq in the black

Deputy Editor
Jun 17, 2020 at 12:11 PM
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The Dow Jones Industrial Average (DJI) has pivoted lower at midday, erasing this morning's attempts to maintain market momentum. The blue-chip index has explored an over 200-point range on both sides of breakeven already today, as record coronavirus spikes in six U.S. states overshadow hope that the worst of the pandemic is over for the U.S. economy. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are clinging to what would be their fourth straight win, after FAANG star Apple (AAPL) hit another intraday high. Elsewhere, Wall Street's "fear gauge," the Cboe Volatility Index (VIX), is headed for its fourth straight day in the red.

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

  • Highlighting two black-owned companies Wall Street should be paying attention to.
  • United Airlines sweetened its buyout offer, but traders aren't biting. 
  • Plus, bull note brings options players to NET stock; LMFA surges; and FDA drama sends CEMI packing. 
Midday Market Stats Jun 17

There is an unusual amount of options activity surrounding Cloudflare Inc (NYSE:NET) today. So far, 38,000 calls have crossed the tape, 12 times the intraday average and almost nine times the number of puts traded. New positions are being opened at the July 37 call, which is by far the most popular. NET is up 8.5% at $34.34 after Needham hiked its price target to $38 from $32 while forecasting a rise in demand for the cloud technology. The stock is trading at its highest level on record and set for its fourth-consecutive win. 

LM Funding America Inc (NASDAQ:LMFA) is one of the best performers on the Nasdaq today, up 175.5% at $3.03 at last check, though the catalyst is unclear. The stock hit a two-year high of $4.89 earlier out of the gate. The financial services stock is up 289% year-to-date, with its 30-day moving average providing solid support ahead of today's surge.

One of the worst stocks on the Nasdaq today is Chembio Diagnostics Inc (NASDAQ:CEMI) which is down 60.4% at $3.93 after the Food and Drug Administration (FDA) revoked emergency use authorization for the biotech's COVID-19 test kit, based on concerns over its accuracy. The company said it was in talks with the FDA to resolve the issue. This plummet puts CEMI back below its 80-day moving average, which buffered the stock's pullback from its April 23 16-year high of $15.89. Now, CEMI is right back in penny stock territory, near its March trough.

CEMI New Chart Jun 17

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