Stocks Rebound on Factory Data Despite Stalled Stimulus

The latest coronavirus relief bill is still being negotiated in congress

Laura McCandless
Aug 4, 2020 at 12:04 PM
facebook twitter linkedin


The major benchmarks are rebounding from their morning slump, though investors are still eyeing the stalled second stimulus bill in congress. The Dow Jones Industrial Average (DJI) is up around 140 points midday, while the S&P 500 Index (SPX) hovers above flatline as real estate stocks pick up steam. The Nasdaq Composite (IXIC) is teetering between breakeven, though paring earlier losses after U.S. factory orders reported a rise 6.2% in June, the second consecutive increase. This points to more positive manufacturing data following yesterday's -- a sentiment-boosting indicator for stocks worldwide at the moment.  

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

  • Popular gaming concern levels up on quarterly beat. 
  • Pharma stock announces a coronavirus drug update. 
  • Plus, PRPL sees options volume surge; digital health stock soars to record highs; and Virgin Galactic slides on the charts. 

mmc chart august 4

One stock seeing notable activity in its options pits is Purple Innovation Inc (NASDAQ:PRPL). With the stock rallying on the charts since late July, Craig-Hallum early yesterday initiated coverage with a "buy" rating and price target of $30. So far, 21,000 calls and 1,254 puts have crossed the tape so far -- six times what's typically seen. Most popular is the August 30-strike call, where over 8,100 contracts have been exchanged. Year-to-date, PRPL has climbed 211%, and this afternoon was last seen up 2.9% at $26.93 -- earlier hitting a fresh record high of $27.75.

One of the top performers on the Nasdaq today is iRhythm Technologies Inc (NASDAQ:IRTC), last seen surging up 36.4% at $173.89, earlier touching a record high of $177.56. Though the reason for today's positive price action is unclear, the equity is now up 137% year-to-date.   

Meanwhile, dropping to the bottom of the New York Stock Exchange (NYSE) today is Virgin Galactic Holdings Inc (NYSE:SPCE), down 11% at $21.37 at last check. Aside from reporting a wider-than-expected second-quarter loss per share, the company also announced a proposed public offering of its common stock. Still up 85.5% year-to-date, the stock has dipped below support at the 20-day moving average. 

SPCE August 4


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 

Partnercenter