Major Indexes Flat as Investors Await Stimulus News

Weekly jobless claims came in better than anticipated

Deputy Editor
Aug 6, 2020 at 12:07 PM
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The Dow Jones Industrial Average (DJI) is flat at midday, as investors digest better-than-expected weekly jobless claims for the last week of July. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are hovering just below breakeven as well, with the market awaiting word on the second stimulus bill. The Trump Administration Wednesday spoke about the potential for executive action if a compromise is not reached in congress this week. 

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

  • What sent Zynga stock to an eight-year high out of the gate. 
  • Pharma name soars amid spinoff buzz. 
  • Plus, analysts and options traders chime in on WDC; Denali Therapeutics stock surges on collaboration; and meal delivery service stock plummets. 

mmc august 6

One stock seeing notable activity in its options pits is Western Digital Corporation (NASDAQ:WDC), down 16.6% at $37.08 at last check. Following the company's fiscal fourth-quarter revenue that came in below estimates, Craig-Hallum downgraded the stock to "hold" from "buy," chiming in alongside no fewer than 12 analyst price-target cuts. So far, 29,000 calls and 26,000 puts have crossed the tape -- six times what's typically seen. Most popular is the September 32.50-strike call, where new positions are being opened. Today's bear gap now has the equity swimming in a 40% year-to-date deficit.

One stock scaling the Nasdaq today is Denali Therapeutics Inc (NASDAQ:DNLI), up 37.4% at $31.93 at last check, after announcing a collaboration with Biogen (BIIB) in regard to Denali's experimental Parkinson's disease treatments. Today, the stock is extending past it's former January record highs, earlier hitting $35.70. Year-to-date, the equity is up 82.7%. 

Meanwhile, dropping to the bottom of the New York Stock Exchange (NYSE) today is Blue Apron Holdings, Inc (NYSE:APRN), down 20.7% at $9.03, at last check. This slide comes after the company announced a 4 million dollar public share offering -- a deeply discounted rate. However, the 200-day moving average looks to be moving in as a potential layer of support, and the equity is still up 37.5% year-to-date. 

APRN mmc


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