Dow Erases 2020 Losses on Heels of Fed Inflation Update

Investors are also digesting weekly jobless claims and adjusted GDP

Assistant Editor
Aug 27, 2020 at 12:02 PM
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The Dow Jones Industrial Average (DJI) is up over 230 points midday, officially erasing its 2020 coronavirus-ridden losses. The S&P 500 (SPX) and Nasdaq Composite (IXIC) are also in the black, after Federal Reserve Chairman Jerome Powell stated that the central bank agreed to "average inflation targeting," which will allow inflation to run moderately higher for "some time." Meanwhile, new weekly jobless claims was in line with expectations, totaling one million, while the adjusted second-quarter gross domestic product (GDP) came in better than expected.

Elsewhere, in the Gulf of Mexico and southern U.S. states, investors are keeping a close watch on the drop in oil prices, as hurricane Laura makes landfall near major oil rigs. At last check, October-dated crude was down 1.5%, at $42.87.

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

  • Analysts chime in on cloud concern.  
  • Jewelry stock announces earnings beat on China sales. 
  • Plus, BYND sees call surge on direct online sales; newly separated SPWR is surging; and QDEL drops as competition increases. 

MMC August 27

One stock seeing notable activity in its options pits is Beyond Meat Inc (NASDAQ:BYND), last seen up 7.6% at $135.07, after starting direct online sales of products. So far, 114,000 calls have crossed the tape -- 7 times what's typically seen at this point. Most popular are the weekly 8/28 135- and 140-strike calls, with new positions being opened at both. Today's pop has the stock breaking above former pressure at the $130 region. 

Scaling the Nasdaq today is SunPower Corporation (NASDAQ:SPWR), up 21.2% at $10.81, earlier hitting a fresh four-year high of $12.34. Today's surge comes after the company reported that its split from Maxeon Solar Technologies (MAXN) was finalized. The equity is up 48.9% in the last week. 

Meanwhile, at the bottom of the Nasdaq, Quidel Corporation (NASDAQ:QDEL) is down 38.7% at $136.63 at last check. Today's steep bear gap looks to be due to the fact that Abbot Laboratories (ABT) won U.S. marketing authorization for a COVID-19 antigen test, which Quidel already markets. Although having now dropped to become face-to-face to its 200-day moving average, the stock is still up 83.6% year-to-date.

QDEL MMC August 27

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