Major Indexes Boosted by Upbeat Retail Sales Data

U.S. President Donald Trump said he would raise his stimulus offer

Digital Content Manager
Oct 16, 2020 at 12:07 PM
facebook twitter linkedin


The Dow Jones Industrial Average (DJI) is up nearly 270 points at midday, furthering its chances of snapping its three-day losing streak after a strong start to the day. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also comfortably higher, thanks to better-than-expected U.S. retail sales data and positive COVID-19 vaccine news from Pfizer (PFE). Elsewhere, investors are keeping an eye on stimulus negotiations, after U.S. President Donald Trump said he would raise his $1.8 trillion stimulus package offer.

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

  • Pet e-tailer runs higher on heels of bull note.
  • Fiverr stock takes the lead in freelance sector.
  • Plus, options bulls blast Hertz stock; NAV surges on Volkswagen counteroffer; and energy stock drops on revised sales guidance.

Midday Market Stats 1016

One stock seeing notable options activity today is Hertz Global Holdings Inc (NYSE:HTZ), up 70.9% at $1.76 at last check. The jump came after the car rental concern said it secured commitments for debtor-in-possession (DIP) financing totaling $1.65 billion. The proposed financing will support the company as it moves through the next stage of its Chapter 11 process. So far today, 152,000 calls have crossed the tape, or 74 times the average intraday amount. Most popular is the weekly 10/23 2.5 strike-call, where new positions are being opened, followed by the monthly October 1 call. Longer term, HTZ remains down 88.7% this year, but with today's pop is eyeing its best single-day gain since early June.

Surging on the New York Stock Exchange (NYSE) is Navistar International Corp (NYSE:NAV)up 20.4% at $42.70 at last check. Today's surge came after the company said it was prepared to accept a buyout from Volkswagen's Traton, if the latter raised its offer price to $44.50 from $43 per share. While the security suffered a massive bear gap earlier this week as a result of prior buyout tensions, NAV is currently back above the 40-day moving average. The equity had been chopping higher on the charts since March, hitting a two-year high on Oct. 5 of $45.20. In the last six months, NAV has gained 123%.

NAV 40

Meanwhile, dropping lower is Daqo New Energy Corp (NYSE:DQ), last seen down 8.4% at $184.72. The substantial bear gap came after the energy concern lowered its third-quarter sales guidance. The stock had experienced enormous growth over the past several months, skyrocketing to an all-time-high on Oct. 13 of $226.22. Despite today's negative price action, DQ is still up a jaw-dropping 345.8% year-over-year.


A Schaeffer's exclusive!

The Expert's Guide

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


  
 
Special Offers from Schaeffer's Trading Partners