Schaeffer's 43rd Anniversary Stock Picks in 2024

Benchmarks Break New Records as Biden Optimism Grows

Better-than-expected non-manufacturing activity helped boost investor sentiment

Digital Content Manager
Jan 7, 2021 at 12:26 PM
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Stocks are breaking records this afternoon, after Congress certified President-elect Joe Biden's Electoral College win, and investors looked past yesterday's pro-Trump insurrection. The Dow Jones Industrial Average (DJI) scored a new intraday record, and is up over 200 points at midday. Meanwhile, the S&P 500 Index (SPX) broke through the 3,800 level for the first time, and the Nasdaq Composite (IXIC) breached the formerly untouched 13,000 mark, thanks to outsized gains from the likes of Amazon (AMZN) and Apple (AAPL).

Also contributing to Wall Street's optimism is the Institute for Supply Management (ISM) index, which showed a better-than-expected increase in nonmanufacturing activity in December. Investors are also considering the possibility of additional stimulus now that Democrats control both the Senate and the House.  

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

  • CureVac stock soars on COVID-19 vaccine collaboration.
  • Citi added this semiconductor stock to its "Catalyst Watch" list.
  • Plus, BBBY sees options pop after earnings miss; ReneSola stock surges following joint venture; and Chinese telecom stock plummets ahead of delisting.

MMC 0107

One stock seeing notable options activity today is Bed Bath & Beyond Inc. (NASDAQ:BBBY), last seen down 9.3% to trade at $19.07, after the company reported disappointing fiscal third-quarter earnings results. So far today, 77,000 calls and 69,000 puts already crossed the tape, which is five times the intraday average, with volume running in the 99th annual percentile. Most popular is the weekly 1/8 22-strike put, where new positions are being opened, followed by the monthly March 25 call. The equity has been cooling off from an Oct. 20, four-year high of $26.16, and despite the negative price action has gained 236.6% in the last nine months.

Meanwhile, one stock near the top of the New York Stock Exchange (NYSE) today is China-based solar energy concern ReneSola Ltd. (NYSE:SOL), last seen up 33.8% at a seven-year high of $22.39. The equity has been on a tear lately, with today's surge fueled by the company's joint venture with asset management firm Eiffel Investment Group, which will provide financing for current and future solar projects in Europe. In addition, the entire clean energy sector is getting a boost after Democrats took hold of the Senate. On the charts, the security has been receiving support from the 40-day moving average for the past several months, and is up a whopping 1,558.8% year-over-year.

SOL 40 Day

Near the bottom of the NYSE today is China Telecom Corporation Limited (NYSE:CHA), last seen down 13.3% to trade at $25.12. The negative price action came after the NYSE said it would delist the security on Jan. 11, along with two other Chinese telecom firms, flip flopping from an initial decision not to delist the stocks earlier this week. Naturally, the shares have has a volatile run on the charts of late, and are now dangerously close to dropping south of their Jan. 4, 17-year low of $24.10. Year-over-year, CHA sports a 38.3% deficit. 

 

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