Stocks Eye Sizable Weekly Wins With Stimulus in Focus

The Dow was seen up roughly 76 points at midday

Deputy Editor
Feb 5, 2021 at 12:25 PM
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The major indexes are attempting to build off this morning's gains, as traders brush off a worse-than-expected January jobs report. The Dow Jones Industrial Average (DJI) is up roughly 76 points at midday, while the S&P 500 Index (SPX) is firmly in the black, with both indexes on pace to nab their fifth consecutive wins. Meanwhile, the Nasdaq Composite (IXIC) is also higher, and all three benchmarks are eyeing their best week since November.

Some of this optimism seems to stem from hopes that this round of disappointing jobs data may speed up stimulus negotiations. Meanwhile, the Senate just passed a budget resolution, and Democrats continue to push for a $1.9 trillion emergency relief bill, with or without Republican support. 

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

  • The quarterly forecast miss putting the breaks on PTON. 
  • One online real estate stock clocking fresh highs on analyst praise. 
  • Plus, option bulls blast rallying Zoom stock; AAME jumps out of penny stock territory; and Chinese stock gives up yesterday's massive gains. 

miday stats feb 5

Stay-at-home staple Zoom Video Communications Inc (NASDAQ:ZM) is seeing a massive surge in options activity today. While the catalyst isn't completely clear, the security is up 5.6% at $411.77 this afternoon, and pacing for its highest settlement in over a month. On the charts, Zoom stock has been attempting to recover from several sharp pullbacks it suffered in November. The equity has added over 21% year-to-date, and just toppled overhead pressure at its 60-day moving average, which has kept a lid on shares since those bear gaps. Circling back to the options pits, so far 161,000 calls and 36,000 puts have exchanged hands, which is three times the intraday average. The most popular contracts are the weekly 2/5 420- and 410-strike calls, with positions being opened at both. This indicates investors are expecting more upside for ZM by the time contracts expire this evening. 

ZM Feb 5

Insurance provider Atlantic American Corporation (NASDAQ:AAME) is one of the top performing stocks on the Nasdaq today, last seen up 328.7% to trade at $10.25. Though there doesn't seem to be a clear reason, the equity earlier hit an all-time high of $14.24, pushing past long-time pressure at the $2.80 level. Now, AAME sports a nine-month lead of over 556%. 

After yesterday's mind-blowing 951.5% surge, China-based ATA Creativity Global (NASDAQ:AACG) is reversing course as one of the worst performing stocks on the Nasdaq, last seen taking a 53.1% nosedive to trade at $6.70. No particular headlines seem to be driving this price action, and AACG remains positioned well above its pre-bull gap levels. It should be noted, however, that the security has landed on the short-sale restricted (SSR) list. Year-over-year, the equity remains up an impressive 489%.

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