MMR

Dow Extends Gains While Nasdaq Pulls Back

Rising bond yields are weighing on the Nasdaq

Deputy Editor
Mar 3, 2021 at 12:15 PM
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The Dow Jones Industrial Average (DJI) is up over 130 points at midday, extending this morning's cautious gains, after President Joe Biden announced late Tuesday that there will be enough Covid-19 vaccines for every adult by the end of May -- boosting sentiment and lifting airline and cruise stocks. In further news, Biden agreed to stricter income limits for the $1,400 stimulus checks.

Meanwhile, the S&P 500 Index (SPX) is modestly in the red, while the Nasdaq Composite (IXIC) is down in the triple-digits, as the rising 10-year Treasury yield weighs on tech stocks. Investor's are also unpacking plenty of economic data. Private payrolls data came in below expectations, while the ISM Nonmanufacturing index showed a reading of 55.3 for February, below estimates of 58.7.

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

  • Las Vegas Sands shifts attention toward Asia.
  • HPE receives bull notes after stellar earnings report
  • Plus, options traders rush to MIK; KMPH leaps higher on FDA approval; and analysts chime in on Fubo stock after earnings.

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One stock seeing a surge in options activity today is Michaels Companies Inc (NASDAQ:MIK). So far today, 25,000 calls and 9,728 puts have crossed the tape -- a whopping 30 times what's typically seen at this point. The March 22.50 call is the most popular, followed by the March 20 put, with new positions being opened at both. Today's options activity comes after news that Apollo Global Management (APO) will take the company private for $3.3 billion. Now, MIK is up 70.2% year-to-date already, and currently trading at its highest level in nearly three years. 

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One stock soaring higher today is KemPharm Inc (NASDAQ:KMPH), up 76.3% to trade at $16.63 at last check. Today's gap higher comes after the U.S. Food and Drug Administration (FDA) approved the company's attention-deficit hyperactivity disorder (ADHD) treatment drug, AZSTARYS.  Further removing itself from its January consolidation at the $6 level, the equity is up around 44% year-to-date. 

Meanwhile, dropping lower on the New York Stock Exchange (NYSE) is FuboTV Inc (NYSE:FUBO). The shares are down 14.6% at $35.77 at last look, after the company reported much wider-than-expected fourth-quarter losses per share, despite higher-than-anticipated revenue. Furthermore, A class action lawsuit has commenced on behalf of certain shareholders. In response, no fewer than three analysts raised their price targets, while BMO cut its price target to $45 from $50. Today's drop has FUBO snapping a three-day win streak, though the equity is still up 26.3% year-to-date. 

 

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