Stocks Extend Rebound on Trade Deficit, Jobs Data

Continuing jobless claims fell below 3 million for the first time since March 2020

Deputy Editor
Aug 5, 2021 at 12:11 PM
facebook twitter linkedin


Stocks are extending this morning's gains, rebounding from yesterday's slump as investors unpack a slew of economic data. Initial jobless claims for last week came in at 385,000 -- in line with estimates, and lower than the previous week -- while continuing jobless claims fell below 3 million for the first time since March 2020. Meanwhile, the U.S. trade deficit climbed to a record 6.7% in June. The Dow Jones Industrial Average (DJI) was last seen up 191 points, while the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are firmly in the black as well.

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

  • Checking in with DKNG ahead of tomorrow's earnings report.
  • Watch this online education stock amid the Covid-19 surge. 
  • Plus, DDOG and SITM hit record highs; and why NVRO is trading at annual lows.

MMC 0805

One stock seeing a surge of options activity today is Datadog Inc (NASDAQ:DDOG), last seen up 14.8% to trade at $131.95, and earlier gapping to a record high of $135.38, after a strong second-quarter earnings report. So far, 42,000 calls and 13,000 puts have crossed the tape, which is 12 times what is typically seen at this point. Most popular is the weekly 8/6 135-strike call, followed by the 140-strike call in the same series, with new positions being opened at both. The 30-day moving average has been a solid source of support for the security since May, containing several pullbacks in recent weeks.

DDOG MMC

SiTime Corp (NASDAQ:SITM) is one of the best-performing stocks on the Nasdaq today. Shares are up 35.2% at $190.56 at last check, after the company reported better-than-expected second-quarter earnings of 46 cents per share, alongside a revenue beat. To follow, Barclays raised the security's price target to $175, while both Raymond James and Needham hiked it to $180. Earlier, the security reached a new all-time high of $195, and is now up 233.8% year-over-year. 

Meanwhile, one of the worst stocks on the New York Stock Exchange (NYSE) is Nevro Corp (NYSE:NVRO), last seen down 26.3% to trade at $109.02. The medical equipment concern reported narrower-than-expected second-quarter losses, but pulled its full-year forecast due to Covid-19 concerns. In turn, four analysts chimed in with downgrades: Canaccord Genuity to "hold," William Blair to "market perform," and Piper Sandler and Citigroup to "neutral." Plus, the equity earned 10 price target-cuts. Today's drop has NVRO trading at fresh annual lows. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners