Dow Maintains Triple-Digit Lead Ahead of Fed Comments

Federal Reserve Chairman Jerome Powell will address inflation this afternoon

Digital Content Manager
May 17, 2022 at 11:58 AM
facebook twitter linkedin

Stocks seem determined to break out of their recent rut at midday, though investors are still looking out for inflation comments from Federal Reserve Chairman Jerome Powell, due out later today. The Dow Jones Industrial Average (DJI) was last seen boasting a 203-point lead, as traders look for entry points following the recent selloff. Meanwhile, the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also eyeing sizable gains, with semiconductor and travel stocks enjoying tailwinds. In other news, consumer spending on retail saw a 0.9% jump last month, which was in line with estimates.

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

  • Why this blue-chip retail stock is surging today.
  • Bank stock pops on Warren Buffett's fresh stake.
  • Plus, options traders eye Chinese e-commerce stock; Sea stock surges on quarterly win; and unpacking HPK's tumble. 

MMC Stats 0517

JD.Com Inc (NASDAQ:JDis seeing an unusual amount of options activity today, after the Chinese company posted a first-quarter revenue beat, as consumers turned to its e-commerce platform during Covid-19 lockdowns. However, the outbreak has also led to logistics disruptions, and sluggish consumption amid impacts to income and consumer confidence. Still, traders are hopeful government regulations could soon ease. So far, 70,000 calls and 56,000 puts have already been exchanged, which is seven times the intraday average. Most popular is the May 48 put, followed by the June 55 call. Last seen up 3% to trade at $53.09, the shares earlier broke above a recent ceiling at the $54 level. In the last six months, JD has shed 40.5%. 

Sea Ltd (NYSE:SE) sits near the top of the New York Stock Exchange (NYSE) today, last seen up 16.5% to trade at $81.93. Today's pop came after the company posted smaller-than-expected first-quarter losses of $1.04 per share, and a revenue win of $2.90 billion thanks to e-commerce strength. Shares are now bouncing off a May 12, two-year low of $54.06, though long-time overhead pressure at the 40-day moving average remains. In addition, SE is down 65.4% year-to-date.

Towards the bottom of the Nasdaq is Highpeak Energy Inc (NASDAQ:HPK). The shares are down 18% to trade at $26.90, after the company yesterday reported first-quarter losses of 17 cents per share. The security is today trading at its lowest level since mid-April, though it still has the support of the 60-day moving average. Longer term, HPK still boasts a 216.9% year-over-year lead.

HPK 60 Day


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners