Dow Extends Morning Rally, Up More Than 600 Points

News that President Biden may ease tariffs on Chinese imports is boosting sentiment

Digital Content Manager
May 23, 2022 at 11:50 AM
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The Dow Jones Industrial Average (DJI) is extending its morning gains at midday, last seen up 693 points, amid news that U.S. President Joe Biden may ease tariffs on Chinese imports. Both the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also sporting sizable gains this afternoon, as all three major benchmarks look to bounce back from weekly losing streaks. Elsewhere, the Cboe Volatility Index (VIX), known as Wall Street's "fear gauge," is firmly in the red.

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

  • Analyst calls tech stock a "defensive growth story."
  • Electronic Arts stock edges higher on buyout rumors.
  • Plus, options traders eye BBY ahead of earnings; unpacking this cloud stock's latest surge; and Carvana stock struggling to bounce off lows.

MMC Stats 0523

Best Buy Co Inc (NYSE:BBY) is getting blasted in the options pits today. So far, 40,000 puts and 15,000 calls have been traded, or 15 times the volume that is typically seen at this point. Most popular is the June 65 put, where positions are being opened, followed by the 80 put in the same monthly series. The security is down 2.1% to trade at $70.83 at last check, ahead of the tech retailer's first-quarter earnings report, which is due out before the open tomorrow, May 24. BBY has a disappointing history of post-earnings reactions, finishing five of eight next-day sessions lower over the last two years. The shares are just off a May 20, two-year low of $69.10, and are down 39.3% year-over-year.

One of the best performers on the New York Stock Exchange (NYSE) today is VMware, Inc. (NYSE:VMW), last seen up 20.1% at $114.81. Today's massive bull gap came after reports that Broadcom (AVGO) is in talks to buy the cloud computing name, and is also days ahead of the its first-quarter earnings report, due out after the close on Thursday, May 26. The stock is now trading at its highest level since mid April, breaking through overhead pressure at the 40-day moving average, which has been pressuring shares lower since February. In the last 12 months, though, VMW remains down 13.5%.

VMW 40 Day

Towards the bottom of the NYSE is Carvana Co (NYSE:CVNA). The equity is down 12.4% at $29.37 at last check, though there was no clear catalyst for today's negative price action. Carvana stock has struggled to bounce back from a May 12, two-year low of $28.40, with the 10-day moving average guiding the shares lower since late March. Year-to-date, CVNA is down 87.3%.


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