Earnings in Focus as Dow Makes a Comeback

Oil has dropped back below $100 per barrel

Deputy Editor
Jul 12, 2022 at 11:47 AM
facebook twitter linkedin


The Dow Jones Industrial Average (DJI) is reversing this morning's losses, up 128 points midday, while the Nasdaq Composite (IXIC) and S&P 500 Index (SPX) struggle for direction. The start of earnings season is at the forefront of investors' minds today, as many watch for signs of economic pressure within company forecasts. Meanwhile, oil prices are falling sharply, with West Texas Intermediate (WTI) crude last seen down 7.3% to dip back below $100 per barrel. 

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

  • PepsiCo kicks off earnings season with a bang. 
  • Blue-chip stock slammed with bear notes
  • Plus, options bears blast CSX; GOEV soars on EV deal; and GROV falls lower.

MMC July12

CSX Corp (NASDAQ:CSX) is seeing an options surge today, with overall volume running at 11 times the intraday average. So far, 8,103 calls and 10,000 puts have crossed the tape, with the August 30 put seeing the most activity. Barclays slashed its price target by $2 to $39 earlier this morning. CSX is down 1.3% to trade at $28.47 at last glance, and was earlier as low as $28.14 -- nearing its July 5 18-month low of $28.09. 

The best performing stock on the Nasdaq so far today is Canoo Inc (NASDAQ:GOEV), after the electric vehicle (EV) maker made a deal to sell electric trucks to Walmart (WMT). GOEV is up 85.5% to trade at $4.39 at last glance, and was earlier as high as $5.00 -- a level that acted as support through the start of the year and could be coming in as resistance as the stock struggles to make it out of penny stock territory. Options traders are also targeting this stock, with overall volume at 101 times the intraday average. Year-over-year, the equity is still down 52.5%. 

GOEV July12

Meanwhile, among the worst stocks on the New York Stock Exchange (NYSE) is Grove Collaborative Holdings Inc (NYSE:GROV), last seen down 15.5% to trade at $5.02 and on the Short Sell Restricted (SSR) list. Today's drop could be correction from GROV's recent jump higher, after news that Kohl's, Meijer, and other stores have added its products to their shelves. The stock is down 48.8% year-to-date. 

 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners