All three major indexes are lower, but headed for weekly wins
The Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq Composite Index (IXIC) are modestly lower midday, though all three are still on track for weekly gains. Investors are unpacking this morning's cooler-than-expected inflation data, as well as the U.S. trade deficit, which narrowed by a sharp 46% in April, and consumer sentiment, which rose to 52.2 from 50.8 in early May. Of course, trade tensions are also in focus, after President Trump said China violated its preliminary trade agreement.
Continue reading for more on today's market, including:
- Cloud stock has short squeeze potential amid 3-year highs.
- Behind Gap stock's post-earnings plummet.
- Plus, options traders target DELL; and two biotech stocks making outsized moves.
Options traders are targeting Dell Technologies Inc (NYSE:DELL) today, with 65,000 calls and 46,000 puts exchanged so far -- already 5 times the overall volume it typically sees in an entire session. The weekly 5/30 120-strike call is the most popular, with new positions being sold to open there. The company reported a first-quarter earnings miss, beat revenue estimates, and lifted its annual forecast on artificial intelligence (AI) demand. Several analysts lifted their price targets after the event. Still, DELL is down 1% at $112.45, with firm resistance at the 320-day moving average.
Biotechnology stock BioLine RX Ltd (NASDAQ:BLRX) was last seen up 94.1% at $7.36, soaring back out of penny stock territory, where it has resided since January. The company announced promising data from a pilot phase trial of its pancreatic cancer treatment, after which JonesTrading upgraded the stock to "buy" from "hold." Year-to-date, the equity is still down 14.7%.
On the other hand, sector peer Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is down 18% at $496.50, hitting four-year lows as it heads for its worst single-day percentage loss since 2011. The company's experimental drug, itepekimab, failed in a late-stage trial for the treatment of "smoker's lung," though it met another goal of the study. Since the start of the year, REGN is down 30.7%.