Biotech Stock Doubles; Plus, Dow Defies Downgrade

After touching a record low, DOW shares are leading the blue chips

by Andrea Kramer

Published on Aug 16, 2019 at 3:09 PM

U.S. stocks are higher with bond yields today, though the major indexes are still pacing for a third straight weekly loss. Among stocks making notable moves are chemical concern Dow Inc (NYSE:DOW) and biotech Plus Therapeutics Inc (NASDAQ:PSTV). Here's a quick look at what's moving the shares of DOW and PSTV.

Dow Stock Shrugs Off Downgrade

After earlier touching a record low of $42.79, Dow stock has reversed higher to lead Dow Jones Industrial Average (DJI) components. The equity is shrugging off a downgrade to "underperform" from "neutral" at BofA-Merrill Lynch, which also slashed its price target to $41 from $55 -- deeper into uncharted territory -- on expectations for "sluggish demand." At last check, DOW shares have added 3.1% to trade at $44.71.

It's been a rough August for the blue chip, which is pacing for a monthly loss of about 8%. The equity kicked off the month by barreling south of previous support in the $47-$48 neighborhood, which contained pullbacks in June and July. However, should the stock resume its quest for all-time lows, more downgrades could ensue. Heading into today, DOW sported six "buy" or better ratings, compared to 11 lukewarm "holds" and not a single "sell."

PSTV More Than Doubles After Earnings

Plus Therapeutics -- formerly Cytori Therapeutics -- stock is at the top of the Nasdaq today. The security was last seen 169% higher at $10.43, and earlier peaked at $15.13 -- more than four times yesterday's close of $3.88 -- with traders apparently reacting to the company's earnings report. However, PSTV stock's upward momentum stalled at its 200-day moving average, which has acted as a ceiling for the shares since May.

Prior to today, the security was trading in all-time-low territory, falling as low as $3.80 yesterday. The stock spent the bulk of 2019 bouncing along support in the $11 region, before a 1-for-50 reverse stock split in early August. However, PSTV today is set to erase its August deficit.


a schaeffer's exclusive

5 NEW STOCK PICKS

We're celebrating 38 years with this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
Oil Volatile in Choppy Week for Stocks
Oil had its best day in over a decade on Monday
2 Stocks Analysts Are Talking About Today
Bofa-Merrill Lynch downgraded Xilinx, while Etsy was upgraded at RBC
How the 2020 Election Will Affect the U.S. Economy
The 2020 election could see some major changes in the American economic system.