BABA and JD are on the rise after the U.S. and China cut tariffs temporarily
Stocks are soaring today, after the U.S. and China agreed to cut "reciprocal" tariffs by 115% for 90 days, with plans for further negotiations in the coming weeks. Unsurprisingly, U.S.-listed shares of China-based stocks JD.com Inc (NASDAQ:JD) and Alibaba Group Holding Ltd (NYSE:BABA) are on the rise, up 6.3% and 6.5% at last check, respectively.
JD.com stock is trading at $35.92, staging a nice little bounce off its 320-day moving average. The equity has now reclaimed its year-to-date breakeven level, and is 11.3% higher year-over-year.
BABA is trading at its highest levels since late March, making a run at its March 17 three-year high of $148.43. Since the start of the year, the stock is up 56.6% and has support in place at its 200-day trendline.
Options bulls are targeting both stocks after the news, with both names seeing double the usual call volume typically seen at this point. For JD, the most popular contract is the June 35 call, while BABA is seeing the most activity at the June 120 call.
JD.com and Alibaba are both gearing up for their latest quarterly reports this week as well. The former will report before the open tomorrow, May 13, while the latter will report before the open Thursday, May 15.