The DJIA has overcome early morning losses to trade higher, led by a healthcare rally
The Dow Jones Industrial Average (DJIA) has whipsawed across both sides of breakeven so far today, managing to recover from steep losses to boast a triple-digit gain. Markets around the world were initially rocked by Donald Trump's surprising victory over Hillary Clinton in the U.S. presidential election, but certain sectors are celebrating, including pharmaceutical stocks, with Pfizer Inc. (NYSE:PFE) and Merck & Co., Inc. (NYSE:MRK) leading the Dow's turnaround. The S&P 500 Index (SPX) and Nasdaq Composite (COMP) are following closely in the Dow's footsteps, reversing early losses to sit higher at midday. December-dated crude futures have also performed a 180, despite another weekly rise in domestic oil stockpiles, up 1.8% at $45.77 per barrel.
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Among the stocks with unusual options volume at midday is hospital operator HCA Holdings Inc (NYSE:HCA), which is currently down 15.2% at $68.56, and on the short-sale restricted list. In the wake of Trump's win, HCA and its sector peers were the focus of some bearish analyst attention, with Mizuho Securities citing "extreme risk of [Obamacare] repeal/replace." HCA options are currently crossing at six times their average daily pace, with puts leading calls 8,869 to 6,729, while HCA stock volume is set for an annual high.
Biotech Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP) is among the top performers on the Nasdaq today, trading 28.6% higher at $14.60. The stock is enjoying a trifecta of upward catalysts: solid earnings and upwardly revised full-year revenue guidance, an announcement that SCMP has reached a settlement and license agreement with Dr.Reddy's Laboratories Ltd (ADR) (NYSE:RDY) for its constipation drug, and a biotech rally. SCMP still remains down nearly 15% since the beginning of 2016, but is on pace to topple its 320-day moving average for the first time this year.
Biotech Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR) is among the worst performers on the Nasdaq today, defying the drugmaker halo lift, down 29.5% at $4.31, and currently on the short-sale restricted list. The Food and Drug Administration (FDA) put a mid-stage trial of ARWR's hepatitis B treatment on hold, and ARWR shares are now down nearly 30% since the beginning of 2016, and today's drop has pushed ARWR below the recent support of its 200-day moving average, which helped contain several other declines since April.
The CBOE Volatility Index (VIX) is down 3.5 points, or 18.4%, at $15.29.
Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.21, with puts more than doubling calls, and options running at twice the average intraday clip. At last check, SPY was up 0.7%, or 1.4 points, at $215.53.
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