Oil prices are higher on lingering U.S.-Iran tensions
After a quiet start, the Dow Jones Industrial Average (DJI) is on track for a record close, as energy stock Chevron (CVX) rallies with oil prices. August-dated crude was last seen up 0.7% at $57.48 per barrel, as tensions between the U.S. and Iran linger. In addition, traders are cheering Vice President Mike Pence's comments of "positive signs" on trade with China. And despite this morning's IHS Markit flash purchasing managers index (PMI) for June -- which fell to its lowest point since 2009 -- the S&P 500 Index (SPX) tagged another all-time intraday peak not long ago, and the Nasdaq Composite (IXIC) is headed for its fifth straight win alongside its index peers.
Continue reading for more on today's market, including:
- Options volume spikes on surging drug stock.
- Day traders think Caterpillar stock will snap its win streak.
- Plus, Opko Health options bull strikes; Catalent hits new highs; and the cruise stock near the bottom of the Big Board.
Options bulls are blitzing Opko Health Inc. (NASDAQ:OPK) today, with 6,916 calls on the tape so far -- 24 times what's typically seen at this point in the day -- compared to just 14 puts. Most notable is a block of 3,509 September 2 calls that was likely bought to open for $0.40 apiece, making breakeven at September expiration $2.40 (strike plus premium paid).* OPK stock is up 0.5% today at $2.04, but remains roughly 32% lower year-to-date.
Catalent Inc (NYSE:CTLT) is near the top of the New York Stock Exchange (NYSE), after Jefferies upgraded the drug developer to "buy" from "hold," and lifted its price target to $62 from $50 -- a 23% premium to last night's close. CTLT stock is up 4.7% at $52.65, fresh off a record high of $53.36, and has now rallied 80% off its late-December lows.
Carnival Corp (NYSE:CCL) is one of the worst stocks on the Big Board, after the cruise operator's downwardly revised full-year profit forecast was met with a round of bearish brokerage notes -- including a downgrade to "neutral" at Instinet. CCL stock is down 4.7% at $46.49, closing in on its Dec. 26 two-year low at $45.65.
*This sentence has been updated to correct the purchase price and breakeven. We apologize for the error.