Existing home sales fell by 1.7% in June
The Dow Jones Industrial Average (DJI) is enjoying solid gains today, thanks to a strong earnings reaction for blue chip Coca-Cola (KO). News that Apple (AAPL) is buying Intel's (INTC) modem business is also creating tailwinds for the Dow. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are higher, too, on a post-earnings pop for toy stock Hasbro (HAS). Today's positive price action comes despite a drop in existing home sales, which fell by 1.7% in June, greater than the anticipated 0.2% dip.
Continue reading for more on today's market, including:
- Analyst makes big call on Spotify stock.
- History says it's time to drop this drug stock.
- Plus, options bears eye L Brands; Biogen breaks out after earnings; and PulteGroup sinks on a dismal home sales forecast.
L Brands Inc (NYSE:LB) is seeing accelerated options trading today. Almost 14,000 put options have traded -- nine times what's typically seen at this point in the day, and 13 times the number of calls traded. Leading the charge is the August 24.50 put, where new positions are being purchased. At last check, the recently downgraded retail stock was down 1.2% to trade at $24.81, so options bears are banking on LB sinking below $24.50 over the next several weeks.
Biogen Inc (NASDAQ:BIIB) is near the top of the S&P 500 today, up 4.7% to trade at $244.64, after the drug name reported second-quarter earnings and revenue that exceeded analyst expectations. BIIB and is on track to topple its 100-day moving average for the first time in months, but is running out of steam near its mid-March bear gap.
On the other end of the spectrum is PulteGroup, Inc. (NYSE:PHM), down 6.5% to trade at $31.31, after the homebuilder's full-year home sales forecast came in below analyst estimates. This has overshadowed the company's second-quarter earnings and revenue beats. PHM nabbed an annual high of $34.02 yesterday, but today's pullback has the shares breaching their 80-day moving average for the first time since late March.