Traders are shrugging off this morning's trade "update"
It's another day of weak price action for stocks on Wall Street, with traders mostly holding tight ahead of tomorrow's Fed decision. Ahead of the opening bell, it looked as though apparent headway in U.S.-China trade relations could lift stocks, but the risk-off sentiment has remained. The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are essentially flat at the halfway point, while the Nasdaq Composite (IXIC) outperforms slightly thanks to some big moves from drug stocks.
One name seeing unusual options trading is CVS Health Corp (NYSE:CVS), as the stock slumps 2.8% to $72.93, breaking support at the 20-day moving average. Put volume is running at twice the expected clip, and there are new positions opening at the December 73 put. Those buying the contract are expecting more downside in the coming weeks. CVS shares hit a new 52-week high of $77 just two weeks ago, and their 14-day Relative Strength Index (RSI) has been moving lower out of overbought conditions since that time.
One of the best stocks today is Magenta Therapeutics Inc (NASDAQ:MGTA), thanks to a gene therapy breakthrough. The shares have gained 16.6% to trade at $14.92, putting them on pace for their highest close since June. MGTA is now up 161% on a year-to-date basis.
Another healthcare stock on the rise is bluebird bio Inc (NASDAQ:BLUE), last seen 8% higher at $82.72. This comes after the drugmaker last evening presented data for its CAR-T cell therapy in patients with multiple myeloma, and Jefferies suggested that even higher doses of the treatment could result in better data down the road. BLUE shares are still fairly close to 52-week-low territory, though, and the 50-day moving average remains a level of chart resistance.
