The Nasdaq and S&P hit record intraday highs earlier in the day
The Dow Jones Industrial Average (DJI) is up 200 points midday, eyeing its fifth win in the last six days, despite ADP data that missed analyst expectations for August. The Nasdaq Composite (IXIC) and S&P 500 Index (SPX) are confidently above fair value as well -- both hitting new intraday records at their session highs -- while the former toppled the round 12,000 level briefly. Also boosting sentiment today are comments from Dr. Anthony Fauci, who announced that a vaccine could come sooner than expected, given the positive data out of various companies.
Continue reading for more on today's market, including:
- This apparel name is surging after a surprise quarterly report.
- TDOC receives bull note as acquisition breeds confidence.
- Plus, retailer calls pop post-earnings; VRA surges after an unexpected second quarter; and WKHS falls after merger update.
One stock seeing notable activity in its options pits is Macy's Inc (NYSE:M), up 1.7% at $7.13 after the retailer reported much smaller-than-expected second-quarter losses, as well as expectations of a positive third quarter. So far, 131,000 calls and 36,000 puts have crossed the tape -- total options volume that is five times what's typically seen at this point. Most popular are the weekly 9/4 7- and 8-strike calls, with new positions being opened at both. Buyers of these calls are banking on more gains from M by Friday, when the contracts expire.
At the top of the Nasdaq today is Vera Bradley Inc (NASDAQ:VRA), surging up 26.2% to trade at $6.80 after a stellar second-quarter report. The company reported revenue of $131.77 million -- much higher than the anticipated $100.48 million -- alongside an earnings beat. Now contending with its 200-day moving average, the equity is trading at levels not seen in nearly three months. Year-to-date, VRA is still down 41%.
On the other hand, erasing this morning's gains to drop lower on the charts is Workhorse Group Inc (NASDAQ:WKHS), down 10% at $18.13 at last check. Although today's catalyst is unknown, on Monday the company entered strategic agreements with Hitachi and Hitachi Capital America Corporation. In the past three months, the stock is still up 531%, with its 40-day moving average containing last month's pullback.
