The Dow and SPX are both on track for weekly gains
The Dow Jones Industrial Average (DJI) is up over 215 points midday, brushing off U.S. Federal Chairman Jerome Powell's comments on the economy's pending outlook amid the spike in coronavirus cases. The blue-chip index and S&P 500 Index (SPX) are on track for solid weekly gains, their second straight.
Although the Nasdaq Composite (IXIC) is modestly higher today, the tech-heavy index is heading for its third weekly loss in the last four weeks. Market sentiment is teetering between the upbeat coronavirus vaccine news and the nationwide spread of infection that is causing states to reinstate lockdown restrictions. Nevertheless, Wall Street's "fear gauge," the Cboe Volatility Index (VIX) is heading for its lowest close since Aug. 28.
Continue reading for more on today's market, including:
- Best Buy stock could extend its rebound as work-from-home continues.
- Snack giant upgraded on Truco Enterprises acquisition.
- Plus, options bulls target China stock gains; UROV explodes higher on company buyout; and GFF plummets after quarterly results.
One stock seeing notable options activity is China-based Li Auto Inc (NASDAQ:LI), up 11.4% at $35.39 at last check, a new record high. Today's pop comes after the company's third-quarter revenue beat and better-than-expected fourth-quarter forecast. So far today, 96,000 calls and 47,000 puts have crossed the tape -- 4.4 times the usual daily volume already, with options volume pacing for the top percentile of its annual range. The November 40 call, where new positions are being opened, is by far the most popular position.
Urovant Sciences Ltd (NASDAQ:UROV) is soaring, up 93.7% at $16.04 at last check, after it was reported that its largest shareholder, Sumitovant Biopharma, will acquire the company's remaining stake for $16.25 per share -- after which it will merge entirely with a subsidiary of Sumitovant. To follow, Jefferies downgraded UROV to "hold" from "buy," and cut its price target to $16.25 alongside H.C. Wainwright. Today's bull gap has UROV scoring a new record high of $16.08 out of the gate, and on track for its best single-session gain ever.
Elsewhere, on the New York Stock Exchange (NYSE), Griffon Corporation (NYSE:GFF) is down 17.2% at $20.34, despite a positive fiscal fourth-quarter report, with earnings of 44 cents per share just barely beating out analyst estimates of 43 cents per share. To follow, Truist Securities cut its price target to $27 from $29, while Baird called today's weakness a buying opportunity and reiterated its "outperform" rating and $30 price target. Now at its year-to-date breakeven point, support at the 150-day moving average swooped in to catch today's pullback.
