Q2 STOCKS TO BUY

Biotech Stock Doubles; Plus, Dow Defies Downgrade

After touching a record low, DOW shares are leading the blue chips

Aug 16, 2019 at 3:09 PM
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U.S. stocks are higher with bond yields today, though the major indexes are still pacing for a third straight weekly loss. Among stocks making notable moves are chemical concern Dow Inc (NYSE:DOW) and biotech Plus Therapeutics Inc (NASDAQ:PSTV). Here's a quick look at what's moving the shares of DOW and PSTV.

Dow Stock Shrugs Off Downgrade

After earlier touching a record low of $42.79, Dow stock has reversed higher to lead Dow Jones Industrial Average (DJI) components. The equity is shrugging off a downgrade to "underperform" from "neutral" at BofA-Merrill Lynch, which also slashed its price target to $41 from $55 -- deeper into uncharted territory -- on expectations for "sluggish demand." At last check, DOW shares have added 3.1% to trade at $44.71.

It's been a rough August for the blue chip, which is pacing for a monthly loss of about 8%. The equity kicked off the month by barreling south of previous support in the $47-$48 neighborhood, which contained pullbacks in June and July. However, should the stock resume its quest for all-time lows, more downgrades could ensue. Heading into today, DOW sported six "buy" or better ratings, compared to 11 lukewarm "holds" and not a single "sell."

PSTV More Than Doubles After Earnings

Plus Therapeutics -- formerly Cytori Therapeutics -- stock is at the top of the Nasdaq today. The security was last seen 169% higher at $10.43, and earlier peaked at $15.13 -- more than four times yesterday's close of $3.88 -- with traders apparently reacting to the company's earnings report. However, PSTV stock's upward momentum stalled at its 200-day moving average, which has acted as a ceiling for the shares since May.

Prior to today, the security was trading in all-time-low territory, falling as low as $3.80 yesterday. The stock spent the bulk of 2019 bouncing along support in the $11 region, before a 1-for-50 reverse stock split in early August. However, PSTV today is set to erase its August deficit.

 
 

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