Dow Extends Gains As Reopening Stocks Make Comeback

The Dow Jones Industrial Average (DJI) is up nearly 300 points midday, as reopening stocks rebound from the previous session's selloff. The S&P 500 Index (SPX) is sitting in the black as well, albeit much more modestly, while the Nasdaq Composite (IXIC) is struggling just below breakeven. In terms of sentiment surrounding Covid-19, a global spike in cases is at odds with the rapidly increasing vaccination rate in the U.S. Meanwhile, according to the IHS Markit manufacturing gauge, the U.S. economy grew in March. 

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One stock seeing a surge in options volume today is the broadcasting name ViacomCBS Inc (Nasdaq: VIAC). So far, 171,000 puts and 61,000 calls have crossed the tape, with overall volume running at six times what's typically seen at this point. The weekly 4/1 77-strike call is the most popular, where it looks like new positions are being sold to open, suggesting these traders are eyeing the $77 mark as a ceiling for the underlying equity. VIAC is down 15.8% at $76.76 at last check, after the company priced nearly $3 billion in stock offerings. Now contending with its 20-day moving average for the first time since December, the stock is still up 108.4% year-to-date. 


One of the top performers so far on the Nasdaq today is Aptose Biosciences Inc (Nasdaq: APTO). The equity is up 80.9% to trade at $6.63 at last look, after the company reported positive data from its blood cancer therapy study. Furthermore, following yesterday's earnings report, Piper Sandler raised its price target to $12 from $10, while Oppenheimer adjusted its price target to $9 from $8. Today's pop has the equity breaking past a slew of moving averages for the first time since its early December bear gap that plummeted it into penny stock territory. 

Meanwhile, one of the worst-performing stocks on the New York Stock Exchange (NYSE) is the ever-popular GameStop Corp. (NYSE: GME). The electronic name is down 17.7% to trade at $149.50 at last check after the company announced a potential share offering. To follow, Wedbush chimed in with a downgrade to "underperform" from "neutral," with a price-target hike to $29 from $16. Furthermore, Jefferies raised its price target to an incredible $175 from $15, while Telsey Advisory Group cut its objective to $30 from $33. Year-to-date, the equity is still up around 685% thanks to this year's Reddit-fueled rally. 

Disclaimer: Schaeffer's Investment Research ("SIR" or "we" or "us") is not registered as an investment adviser. SIR relies upon the "publishers' ...

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