Dow Set To Erase Losses As Stocks Extend Rebound

The Dow Jones Industrial Average (DJIis up 257 points this afternoon, on pace to completely erase Monday's selloff as investors sift through a slew of blue-chip earnings reports. The S&P 500 Index (SPXand tech-heavy Nasdaq Composite (IXIC) are also sporting solid gains, with the latter brushing off a worse-than-expected quarterly report from Netflix (NFLX).

Reopening plays are also set to extend their rebound today, despite falling earlier in the week due to reemerging Covid-19 delta variant fears. However, a number of strategists are now predicting a steep pullback, as traders continue to weigh inflation and virus concerns.


One stock getting blasted in the options pits today is cloud content management platform Box Inc (NYSE: BOX), down 3.6% to trade at $22.89 at last check. Today's dip came after RBC initiated coverage of the equity with an "underperform" rating, as well as a $19 price target, which is a 20% discount to last night's close. The analyst in question noted slowing growth, uneven execution, and increased competition. So far, 7,140 puts have already crossed the tape, which is five times the intraday average. Most popular is the September 23 put, followed by the 25 put in the same series. The equity has been tumbling down from its July 2, three-year high of $27.40 in recent weeks, though the $22.50 level seems to have emerged as a floor. In the past nine months, BOX has added 38.8%.

Near the top of the Nasdaq, today is Chembio Diagnostics Inc (Nasdaq: CEMI), last seen up 182% at $5.81, after the company received a $28.3 million order for its Covid-19 rapid antigen detection tests from Brazilian drugmaker Bio-Manguinhos, to be delivered later this year. The security is currently trading at its highest level since February, blowing past resistance at the 40-day moving average, which had been guiding shares lower since March. Month-to-date, Chembio Diagnostics stock now boasts a 96.2% lead.

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