Stocks Eye Sizable Weekly Wins With Stimulus In Focus

The major indexes are attempting to build off this morning's gains, as traders brush off a worse-than-expected January jobs report. The Dow Jones Industrial Average (DJI) is up roughly 76 points at midday, while the S&P 500 Index (SPXis firmly in the black, with both indexes on pace to nab their fifth consecutive wins. Meanwhile, the Nasdaq Composite (IXIC) is also higher, and all three benchmarks are eyeing their best week since November.

Some of this optimism seems to stem from hopes that this round of disappointing jobs data may speed up stimulus negotiations. Meanwhile, the Senate just passed a budget resolution, and Democrats continue to push for a $1.9 trillion emergency relief bill, with or without Republican support. 

miday stats feb 5

Stay-at-home staple Zoom Video Communications Inc (Nasdaq: ZMis seeing a massive surge in options activity today. While the catalyst isn't completely clear, the security is up 5.6% at $411.77 this afternoon and pacing for its highest settlement in over a month. On the charts, Zoom stock has been attempting to recover from several sharp pullbacks it suffered in November. The equity has added over 21% year-to-date, and just toppled overhead pressure at its 60-day moving average, which has kept a lid on shares since those bear gaps. Circling back to the options pits, so far 161,000 calls and 36,000 puts have exchanged hands, which is three times the intraday average. The most popular contracts are the weekly 2/5 420- and 410-strike calls, with positions being opened at both. This indicates investors are expecting more upside for ZM by the time contracts expire this evening. 

ZM Feb 5

Insurance provider Atlantic American Corporation (Nasdaq: AAME) is one of the top-performing stocks on the Nasdaq today, last seen up 328.7% to trade at $10.25. Though there doesn't seem to be a clear reason, the equity earlier hit an all-time high of $14.24, pushing past long-time pressure at the $2.80 level. Now, AAME sports a nine-month lead of over 556%. 

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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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