Stocks Move Higher, Sentiment Boosted By Strong Earnings
Stock are extending their leads this afternoon, as strong third-quarter earnings reports continue to roll in. In turn, sentiment is rising despite rising cases of Covid-19, and the impact of the virus on the supply chain, which threatens to derail corporate America's profit recovery. Keeping a lid on gains, however, is a slew of economic data, including a wider-than-expected drop in housing starts and disappointing building permits data. At last check, the Dow Jones Industrial Average (DJI) is up around 145 points, while the Nasdaq Composite (IXIC) and S&P 500 Index (SPX) also sport considerable leads.
One stock seeing a healthy amount of call activity today is DiDi Global Inc (NYSE: DIDI), with 49,000 calls crossing the tape already today, which is five times the intraday average. By far, the most popular contract is the weekly 10/29 9-strike call, where new positions are being bought to open. DiDi Global stock is up 2.7% at $8.46, though the catalyst for today's jump remains unclear. The China-based ride-hailing giant is still facing pressure from the $8.50 level while facing off with the newly formed 60-day moving average. In the last three months, DID has shed nearly 25%.
At the top of the New York Stock Exchange (NYSE) is Full Truck Alliance Co Ltd (NYSE: YMM), last seen up 13.4% at $16.31, though the equity topped out near $16.50 earlier in the day. Although the catalyst for the breakout is unknown, Full Truck Alliance stock is seeing support from the 10-day moving average once again, which has put pressure on the shares for the better part of October. An NYSE newbie, the equity went public in June, and is up 7% for the quarter.
Near the bottom of the NYSE is Silvergate Capital Corporation (NYSE: SI), last seen down 12.5% to trade at $138.48, despite an upbeat third-quarter earnings report. Specifically, Silvergate reported earnings and revenue that topped Wall Street's estimates, and record cryptocurrency deposits which grew to $11.2 billion. Up an incredible 675.3% year-over-year, today's dip marks the equity's biggest single-day pullback since April.
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