Stocks Steered Lower Despite Stimulus, Vaccine Optimism

Stocks have pivoted lower midday, despite the optimistic sentiment surrounding reopening, the rollout of individual stimulus checks, and Covid-19 vaccinations. The Dow Jones Industrial Average (DJIand S&P 500 Index (SPX) are modestly in the red, the former reversing course after scoring a new intraday record high. The Nasdaq Composite (IXIC) has pivoted lower as well, as the 10-Year Treasury yield, now holding above 1.6%, remains a source of pressure on the market. 


One stock seeing a surge in options volume today is Discovery Inc (Nasdaq: DISCA). So far, 25,000 puts have crossed the tape, which is 18 times what's typically seen at this point, and volume already at an annual high. Most popular is the October 45 put, followed by the October 60 put, with new positions being opened at both. DISCA has been carving out a channel of higher highs since early January, with help from its 10-day moving average. Today, the stock is eyeing its fourth-straight win and snagged a record high of $74.52 out of the gate. Year-to-date, the equity is already up an impressive 144%. 


Scaling the New York Stock Exchange (NYSE) today is Shaw Communication Inc (NYSE: SJR). The stock is up 35.5% to trade at $25.90 at last check, after news that Canada-based Rogers Communications (RCI) will acquire Shaw for around $26 billion. Earlier hitting a 13-year high of $28.05, the stock is now up 72.8% year-over-year. 

Conversely, Alpha Metallurgical Resources Inc (NYSE: AMR)is near the bottom of the NYSE. AMR was last seen down 9.1% at $14.10, after the coal company's dismal fourth-quarter report and reiterated 2021 guidance. Falling further from its recent March 9 annual high of $17.39, the equity is still up around 24% year-to-date. 

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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