The Dow Jones industrial average closed higher for the first time in six sessions on Wednesday, recovering from sharp losses seen earlier in the day, as Boeing soared on strong earnings.
Boeing rose 4 percent after reporting quarterly results that easily beat analyst expectations. The stock’s rise assisted the Dow bounce back from a 201.05-point deficit and snap a five-day losing streak. The Dow closed at 24,083.83, up 59.70 points.
The S&P 500 also erased earlier losses, closing 0.18 percent higher at 2,639.40. The Nasdaq composite, meanwhile, slipped 0.05 percent to 7,003.74.
Stocks fell sharply earlier in the day as interest rates rose to levels not seen in years.
The benchmark 10-year Treasury yield traded at 3.03 percent after breaking above 3 percent for the first time since 2014 on Tuesday. Shareholders are worried rising borrowing costs may slow the economy and hurt companies’ ability to buy back their own stock.
Financial markets around the globe fell as yields rose, with European and Asian indexes closing in the red Wednesday.
U.S. equities fell sharply in the previous session, with the Dow dropping more than 400 points and the S&P 500 and Nasdaq both declining more than 1 percent.
The recent market volatility is taking place despite a string of strong corporate earnings. Of the S&P 500 companies that have stated thus far, 81 percent have topped analyst expectations, according to Thomson Reuters I/B/E/S.
“Earnings have been strong, but right now the market has a high bar for earnings with the tax cut in place,” said Jeff Zipper, managing director of investments at U.S. Bank Wealth Management. “The market also appears to be looking for any bad news” to sell. (Source: CNBC)
Top Pick for Thursday: Riot Blockchain Inc (NASDAQ: RIOT)
Riot Blockchain Inc (NASDAQ: RIOT) has grabbed attention from the analysts when it experienced a change of -2.90% in the last trading session to close at $7.36. A total of 673,477 shares exchanged hands during the intra-day trade contrast with its average trading volume of 1.54M shares, while its relative volume stands at 0.44. Relative volume is the comparison of current volume to average volume for the same time of day, and it’s displayed as a ratio. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it. If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name. When stocks are *very* In Play one can see a RVOL of 5 and above. The higher the RVOL the more In Play the stock is.
Day traders strive to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures, and options are traded as well), usually leveraging large amounts of capital to do so, therefore they trade on Stocks in Play. In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. Most company stocks have very little volatility. They generally move extremely slowly and they only produce big price swings when the company produces good or bad trading results, which may only happen a couple of times a year at best.
In deciding what to focus on – in a stock, say – a typical day trader looks for three things: liquidity, volatility and trading volume. Liquidity allows an investor to enter and exit a stock at a good price (i.e. tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the predictable price of a trade and the actual price). If a stock does not have good liquidity then it may take some time before a broker is able to negotiate a deal to buy or sell a stock and the broker may not be able to get the sell or buy price that the trader is looking for. This is a problem for day traders and it could mean the difference between a profitable and non-profitable trade.
Traders have different rules for what constitutes liquidity and a good guide is the volume of trades and volume of shares that are traded each day. 100,000 shares traded per day would be a minimum for most traders and some require 1,000,000.
Trading volume is a gauge of how many times a stock is bought and sold in a given time period (most commonly, within a day of trading, known as the average daily trading volume – ADTV). A high degree of volume indicates a lot of interest in a stock. Often, a boost in the volume of a stock is a harbinger of a price jump, either up or down.
Volatility is simply a measure of the predictable daily price range—the range in which a day trader operates. More volatility means greater profit or loss. After a recent check, Riot Blockchain Inc (NASDAQ: RIOT) stock is found to be 8.57% volatile for the week, while 10.44% volatility is recorded for the month.
The stock has a market cap of $100.17M and the number of outstanding shares has been calculated 13.61M. Based on a recent bid, its distance from 20 days simple moving average is 7.67%, and its distance from 50 days simple moving average is -17.69% while it has a distance of -28.19% from the 200 days simple moving average. The company’s distance from 52-week high price is -84.07% and the current price is 142.74% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 49.62 together with Average True Range (ATR 14) of 0.72.
Past 5 years growth of RIOT observed at N/A, and for the next five years the analysts that follow this company is expecting its growth at 20.00%. The stock’s price to sales ratio for trailing twelve months is 10638.23 and price to book ratio for the most recent quarter is 1.35, whereas price to cash per share for the most recent quarter are N/A. Its quick ratio for the most recent quarter is N/A. Analysts mean recommendation for the stock is 3.00. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
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