Wall Street set for another red day as rates surge on September’s jobs report (PFE, NVO,JNJ,MRK)￼
Wall Street is waking up to the news of slowed job growth in September as payrolls rose just 263,000 amid Fed rate hikes. Markets are pulling back here at 8:30am on this news.
Whats does the chart depict ?
$378 is the 20 SMA and that is the next big area to observe break to the topside, which we think could trigger a potential move higher. Downside, its important to keep an eye on Thursday’s low of $371 area as key support on any bigger pullback. If we break this level into a Friday, Wall Street may be looking to play the fade back into $360s with puts.
One stock that could potentially be on a breakout is Pfizer Inc (NYSE:PFE). PFE had a rough day yesterday hitting its lows of the year. However, price at $43 is at a key support and resistance area.
Despite this weakness yesterday and yearly lows, almost 100,000 calls were purchased, almost half at or above ask and 73% of those were for Delta of under 20% (mean the least likely to work out AKA most risky). In fact, someone bought $175,000 worth of November $52.5 Calls (25,000 Contracts) at $.07. Some also bought almost 20,000 contracts for December $55 Calls at $.07. Those are one heck of a lotto ticket. Now its risky to catch a falling knife but one could consider taking a shot at previous key support and resistance at $43 in PFE.
Other companies in Pfizer’s space includes: Novo Nordisk (NYSE:NVO), Johnson & Johnson (NYSE:JNJ), Merck & Co (NYSE:MRK), Novartis (NYSE:NVS) and Jazz Pharmaceuticals (NASDAQ:JAZZ)