© Reuters. 4 Rumors Driving Trading Action Today
By Investing.com Staff
Stocks staged an impressive rally off the lows today but failed to close in the green. Despite the drop, several rumors drove trading action in a number of stocks and markets. Below we highlighted a few:
Today’s intra-day bounce in stocks was said related to a “giant” $31 million options transaction.” The trade, according to a Wells Fargo strategist, involved the buying of 20,000 S&P 500 calls expiring in October with a strike price of 4,500, 14,000 bullish contracts expiring in March with a strike of 4,300, and the selling of 48,000 calls maturing in January with an exercise price at 4,500.
Emerson Electric (NYSE:) gained nearly 2% following reports from Bloomberg News it is talking with Blackstone (NYSE:) about selling some commercial and residential solutions assets for between $5-$10 billion. A Stephens analyst said the multiple that would be paid in a sale of the assets would be “well above” EMR’s current average.
Lumen (NYSE:) shares fell nearly 10% on concerns about the dividend which were brought up by a Wells Fargo analyst who downgraded the shares today. The analyst sees ~20% or more downside risk in the event of a 50% dividend cut.
Beyond Meat (NASDAQ:) surged off lows today on speculation it would be a target of a takeover, according to the opinion of a Reuters Breaking Views writer. The writer says the current price levels, make it an attractive takeover target.
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