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).