Government Shutdown Comments Spook Dow

Stock markets are jittery after President Trump vowed to build a wall at the risk of a government shutdown

Managing Editor
Aug 23, 2017 at 11:58 AM
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The Dow Jones Industrial Average (DJIA) is lower at midday, as markets continue to process President Trump's remarks about a government shutdown and the possible end of NAFTA. The U.S. government could default if the debt ceiling isn't lifted by late September. The S&P 500 Index (SPX) and Nasdaq Composite (COMP) are also lower, while the CBOE Volatility Index (VIX) -- Wall Street's "fear gauge" -- continues to hold above the key 11.25 level, and is on pace for its first gain in four sessions. Elsewhere, traders are digesting an unexpected drop in July new home sales, which fell to a seven-month low.

Continue reading for more on today's market -- and don't miss:

  • The VIX signal that has bears excited.
  • Analyst: 'Buy' this FAANG stock.
  • Plus, SNAP options traders eye a rally; American Eagle's earnings victory; and Lowe's stock tests a key level.

Midday Market Stats Aug 23

Among the stocks with unusual options volume is Snapchat parent Snap Inc (NYSE:SNAP), with roughly 57,000 calls traded -- almost double the average intraday pace and on track to finish in the 97th percentile of its annual range. Most of the action centers around the weekly 8/25 14- and 14.50-strike calls, where over 15,000 contracts have been traded today between the two. SNAP stock is currently up 3.3% to trade at $15.01, and has rallied 33% since touching a record low of $11.28 after earnings earlier this month.

American Eagle Outfitters (NYSE:AEO) is up 6.7% at $11.96, near the top of the New York Stock Exchange (NYSE) today, after reporting second-quarter earnings that exceeded expectations, and a surprise bump in same-store sales figures. The retail stock fell to a three-year low of $10.23 on Monday, but is taking aim at its 100-day moving average -- a trendline not topped since December.

Midday Market Chart AEO

Home improvement retailer Lowe's Companies, Inc. (NYSE:LOW) is among the worst stocks on the NYSE, down 5.3% to trade at $71.75. The drop comes after the company reported disappointing second-quarter earnings and trimmed its full-year forecast for operating margins. LOW stock is now trading in territory not seen since January, testing its year-to-date breakeven level.

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