Dow Sinks 500 Points as Tech Losses Mount

TSLA shares are hitting new lows

Apr 2, 2018 at 12:03 PM
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U.S stocks are extending their losses at midday, with the Dow Jones Industrial Average (DJI) down nearly 500 points at last check. A Trump-induced Amazon (AMZN) sell-off is rocking the tech sector once again, and an extended slide to fresh lows from Tesla (TSLA) is grabbing headlines, as well. Lingering fears of a trade war are only adding to the bearish backdrop, while investors also react to today's economic data. Specifically, Markit's purchasing managers manufacturing index (PMI) for March jumped to a roughly three-year high, and the Institute for Supply Management's (ISM) manufacturing survey for the same period fell just shy of expectations but remained near 14-year highs. Plus, construction spending in February rose slightly less than expected.

Continue reading for more on today's market, including:

  • The downgraded tech stock that just hit record lows.
  • Analyst: Buy the dip on this restaurant stock.
  • Plus, call buyers flock to McDonald's strength; M&A buzz boosts health insurers; and why Wall Street is booing Live Nation.

midday market stats april 2

After dropping more than 9% in the first quarter, McDonald's Corporation (NYSE:MCD) is off to a strong start in the second quarter, up 1.6% today at $158.88, despite the broad-market headwinds. Options traders are moving in, too, with calls trading at almost two times the expected pace. The most popular contract is the weekly 4/6 162.50-strike call, which seems to be seeing buy-to-open activity. These bulls are betting on MCD stock rallying above $162.50 by week's end, when the contracts expire.

Humana Inc (NYSE:HUM) is also dodging today's headwinds, outperforming on the New York Stock Exchange (NYSE) with a 5.3% advance to trade at $283.02. The moves comes after reports of a potential buyout from Walmart (WMT), buzz that's giving many health insurance peers a list, as well. At the same time, HUM shares are already well off their intraday high of $290.53.

Live Nation Entertainment, Inc. (NYSE:LYV) is a big loser on the NYSE, following a New York Times report that the Justice Department is looking into whether the Ticketmaster parent violated an antitrust agreement. LYV shares are down 8% at $38.78, pacing for their lowest close since August, and their first below the 200-day moving average in over a year.

live nation stock

 

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