Dow Erases Triple Digit Lead After Dismal Housing Data

The S&P is heading toward its sixth straight loss

Managing Editor
Oct 24, 2018 at 12:10 PM
facebook twitter linkedin

The Dow Jones Industrial Average (DJI) has explored a more than 400-point range on both sides of breakeven today. While strong earnings from Boeing (BA) initially propped the blue-chip index up over 100 points, a disappointing reading on new home sales -- which fell 5.5% to a roughly two-year low last month -- has soured investor sentiment, putting the Dow on track for its third straight loss.

The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also both in the red, with the former pacing toward a sixth straight loss and the latter flirting with correction territory, as tech stocks sell off on a dismal warning from chipmaker Texas Instruments (TXN) . Elsewhere, oil prices continue to climb out of yesterday's hole, with December-dated crude futures up 0.8% at $66.97 per barrel.

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

  • Goldman Sachs says to buy the dip on this Boeing rival.
  • Bearish analysts blasted struggling JetBlue stock.
  • Plus, options bears target downgraded Seagate Technology stock; Lowe's stock rebounds; and Trivago rallies into familiar resistance.

Midday Market Stats Oct 24

Seagate Technology PLC (NASDAQ:STX) is seeing unusual options volume today, with nearly 5,900 puts on the tape -- double the expected intraday amount. Most active is the December 42.50 put, and data suggests buy-to-open activity here. STX is down 4.6% to trade at $41.47, after being downgraded to "negative" from "neutral" at Susquehanna.

Lowe's Companies, Inc. (NYSE:LOW) is up 0.4% to trade at $98.53, on track to snap a five-day losing streak. LOW has shed 16% since its late-September record high of $117.70, but the pullback appears to have been contained by its 160- and 200-day moving averages. Not to mention, the home improvement stock historically tends to outperform in the fourth quarter.

Trivago NV (NASDAQ:TRVG) is up 20% to trade at $5.93, one of the best stocks on the Nasdaq today, after the travel company reported a third-quarter profit. Last year at this time, TRVG gapped 22.5% lower after earnings. Nevertheless, the stock is running out of steam near famililar resistance around the site of its 40-week moving average.

MMC Daily Chart TRVG


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners