S&P Looks To Snap Losing Streak as Stocks Swing Higher

MSFT earnings are powering the Dow's big bounce

Managing Editor
Oct 25, 2018 at 12:06 PM
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The Dow Jones Industrial Average (DJI) is on the rebound today, up more than 350 points as earnings season hits high gear. A positive reaction for Microsoft's (MSFT) quarterly results has the tech stock at the top of the Dow, while the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are both confidently higher as well, with the former set to snap its six-day losing streak. In economic data, traders are digesting an unexpected rise in durable goods orders last month, while the U.S. trade deficit widened to a larger-than-anticipated $75.8 billion, and pending home sales rose 0.5% -- more than forecast.

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

  • 2 FAANG earnings to watch tonight.
  • Bears are blasting Electronic Arts stock ahead of earnings.
  • Plus, options bears bet on a big Weight Watchers drop; Spirit Airlines flies higher after earnings; and Align Technology stock nears new lows.

Midday Market Stats Oct 25

Weight Watchers International, Inc. (NASDAQ:WTW) is seeing unusual options volume today, with more than 7,500  puts on the tape -- six times the expected intraday amount. Most active by far is the January 2019 40-strike put, with almost 7,300 contracts changing hands, and the bulk of which appear to be seeing buy-to-open activity. WTW is up 0.9% to trade at $64.78 today, but has shed 39% since its June 20 high of $105.73.

Spirit Airlines, Inc. (NYSE:SAVE) is up 6% to trade at $51.02, one of the best stocks on the New York Stock Exchange (NYSE) today, after the airliner reported third-quarter earnings that exceeded expectations. In response, Deutsche Bank upped its price target on the equity to $59 from $53. SAVE earlier flew to a record high of $51.78, and is now on track for its best day since July 12. The shares pulled back earlier this month, but the dip was quickly contained by their 80-day moving average.

181025 MMC Spirit

Despite a new partnership with 3D Systems (DDD), Align Technology, Inc. (NASDAQ:ALGN) is down 22.6% to trade at $225.09 today, one of the worst stocks on the Nasdaq so far, after the Invisalign parent gave fourth-quarter revenue guidance below expectations. At least seven brokerages have issued price-target cuts, including one to $277 at Evercore. ALGN is heading toward its worst day since October 25, 2007, and is trading at its lowest point in nearly a year.

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