Dow Pares Morning Losses On Rate Cut Optimism

Services sector data fell to its lowest level in three years

Managing Editor
Oct 3, 2019 at 11:54 AM
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It's been a roller-coaster session on Wall Street, with the Dow Jones Industrial Average (DJI) treading water at midday. The blue-chip index was down over 300 points at its session lows, after the Institute for Supply Management (ISM) non-manufacturing index came in at a lower-than-expected 52.6 for September -- its lowest reading since August 2016. But the Dow has erased most of its losses, while the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) have even turned higher, as this latest round of dismal economic data boosts the probability of another rate cut by the Federal Reserve later this month.

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

  • A deliveries miss and then a downgrade weighs on Tesla stock.
  • Deutsche Bank just set a lofty target for this FAANG stock.
  • Plus, put traders pile on GoPro after guidance; Netflix eyes an Italian tax evasion probe; and Gap stock drifts near multi-year lows.

Midday Market Stats Oct 3

One name seeing unusual options volume today is GoPro Inc (NASDAQ:GPRO), with 25,000 puts crossing the tape so far -- 24 times the average intraday amount, and volume pacing for the 100th percentile of its annual range. Most of this attention is on the weekly 10/4 4-strike put, where new positions are being opened. The shares were last seen down 21.7% to trade at $4.02, after the company slashed its guidance, so put buyers are banking on more losses for the camera concern by the end of the day tomorrow, when the options expire.

Netflix Inc (NASDAQ:NFLX) stock is trending lower today, amid reports that an Italian prosecutor has opened a probe targeting the company for tax evasion. Netflix stock has shed 32% in the last three months, and has surrendered its year-to-date breakeven point today.

Gap Inc (NYSE:GPS) is another name trending lower today, down 2.6% at $16.02, although a specific catalyst is unclear. GPS is now a chip-shot from its Sept. 3 eight-year low of $15.11. The subsequent rally from there was swiftly rejected by the shares' 100-day moving average.

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