Stocks Pivot Lower After Consumer Confidence Data Disappoints

The big Dow shakeup is also weighing on Wall Street

Assistant Editor
Aug 25, 2020 at 12:32 PM
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The Dow Jones Industrial Average (DJI) is down around 140 points midday, giving back early-morning gains amid a major shake-up in blue-chip stocks. Meanwhile, the S&P 500 Index (SPX) is hovering at breakeven despite hitting a fresh record high out of the gate, while the Nasdaq Composite (IXIC) is holding on to a modest gain and gunning for its sixth-straight win.

Some of this pivot is due to data on consumer confidence for August, down to 84.8 from July's 91.7 -- a new pandemic low after the summer spike in coronavirus cases. In other U.S. economic data, U.S. home prices rose in June, and sales of new single-family homes rose 14% between June and July.

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

  • J M Smucker stock eyes its best day in months after positive quarterly report
  • This airliner couldn't avoid pilot furloughs any longer. 
  • Plus, Best Buy stock sees options surge amid sales warning; SWBI rises on reinstated coverage; and PLCE plummets on quarterly losses. 

mmc August 25

One stock seeing notable activity in its options pits is Best Buy Co Inc (NYSE:BBY). So far, 41,000 calls and 22,000 puts have crossed the tape -- options volume that is running at 10 times the average intraday amount. Most popular is the weekly 8/28 115-strike call, where new positions are being opened. Buyers of these calls are betting on more upside for BBY by the end of this week, when the contracts expire. The stock is down 5.7% at $110.71 at last check, after the electronics retailer reported a sales growth warning attached to its second-quarter earnings report.

One stock scaling the Nasdaq today is Smith & Wesson Brands Inc (NASDAQ:SWBI), up 12.6% at $18.08 at last check. Cowen and Company reinstated its "outperform" rating -- with a price target of $24 -- citing that the recently completed split with American Outdoor makes SWBI a firearms "pure play" with great potential. Year-to-date, the stock is up 149.2%. 

Conversely, dropping lower on the Nasdaq is Children's Place Inc (NASDAQ:PLCE), last seen down 15.3% at $19.74. The apparel company reported wider-than-expected second-quarter losses that are weighing on the equity. PLCE is now down 68.4% year-to-date. 

PLCE August 25

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