The Dow has dropped triple digits midday
The Dow Jones Industrial Average (DJI) is down triple digits at midday, following a morning in which stocks struggled for direction. Meanwhile, the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also lower, as investors continue to digest a slew of bank earnings, with another batch expected to roll in after the close. Elsewhere, officials remain mum regarding extra stimulus, even as another vaccine candidate gets put on hold and COVID-19 cases continue to spike across the globe.
Continue reading for more on today's market, including:
- Macy's names new CFO ahead of holiday shopping season.
- Telehealth stock shakes off analyst warning.
- Plus, AMC plummets on capital raise news; Tesla competitor surges thanks to JP Morgan bull note; and diagnostics stock drops after posting revenue decline.
One stock seeing notable options activity today is AMC Entertainment Holdings Inc (NYSE:AMC), down 18.2% at $2.90 at last check. The alarming drop came after the theatre chain flagged a possible capital raise, which would be in the form of equity, as it continues to struggle with efforts to curb spread of COVID-19 as well as delayed major film releases. So far, 47,000 puts have crossed the tape, which is 18 times the average intraday amount. Most popular option is the monthly October 3 put, followed closely by the weekly 10/23 2.50-strike put, with new positions being opened at both. Year-over-year, AMC is down 68.2%.
Surging on the New York Stock Exchange (NYSE) is Nio Inc (NYSE:NIO),up 16% at $25.09 at last check, after earlier hitting an all-time-high of $26.39. Today's bull gap came after JPMorgan Securities upgraded the auto manufacturer to "overweight" from "neutral," and raised its price target to $40 from $14. The analyst in question said NIO will be a long-term winner in this market, with China's new energy vehicle penetration set to quadruple by 2025. Prior to this bull note, the security had been chopping higher on the charts, nabbing records on a monthly basis since June, with support from the 40-day moving average. Year-over-year, the security sports a jaw-dropping 1,508.9% lead.
Meanwhile, dropping lower is Enzo Biochem, Inc. (NYSE: ENZ), last seen down 16.5% at $2.18. The negative price action came after the diagnostics company reported fiscal fourth-quarter losses, as well as a 6% decline in revenue in 2020. Before today's results sent shares plummeting, the equity had been going through an extremely volatile period over the past several months. At least three rallies fell flat earlier this year, including two post-pandemic surges in April and July. Longer term, the security is down 35.9% year-over-year.