Dow on Track for Worst Week, Month Since March

Investors are digesting a slew of mixed earnings reports

Digital Content Manager
Oct 30, 2020 at 12:06 PM
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The Dow Jones Industrial Average (DJI) is down nearly 390 points at midday, extending this morning's losses after a week of coronavirus case records and no progress on stimulus. The S&P 500 Index (SPX) and the Nasdaq Composite (IXIC) are carrying significant losses as well, after better-than-expected earnings from Apple (AAPL) and Amazon.com (AMZN) were overshadowed by a sales drop and a wide fourth-quarter guidance, respectively. As it stands, all three are eyeing both weekly and monthly losses, with the Dow on track for its worst of both since March. 

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

  • Honeywell stock faces off with key trendline.
  • Video game stock slips despite earnings beat.
  • Plus, bulls blast UA on online demand surge; flooring manufacturer rises on profit outlook; Twitter stock drops despite blowout earnings.

Midday Market Stats 1030

One stock seeing notable options activity today is Under Armour Inc (NYSE:UA), up 1.8% at $12.26. The jump came after the retail company beat analysts' third-quarter earnings and revenue estimates, thanks to online demand from shoppers looking for athletic apparel. As a result, 10,000 calls have crossed the tape so far today, which is  eight times the average intraday amount. Most popular is the monthly November 13.50 call, followed by the weekly 10/30 13.50-strike call. In the last six months, UA is up 40.3%.

Surging on the New York Stock Exchange (NYSE) is Mohawk Industries, Inc.(NYSE:MHK), up 11.6% at $104.03. The surge came after the flooring manufacturer reported third-quarter earnings of $3.26 per share -- notably higher than Wall Street's estimates of $2.14 -- and posted a higher profit outlook. On the charts, the security has had a volatile year since dropping to a March 23, eight-year-low of $56.99. After MHK's June rally fell short, however, shares have been making their way higher, with support from the 100-day moving average. In the last six months, the stock has gained 28.3%. 

Meanwhile, dropping lower on the NYSE is Twitter Inc. (NYSE:TWTR), last seen down 19.1%, at $42.42. The massive bear gap came after the social media giant added fewer users than anticipated, despite reporting better-than-expected third-quarter earnings due to ad sales. Just yesterday, the equity reached a five-year high of $52.93, which is more than double this year's March low near the $20 mark. But now, shares are slipping below the once-supportive 40-day moving average. Year-over-year, TWTR remains up 41%.

TWTR 40 Day

 

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