All three major benchmarks are staring at weekly losses
The Dow Jones Industrial Average (DJI) is on pace for its worst week since January, and set for its second weekly loss. The index is down a whopping 475 points at midday, as traders sell off reopening plays after St. Louis Federal Reserve President Jim Bullard hinted an interest rate hike could be in the cards as soon as next year. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are both pacing for daily and weekly losses as well.
Elsewhere, investors are keeping an eye on "quadruple witching" Friday, with options on indexes and equities set to expire at the close, which could lead to heightened volatility for stocks. Commodity prices, meanwhile, are rising slightly, following sharp pullbacks thanks to China's efforts to regulate them.
Continue reading for more on today's market, including:
- Delta Air Lines stock inches higher on double upgrade.
- Options bears circle Citigroup stock as it eyes 12th consecutive loss.
- Plus, SWBI gets post-earnings bull notes; Cai International announces billion-dollar buyout; ORPH falls from speculative surge.
One stock seeing an unusual amount of options activity today is Smith & Wesson Brands Inc (NASDAQ:SWBI), up 10.4% at $21.99 at last check. The company earned two price-target hikes this morning, coming from Cowen and Company and Wedbush to $30.50 and $22 respectively, following yesterday's fiscal fourth-quarter earnings beat. So far, 12,000 calls and 1,418 puts have already exchanged hands, or 12 times what is typically seen at this point. Most popular is the June 22.50 call, followed by the 20 call in the same series, both of which expire at the end of today's session. The equity has faced some volatility on the charts in the past year, though it notched a three-year high of $23.57 in early January. Shares have had the support of the 40-day moving average since April, too, and year-over-year SWBI is up 55.7%.
Near the top of the New York Stock Exchange (NYSE) today is CAI International Inc (NYSE:CAI), last seen up 46% at $55.72, after earlier nabbing an all-time high of $55.78. The logistics concern earlier announced it will acquire Mitsubishi HC Capital for $1.1 billion, as the firm expands overseas operations. The security is now pacing for its highest single-day percentage jump ever, and has surged back above its 40-day moving average, which had been keeping a lid on shares since late April. Longer term, CAI sports a massive 228.3% year-over-year lead.
Meanwhile, at the bottom of the Nasdaq is Orphazyme A S (NASDAQ:ORPH). Shares are down 41.8% to trade at $8.48 this afternoon, after the drug maker's genetic disorder drug candidate failed to get approval from the U.S. Federal Drug Administration (FDA). In turn, the company slashed its 2021 outlook, noting it needed to significantly cut costs. Orphazyme was tagged onto the growing list of meme stocks earlier in the month, surging to a June 10 record high of $77.77. And though the stock is still the most mentioned on Stocktwits today, this massive bear gap marks the stock's second-biggest percentage drop since going public last December. Over the last three months, ORPH has shed 32%.