Dow Adds Over 500 Points as Lawmakers Reach Debt Limit Deal

Lawmakers came to a short-term agreement concerning the debt limit

Assistant Editor
Oct 7, 2021 at 11:54 AM
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Progress on the debt limit and upbeat jobless claims data has stocks pacing for a higher close at midday. According to Senate Majority Leader Chuck Schumer, lawmakers in D.C. have agreed to a short term-debt limit increase, helping the U.S. avoid an unprecedented debt default for the time being. In response, the Dow Jones Industrial Average (DJI) is up more than 500 points this afternoon, further boosted by weekly jobless claims falling sharply to 326,000 -- well below the Dow Jones estimate. Meanwhile, the Nasdaq Composite (IXIC) also boasts a triple-digit lead, while the S&P 500 Index (SPX) sits firmly in the black. 

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

  • A revenue miss sent this pot stock up in smoke.
  • Affirm stock boosted by Target partnership.
  • Plus, 1 denim stock flying up the charts; Lamb Weston's dismal quarterly report; and FFIE's options pits explode.

Midday Market Stats October 7

Standing near the top of the New York Stock Exchange (NYSE) today is Levi Strauss & Co. (NYSE:LEVI), which was last seen up 8.1% at $26.29 after a stellar fiscal third-quarter earnings report. The denim specialist reported top- and bottom-line beats for the quarter, with sales boosted by back-to-school demand. Today's positive price action adds to Levi Strauss stock's 68.6% year-over-year lead, and puts it back above short-term pressure at the 200-day moving average.

LEVI chart October 7

Near the bottom of the NYSE today is Lamb Weston Holdings Inc (NYSE:LW), which was last seen down 6.5% at $58.32, after the company reported lackluster fiscal first-quarter results. Its earnings of 20 cents per share were well below analysts' forecasts, as was its revenue of $984.2 million, which earned the equity a bear note from Jefferies. Today's dip resulted in Lamb Weston stock's lowest open since May 2020, and puts the security on track to log its third-straight daily drop. Year-to-date, LW is down 26.6%.

Faraday Future Intelligent Electric Inc (NASDAQ:FFIE) is seeing an uptick in options activity, with 15,000 calls and 7,140 puts crossing the tape so far today. By far the most popular contract is the October 8.50 call, where new positions are being opened. FFIE is up 6.1% at $8.12 at last check, though it remains down nearly 20% in 2021. Even further, FFIE hit an all-time low of $7.40 during yesterday's session. 

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