Dow Retreats from Record Highs as Earnings Optimism Wanes

The SPX is looking for its 58th record high close in 2021

Assistant Editor
Oct 27, 2021 at 11:55 AM
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The positive sentiment from a strong earnings season couldn't last forever, and that is looking evident as the Dow Jones Industrial Average (DJI) has shed around 108 points by midday, falling from record levels. The S&P 500 Index (SPX), meanwhile, is hovering around breakeven, and a rise today could mark the broader market index's 58th record close of the year. Lastly, the Nasdaq Composite (IXIC) sports solid gains this afternoon, thanks to more upbeat Big Tech earnings.

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

  • Microsoft stock hits fresh highs amid a myriad of bull notes.
  • A beat-and-raise is boosting this fast food giant.
  • Plus, calls popular on sinking Alcoa stock; TMHC soars on top- and bottom-line beat; and Flagstar stock brushes off an upbeat earnings report.

Midday Market Stats October 27

Alcoa Corp (NYSE:AA) is seeing a surge in bullish trading today, with 28,000 calls exchanged so far -- three times the intraday average and over five times the amount of puts traded. The most popular is the November 53.50 call, followed by the 50 call in the same monthly series. Alcoa stock has pulled back from its Oct. 18, three-year high of $57.57 in recent sessions, and was last seen down 5.5% to trade at $46.82. However, the equity still boasts a fantastic 104.8% year-to-date lead, with the 60-day moving average in place as a safety net for any further losses.

AA Chart October 27

One of the top performers on the New York Stock Exchange (NYSE) today is Taylor Morrison Home Corp (NYSE:TMHC). The company this morning announced third-quarter earnings and revenue that topped Wall Street's forecasts, and appointed Lou Steffens, the company's current president of mergers and acquisitions, as its next chief financial officer. The stock is up 13% at $31.17, now trading at its highest level since May. Now trading back above the 180-day moving average after facing pressure from the trendline for sometime, TMHC boasts a 17% year-to-date lead. 

Meanwhile, the worst stock on the NYSE is Flagstar Bancorp Inc (NYSE:FBC), which was last seen down 10.5% at $49.23. The company beat earnings and revenue expectations this morning, so its unclear exactly what's driving the negative price action. Flagstar stock remains up 19.5% year-to-date, though today's drop has it set to lock in its lowest close since early August, and sitting just atop the 120-day moving average.

Trader: Sell These 8 Stocks in 2021

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