All three major benchmarks are deep in the red midday
Stocks are extending their dismal start to 2025. Better-than-expected jobs data is the culprit today, sending the Dow Jones Industrial Average (DJI) 621 points into the red and heading for a fifth weekly loss in the last six. The S&P 500 Index (SPX), Nasdaq Composite Index (IXIC), and small cap Russell 2000 (RUT) are also seeing substantial losses for the day and week, while the Cboe Volatility Index (VIX) looks to secure its fourth weekly win in five.
The 10-year Treasury note earlier spiked to its highest level since late 2023 and remains above 4.7%. After the robust jobs data, the CME FedWatch tool shows the likelihood of a central bank rate cut at the March meeting down to around 25%.
Continue reading for more on today's market, including:
- Consider adding these 2 stocks to your 2025 portfolio.
- Analyst sees headwinds for air taxi stocks.
- Plus, Delta earnings draw bulls; CEG makes moves, and insurance company struggles.
Options traders are reacting well to Delta Air Lines' Inc (NYSE:DAL) first-quarter outlook, which topped analysts expectations. In addition, the airline giant beat fourth-quarter earnings and revenue expectations, with CEO Ed Bastian noting that 2025 will be "our best financial year in our history." At last check, over 99,000 calls and 39,000 puts have changed hands, volume that's six times the average intraday amount. The weekly 1/10 70-strike call is the most popular, and new positions are being sold to open. DAL is up 9.7% to trade at $67.36, and now boasts a 58.4% year-over-year lead.
Constellation Energy Corp (NASDAQ:CEG) is breaking out on the Nasdaq today, last seen up 22.7% to trade at $299.19, on the heels of one of the biggest deals in the history of the U.S. power industry. The company said it would acquire Calpine for $16.4 billion in a cash-and-stock deal, with CEO Joe Dominguez saying that demand for the company's products "is expected to grow by levels we haven't seen in a lifetime. Shares earlier hit an all-time high of $305, and stand 162% higher over the last 12 months.
Shares of Los Angeles-based insurance company Mercury General Corp (NYSE:MCY) are 17.6% lower at $50.01, underperforming the broader market as the wildfires continue to ravage the city. On Friday, the firm said its total reinstatement premiums so far are $101 million, and it expects them to exceed $150 million. The stock has shed 31.6% so far over the last month.