The Dow is sitting below fair value at midday
The Dow Jones Industrial Average (DJI) is moving slightly lower at midday, after a lukewarm start to the morning. Meanwhile, the S&P 500 Index (SPX) is slightly lower as well, and the Nasdaq Composite (IXIC) is up a little over 50 points, as investors unpack a mixed bag of big-name earnings reports. Elsewhere, stimulus negotiations are seemingly at a standstill, and traders are still digesting the Labor Department's September consumer price index, which was in line with expectations.
Continue reading for more on today's market, including:
- JPMorgan Chase drops despite earnings blowout.
- Footwear stock flaunts double upgrade.
- Plus, gambling stock drops despite cashless technology; one retailer surges following bull note; and Royal Caribbean stock sinks after public offering news.
One stock seeing notable options activity is International Game Technology PLC (NYSE: IGT), down 5.9% at $10.46 at last check, despite the company's launch of Resort Wallet™. So far today, 7,230 puts have crossed the tape, which is more than 176 times the average intraday amount. Most popular option is the November 12-strike call, followed closely by the 10-strike put in the same series, with new positions currently being opened at both. Today's drop has the equity breaking below its formerly supportive 50-day moving average, and down IGT is down roughly 30% year-to-date.
Surging on the New York Stock Exchange (NYSE) is Ethan Allen Interiors Inc. (NYSE:ETH), up 11.6% at $17.44 at last check. Today's impressive bull gap came after the furniture concern earned a price-target hike from Telsey Advisory Group to $19 from $16. Prior to this bull note, the company said it paid off all of its remaining $50 million in debt, and expected to report first-quarter profits of roughly $0.34 per share. The equity has been chopping higher on the charts since June, more than doubling from its 11-year-low near the $8 mark in April, with support from the 60-day moving average. In the last six months, Ethan Allen stock has gained 75.2%.
Meanwhile, dropping lower is Royal Caribbean Cruises Ltd (NYSE: RCL), last seen down 9.7% at $63.06. The negative price action came after the cruise company initiated an underwritten public stock offering of $500 million shares, adding that it intended to grant the underwriters the option to purchase up to $75 million worth of additional shares. While the security has somewhat recovered from its April lows near the $19 mark, RCL sill has a long way to go before it reaches its pre-pandemic high near $135. Longer term, the equity is down 52.7% year-to-date.