The Dow was last seen down 669 points
Yesterday's market rally was woefully short lived, with stocks resuming their selloff in a big way. The Dow Jones Industrial Average (DJI) was last seen down 669 points, and earlier touched its lowest level since December 2020. The Nasdaq Composite (IXIC) and S&P 500 Index (SPX) are also burrowing lower, with the former falling to its lowest level since September 2020, and the latter touching its lowest level since December 2020 as well. Investors are now fearful that the Federal Reserve's aggressive rate hikes could lead to a recession.
On the economic data front, housing starts fell 14% in May, marking a much deeper drop than the 2.6% decline economists expected. Plus, the Philadelphia Fed Business Index turned in its first contraction since May 2020, coming in at a negative reading of 3.3. Meanwhile, weekly jobless claims posted a more modest decline than Wall Street anticipated.
Continue reading for more on today's market, including:
- Behind Kroger's first-quarter beat-and-raise.
- Why one analyst is recommending Dollar General stock.
- Plus, bears circle sinking AAL; LYT soars after IPO; and EBIX plummets on short report.
American Airlines Group Inc (NASDAQ:AAL) is seeing an uptick in bearish options activity today, with 113,000 puts across the tape so far, which is double what is typically seen at this point. The two most popular contracts by far are the January 2023 9- and 12-strike puts, with positions being opened at the former. AAL was last seen down 8.1% at $12.24, and earlier hit an annual low of $12.20. The flight sector is selling off ahead of a virtual meeting between airline chief executives and U.S. Transportation Secretary Pete Buttigieg, which will cover the summer travel season and disruptions in the industry.
One of the best stocks on the Nasdaq today is Lytus Technologies Holdings Pbt Ltd (NASDAQ:LYT). The security was last seen up 38.6% at $23.57 on its second day as a publicly traded company, after soaring as high as 350% on Wednesday afternoon. The telehealth name held a downsized initial public offering (IPO) yesterday, raising $12.4 million. Lytus priced its stock at $4.75 per share, and the equity opened at $20.
One of the worst stocks on the Nasdaq is Ebix Inc (NASDAQ:EBIX). The equity was last seen down 38.3% at $14.43, after Hindenburg Research put out a new short report, pointing out the tech firm's "massive near-term debt load," and expressing concern over rising interest rates. The shares are trading at their lowest level since April 2020, and have shed 54% in the past 12 months.