The Dow was up 300 points out of the gate, but gave back those gains within an hour
Stocks are volatile this morning, as the initial pop from this morning's outstanding jobs report wears off. Even though investors are cheering the robust labor market and falling unemployment rate, there are still geopolitical tensions, red-hot crude prices, and rising bond yields to grapple with.
The Dow Jones Industrial Average (DJI) is just above breakeven at last check, but managed to push 300 points higher out of the gate. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are well off their session highs as well, but remain cautiously higher at midday. While all three major indexes are heading for weekly losses, the Cboe Volatility Index (VIX) has retreated back below 20.
Continue reading for more on today's market, including:
- Spirit bankruptcy woes lift JetBlue stock.
- What's next for CVS Health stock?
- Plus, puts pop on shipping stock; and 2 sectors moving in opposite directions.
Options bears are piling on ZIM Integrated Shipping Services Ltd (NYSE:ZIM) today. The international shipping stock is tumbling in the wake of the U.S. dockworkers and the United States Maritime Alliance agreeing to a tentative deal to end their east- and gulf-coast strikes. At last check, over 41,000 puts have changed hands, volume that's nine times the average intraday amount and more than double the number of calls traded. The January 2025 15- and 12.50-strike puts are the most popular, while new positions are being bought to open at the October 17 put. ZIM is down 14.6% to trade at $18.51, but is still 88% higher year-to-date.
Norwegian Cruise Line Holdings Inc (NYSE:NCLH) is one of the top stocks on the SPX today, last seen up 5.1% to trade at $20.44 thanks to a price-target hike from Stifel to $29 from $27. Sector peers Carnival (CCL) and Royal Caribbean (RCL) are both up more than 1% as well. NCLH is now back above its year-to-date breakeven level, and 23.6% higher in the last months.
D. R. Horton Inc (NYSE:DHI) stock is near the bottom of the SPX, last seen down 2.6% to trade at $81.46. Homebuilding stocks are sharply lower across the board today, possibly due to profit-taking on a red-hot sector. DHI is still up 30.4% in 2024, and is testing support at its 50-day moving average today.
