Dow Sinks 500 Points as Tech Losses Mount
Investors are also considering today's manufacturing data
U.S stocks are extending their losses at midday, with the Dow Jones Industrial Average (DJI) down nearly 500 points at last check. A Trump-induced Amazon (AMZN) sell-off is rocking the tech sector once again, and an extended slide to fresh lows from Tesla (TSLA) is grabbing headlines, as well. Lingering fears of a trade war are only adding to the bearish backdrop, while investors also react to today's economic data. Specifically, Markit's purchasing managers manufacturing index (PMI) for March jumped to a roughly three-year high, and the Institute for Supply Management's (ISM) manufacturing survey for the same period fell just shy of expectations but remained near 14-year highs. Plus, construction spending in February rose slightly less than expected.
Continue reading for more on today's market, including:
The downgraded tech stock that just hit record lows. Analyst: Buy the dip on this restaurant stock. Plus, call buyers flock to McDonald's strength; M&A buzz boosts health insurers; and why Wall Street is booing Live Nation.
After dropping more than 9% in the first quarter, McDonald's Corporation (NYSE:MCD) is off to a strong start in the second quarter, up 1.6% today at $158.88, despite the broad-market headwinds. Options traders are moving in, too, with calls trading at almost two times the expected pace. The most popular contract is the weekly 4/6 162.50-strike call, which seems to be seeing buy-to-open activity. These bulls are betting on MCD stock rallying above $162.50 by week's end, when the contracts expire.
Humana Inc (NYSE:HUM) is also dodging today's headwinds, outperforming on the New York Stock Exchange (NYSE) with a 5.3% advance to trade at $283.02. The moves comes after reports of a potential buyout from Walmart (WMT), buzz that's giving many health insurance peers a list, as well. At the same time, HUM shares are already well off their intraday high of $290.53.
Live Nation Entertainment, Inc. (NYSE:LYV) is a big loser on the NYSE, following a New York Times report that the Justice Department is looking into whether the Ticketmaster parent violated an antitrust agreement. LYV shares are down 8% at $38.78, pacing for their lowest close since August, and their first below the 200-day moving average in over a year.
