Dow Begins Q2 Deep in Red
The S&P 500 and Nasdaq are sharply lower as well
The Dow Jones Industrial Average (DJI) is down over 600 points at midday,a bleak start for what could be another roller-coaster month and quarteramid the COVID-19 pandemic. President Donald Trump announced Tuesday that the next two weeks could be "very, very painful," as the White House projects between 100,000 and 240,000 coronavirus-related deaths in the U.S. Meanwhile, both the Nasdaq Composite (IXIC) and S&P 500 Index (SPX) are both beginning the new quarter with significant losses as well.
Continue reading for more on today's market, including:
CAT stock fell after employees were denied annual salary increases. Macy's stock was booted from the S&P 500. Plus, U.S. Steel call buyers emerge; a bull note for Dollar General stock; and a luxury retailer under pressure.
One stock seeing an options volume surge today is United States Steel Corporation (NYSE:X), last seen 6% higher to trade at $6.62 at last check, on track for its highest close in nearly a month. So far the steel stock has seen 81,000 calls cross the tape -- seven times the usual daily volume. Most popular is the weekly 4/3 7-strike call,where new positions are being opened.Buyers of those calls expect X to reclaim the $7 mark by the end of this week, when the options expire.
One stock making a splash on the S&P 500 this morning is Dollar General Co (NYSE: DG), up 3.2% to trade at $155.19 at last check. While there could be many contributing factors to DG's rise on the charts, it could be chalked up to its recent price-target increase to $190 from $184 by Citigroup. On top of this, DG is on track to topple its 100-day moving average on a closing basis for the first time in three weeks.
Meanwhile, toward the bottom of the SPX is Capri Holdings Ltd (NYSE:CPRI), down 15.7% to trade at $9.11 at last check. Weighing on the security today is a steep price-target cut from BMO all the way down to $18 from $41. The luxury retailer is now down 76.3% in 2020, and heads into a historically bearish seasonal trend.