Dow, Nasdaq Sharply Lower On Mounting Economic Concerns
Stocks are lower this afternoon, as Wall Street digests a fresh wave of disappointing economic data. Both the Dow Jones Industrial Average (DJI) and tech-heavy Nasdaq Composite (IXIC) are down triple digits, as the S&P 500 Index (SPX) also sits firmly in red territory.
The selloff follows this morning’s weaker-than-expected GDP reading and private sector payrolls, which reignited recession fears and cast doubt on April’s stock market rebound. Investors are also questioning the longer-term economic impact of President Trump’s aggressive trade policies, which many fear will further pressure the economy.
Humana Inc (NYSE: HUM) is seeing elevated options activity this afternoon, with 7,228 calls and 4,176 puts traded so far -- double the average intraday volume. New positions are being opened at the most active contract, the weekly 5/2 325-strike call. The health insurance stock is down 0.6% at $257.83 at last check, despite the company reporting stronger-than-expected first-quarter earnings of $11.58 per share, topping estimates of $10.07 per share. Over the last nine months, HUM shed 29.3%.
Trane Technologies (NYSE: TT) is one of the best-performing stocks on the New York Stock Exchange (NYSE) this afternoon, last seen 7.4% higher at $379.84. The company reported double-digit revenue growth for the first quarter and a profit beat, reaffirmed its full-year guidance, and noted it is tracking toward the higher end of its forecast ranges. The equity is now slightly above its year-to-date breakeven level and boasts a 19.6% gain over the last 12 months.
Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) is one of the worst-performing stocks on the NYSE today, last seen down 8.4% at $15.92. The cruise operator missed first-quarter estimates, reporting adjusted earnings of 7 cents per share on $2.13 billion in revenue, versus expectations of 9 cents on $2.15 billion. While the company kept its full-year earnings guidance of $2.05 per share, CEO Harry Sommer noted a cautious view of the “evolving macroeconomic environment.” NCLH is down 40% year to date and just gapped back below its 20-day moving average.
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