Stocks are stumbling to start October, as geopolitical tensions rise in the Middle East. White House officials received word that Iran was preparing to launch ballistic missiles against Israel, just days removed from Israel's advancement into Lebanon. Oil prices are spiking in response, with November-dated crude futures last seen 3% higher and trading back above $70 per barrel. The Dow Jones Industrial Average (DJIA) was off by 115 points, while the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are firmly in the red as well. 

Alibaba Group Holding (NYSE: BABA) is getting attention from options bears today. At last check, over 86,000 puts have changed hands, volume that's double the average intraday amount. The weekly 10/11 109-strike put is the most popular, with new positions being bought to open. BABA is up 1.3% to trade at $107.53, and just yesterday hit an 18-month high of $112.22 as China-based stocks break out. Year-to-date, Alibaba stock is up 40%.  

Northrop Grumman Corp (NYSE: NOC) is one of the top stocks on the SPX today, last seen up 2.8% to trade at $543.09, as the escalation in the Middle East lifts the defense sector. NOC earlier hit a record high of $549.48, and is now up 16% in 2024, with support at its ascending 20-day moving average. 

HP Inc (NYSE: HPQ) is near the bottom of the SPX, last seen down 4% to trade at $34.43. The tech hardware stock was downgraded by Citigroup to "neutral" from "buy," with the analyst in coverage sees macro weakness limiting recovery in the personal computer market. Year-to-date, HPQ is up 14.6%. 

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