Dow Eyes 4-Straight Despite Tech Tumble

The Nasdaq is lower with tech this afternoon

The Dow Jones Industrial Average (DJI) is more than 300 points higher this afternoon, heading for its fourth-straight daily win, even as Wall Street digests a lackluster round of earnings from Big Tech. The S&P 500 Index (SPX) is also brushing off the reports, though the tech-heavy Nasdaq Composite (IXIC) is succumbing to sector pressure and sports a mild midday loss.

Elsewhere, the latest Investors Intelligence (II) survey was released, showing bullishness is on the rise. Specifically, financial newsletter editors that took the II survey showed 36.9% were bullish, up from a six-year low of 25% two weeks prior. Wall Street’s “fear gauge,” the Cboe Volatility Index (VIX), continues to cool off as well, and was last seen 3.1% lower.

Continue reading for more on today’s market, including:

  • Microsoft’s sales warning weighs on shares.
  • Alphabet stock hit with post-earnings bear note.
  • Plus, options traders blast DraftKings stock; and 2 more earnings reports to unpack.

Options traders are taking an interest in gambling concern DraftKings Inc (NASDAQ:DKNG), with 51,000 calls and 18,000 puts exchanged so far today — triple the amount typical at this point in the session. New positions are being opened at the most popular contract, the weekly 10/28 15-strike call. Last seen 5.3% higher to trade at $14.85, this options-related interest comes after DKNG was the target of two price-target cuts in the last two days. Specifically, Truist Securities and BofA Global Research slashed their price objectives to $15 and $17, respectively, just over a week before DraftKings is scheduled to enter the earnings confessional. On the charts, the security is 69.1% lower in the last 12 months, but is set to thwart pressure from its 140-day moving average thanks to today’s positive price action.

New Oriental Education & Tech Grp (NYSE:EDU) holds the top spot on the New York Stock Exchange (NYSE) this afternoon, after reporting fiscal first-quarter earnings of 48 cents per share on revenue of $744.82 million — both of which demolished analysts’ expectations. Now, EDU stands 17.8% higher year-to-date.

At the very bottom of the NYSE this afternoon sits Stride Inc (NYSE:LRN). Stride stock was last seen 26% lower, trading at $34.40, after reporting wider-than-anticipated losses for its fiscal first-quarter. Now trading fractionally higher above its year-over-year breakeven, LRN is also clinging to a 4.8% year-to-date lead.

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