Dow Drops Triple Digits; S&P 500, Nasdaq Extend Highs

Posted By: ndeeney

The Dow is down 102 points midday

The Dow Jones Industrial Average (DJI) is down triple digits this afternoon, taking a breather after Friday’s huge win. The S&P 500 Index (SPX) and Nasdaq Composite Index (IXIC) are on the rise, however, building on last session’s multi-month highs, as the tech sector gets a boost from Apple (AAPL) stock’s record peak. Meanwhile, the Institute for Supply Management (ISM) services index reading came in at 50.3 for May, barely above the expansion threshold of 50 and below Wall Street’s expectations.

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

More on Apple stock’s fresh record highs.
Palo Alto Networks replacing Dish Network on the SPX.
Plus, options traders eye ASO before earnings; CIR soars on buyout; and CSTL crumbles on forecast.

Options traders are targeting Academy Sports and Outdoors Inc (NASDAQ:ASO) ahead of the company’s first-quarter earnings results, due out before the open tomorrow. So far, 6,943 calls and 5,258 puts have crossed the tape, which is six times the intraday average volume. The July 60 call is the most active contract, with new positions opening there. J.P. Morgan Securities cut its price target to $61 from $70 ahead of the event, and though ASO recently bounced off the 320-day moving average it is struggling to rally, last seen down 4.4% at $49.13.

Circor International, Inc. (NYSE:CIR) is up 51% at $47.83 at last check, and trading at its highest level in over four years, after news that KKR (KKR) is acquiring the company for $1.6 billion, though the deal is now being investigated for its fairness to shareholders. Stifel downgraded CIR to “hold” from buy,” but raised its price target to $49 from $40 to reflect the sale price. Year-to-date, the equity is up 98.5%.

Castle Biosciences Inc (NASDAQ:CSTL), meanwhile, is at the bottom of the Nasdaq, down 47.8% at $11.87 at last check. The shares earlier dropped to a record low of $9.26, after the company reaffirmed its full-year revenue guidance. SVB Securities also slashed its price target to $35 from $50, while Stephens cut its objective to $37 from $41. Year-to-date, CSTL is down 51.7%.

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