Q: What's with the steep dive of DOL of almost $8 in share price in the last five days and high volumes?
5i Research Answer:
Broad markets were up sharply this morning following the positive US-China trade news, and this caused a large 'risk-on' rally. Many tech, discretionary, and industrials names were up substantially, and investors began to take down their 'risk-off' hedges from the consumer staples, healthcare, and utilities sectors. Industries and sectors like insurance, dollar stores, utilities, can perform well in uncertain environments, but as things become less uncertain, investors take on risk in the highly cyclical parts of the market.
DOL can be considered a 'risk-off' name, hence the sell off.