Dismal Facebook Earnings Drag Nasdaq Into the Red

FB stock is on track for its worst day ever

Managing Editor
Jul 26, 2018 at 11:54 AM
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The Dow Jones Industrial Average (DJI) is up triple digits today, and heading toward its highest close in five months, thanks to optimism about trade talks between the U.S. and European Union (EU). However, the big story of the day is Facebook (FB), on track for its worst day ever following lower-than-expected revenue and a warning about profit margins. The dismal results have sent the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) lower, dragging down fellow FAANG stocks like Amazon (AMZN) -- set to release its own earnings report tonight. Nevertheless, Wall Street's "fear gauge," the Cboe Volatility Index (VIX), is lower and on track for its fifth straight loss, which would mark its longest losing streak since May.

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

  • Muddy Waters: This company is "misleading investors."
  • Citrix Systems stock burns bears once again.
  • Plus, options bears target a Hertz stock pullback; AMD toasts a huge earnings win; and Biogen stock eyes its worst day in two years.

Midday Market Stats July 26

One name seeing notable options trading today is Hertz Global Holdings Inc (NYSE:HTZ), where nearly 3,000 puts have traded -- double what's typically seen at this point. Among the most active today is the August 12 put, where it appears most of the activity is of the buy-to-open variety. Shares of the rental name are up 1.9% to trade at $14.58 today, and it looks like the traders are targeting a pullback after Hertz reports earnings in early August.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best stocks on the S&P 500 today, up 12% to trade at $17.97, and earlier touching an 1--year high of $17.98, after the semiconductor concern reported second-quarter earnings and revenue beyond analyst expectations. A flurry of analysts chimed in with price-target hikes, including to $21 from $19 at Craig-Hallum. AMD has now added roughly 75% in 2018, and is on track for its best day since April 26.

Biogen Inc (NASDAQ:BIIB) is near the bottom of the Nasdaq today, down 8.9% to trade at $347.83, on track for its worst day since June 2016. Although the stock gapped higher on Tuesday on the back of a beat-and-raise, the biotech name is down today after its Alzheimer's drug data did not impress investors. BIIB raced to a three-year high of $388.67 yesterday, but today's pullback has the shares set to close below their 10-day moving average, a trendline that has alternated between support and resistance all year.

MMC Daily Chart BIIB

 

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