Stocks Buried by China Fears

The Dow is pacing for its lowest close in a month

May 7, 2019 at 12:00 PM
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The U.S. stock market is getting destroyed as investors worry about a growing trade war with China. These fears sent the Dow Jones Industrial Average (DJI) down more than 425 points at its session low, with all 30 Dow components trading in negative territory at last check. It's a similar setup for the S&P 500 Index (SPX) and Nasdaq Composite (IXIC), and the risk-off approach has resulted in another huge Cboe Volatility Index (VIX) spike. The "fear gauge" is approaching the 20 level, which it hasn't topped since January.

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

  • Founder and CEO Bernie Schaeffer looks at a gold ETF battling seasonal headwinds.
  • The drug data sending CBD stock GWPH to all-time highs.
  • Plus, a 7-figure put trade on a drugmaker; Crocs crushes estimates; and Mylan miss results in new low.

midday market stats may 7

One name seeing unusual options trading today is Mallinckrodt PLC (NYSE:MNK), after a bearish multi-million-dollar trade crossed this morning. Specifically, data suggests one speculator bought to open 7,000 January 2021 20-strike puts for $7.55 each, putting her or his cash outlay at about $5.3 million (contracts purchased * 100 shares per contract * premium paid). This would either be a shareholder hedging against future losses or someone looking profit on a longer-term slide in MNK stock. The generic drugmaker was last seen trading at $16.06.

One stock outperforming on the Nasdaq today is specialty footwear concern Crocs, Inc. (NASDAQ:CROX). The company reported better-than-expected first-quarter earnings and revenue thanks to strong e-commerce sales, sending CROX shares up 3.9% at $29.43. Crocs stock has nearly doubled in value over the past 12 months.

One of the worst stocks today is EpiPen maker Mylan NV (NASDAQ:MYL). The company continues to be plagued by issues at its Morgantown, West Virginia, plant, resulting in first-quarter revenue that fell well below analyst estimates. MYL stock has nosedived 17.6% to trade at $23.20, and earlier hit a six-year low of $22.50.

mylan stock chart

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