Dow Turns Lower Ahead of Powell Speech as Recession Fears Resurface

Trump tweeted that the Fed could easily boost the economy's recent momentum

Deputy Editor
Aug 22, 2019 at 11:57 AM
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The Dow Jones Industrial Average (DJI) has turned lower, reversing early gains, as recession anxieties begin to creep back in. Speaking from the central bank's annual symposium in Jackson Hole, Wyoming, Philadelphia Fed President Patrick Harker and Kansas City Fed President Esther George said they don't see a case for additional rate cuts right now. The yield curve subsequently inverted once again, and recession fears were exacerbated by data showing U.S. manufacturing activity contracted for the first time since 2009.

Meanwhile, ahead of Fed Chair Jerome Powell's upcoming speech, President Donald Trump tweeted, "The Economy is doing really well. The Federal Reserve can easily make it Record Setting!" Against this backdrop, the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are trading lower, too. 

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

  • Mizuho says nab this tech stock ahead of earnings. 
  • This e-tail stock is at an attractive entry point, says one analyst. 
  • Plus, Corning's new exec has options bulls flocking; Cemtrex rallies again; and a late-stage study flop knocks Retrophin stock. 

Midday Market Stats Aug 22

Corning Incorporated (NYSE:GLW) is seeing an influx of bullish activity, after the kitchenware name announced John Tobin as its Vice President and General Manager of Corning Life Sciences. So far, 35,000 calls have been traded -- 20 times what's typically seen at this point -- compared to fewer than 2,000 GLW puts. The October 28 call is by far the most popular, with contracts being bought to open here. Corning stock is inching higher, up 0.2% at $27.98, and the aforementioned options traders are hoping to profit from a move above $28 before these contracts expire in October. 

Circuit manufacturer Cemtrex Inc. (NASDAQ:CETX) is one of the top performers on the Nasdaq today, just two sessions after enjoying a post-earnings surge. The stock is up 24.6% at $2.29 -- trading just beneath its 100-day moving average, which has guided the stock lower since its mid-2018 bear gap. 

CETX Chart Aug 22

One of the worst performers on the Nasdaq is biopharmaceutical concern Retrophin Inc (NASDAQ:RTRX), which has fallen 29.6% to $12.25, after the firm's experimental treatment failed a late-stage study in patients with a rare neurological disorder. The stock is eyeing its biggest one-day loss since 2012, and just hit a three-year low of $11.84 earlier.

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