U.S. Stocks Extend Losses Midday

Investors are more cautious, closely eyeing U.S.-China relations

Assistant Editor
May 29, 2020 at 12:03 PM
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The Dow Jones Industrial Average (DJI) is down nearly 190 points at midday as investors await U.S. President Donald Trump's remarks regarding China. In a change of sentiment, previously bullish top JPMorgan Chase strategist Marko Kolanovic said that he was "dialing down" his optimism due to U.S.-China tensions. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also modestly in the red, though all three indexes are still in the fight to keep their weekly gains. 

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

  • Eli Lilly lands FDA approval.
  • CGC rally scrapped by dismal fourth-quarter results.
  • Plus, DXC sees five times the usual daily volume; Zscaler stock posts a positive report; and the biopharmaceutical stock plummeting on the Nasdaq. 
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One stock seeing unusual options activity today is DXC Technology Co (NYSE:DXC), down 8.8% at $15.10 at last check. The company has seen 8,637 calls and 2,323 puts cross the tape so far -- 12 times the usual daily volume. Most popular by far is the June 10 put, where positions are being opened. This surge in options volume comes after the company reported lower-than-expected first-quarter earnings and revenue. No fewer than seven analysts have handed out bear notes so far -- including a downgrade to "neutral" from "overweight" at J.P. Morgan Securities.

Climbing the Nasdaq today is Zscaler Inc (NASDAQ:ZS), up 21.4% at $92.05 at last check, after a fiscal third-quarter earnings and revenue beat. Following the report, no fewer than nine analysts hiked their price targets, including Rosenblatt Securities to $115. Today's pop has the stock just off a record-high of $95.73, and up 99.5% year-to-date.

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Conversely, MacroGenics Inc (NASDAQ:MGNX) is dropping on the Nasdaq, down 11.7% at $20.30 at last check, after yesterday receiving an update from Food and Drug Administration (FDA) on its breast cancer drug, and this morning landing a price-target hike at Stifel to $36 from $21. The clinical-stage biopharmaceutical company has been sliding since its annual high of $29.50 on May 12, now down 24% for the week.

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