Stocks Extend Losses With Tech Selloff

Oil prices are rapidly falling midday as well

Assistant Editor
Sep 8, 2020 at 11:56 AM
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The Dow Jones Industrial Average (DJI) and Nasdaq Composite (IXIC) are sharply selling off to start the holiday-shortened week, plummeting as the tech sector once more weighs heavily on the major indexes. The S&P 500 Index (SPX) is also firmly in the red, as all three benchmarks head toward their third-straight loss.

Geopolitical tensions are contributing to the headwinds as well, after China launched its new global data security initiative, with China accusing the U.S. of "bullying." Meanwhile, oil futures are falling to their lowest levels since June, with October-dated crude down 8.9%, or $3.01, at $36.76 a barrel. 

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

  • This beer stock is slipping amid a C-suite shakeup.
  • Starbucks stock plans a plant-based roll-out across Asia. 
  • Plus, call traders pile on AEO; Nikola surges on GM partnership; and ACMR plummets on downgrade. 

mmc chart sep 8

One stock on the New York Stock Exchange (NYSE) seeing notable options activity is American Eagle Outfitters Inc (NYSE:AEO). The retail stock was last seen up 3.4% at $13.30, after UBS raised its price target to $15.50 from $14.50. So far, 54,000 calls and 12,000 puts have crossed the tape, with total options volume eight times what is typically seen at this point. Most popular is the November 12 call, followed by the 16-strike call in the same session, with new positions being opened at the latter. 

Topping the Nasdaq today is Nikola Corporation (NASDAQ:NKLA), up 37% at $48.70 at last check, after General Motors (GM) took an 11% stake in the electric truck maker. Now up an impressive 362% year-to-date, the equity is contending with the 60-day moving average, a familiar level of resistance since its July 20 bear gap

nkla mmc sep 8

On the other end of the spectrum is ACM Research Inc (NASDAQ:ACMR), last seen down 23.3% at $62.98 after Needham downgraded the stock from "buy" to "hold." The semiconductor stock is on track for its third-straight loss, but remains up 236% year-to-date. 

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