Dow Eyes Sixth Win in Seven Days as Nasdaq Sells Off

There's a sharp contrast between "reopening" and "stay-at-home" stocks today

Deputy Editor
Nov 10, 2020 at 11:57 AM
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The Dow Jones Industrial Average (DJI) is up over 110 points midday, keeping with this mornings gains as yesterday's vaccine news has the blue-chip index cruising toward its sixth win in seven trading days. This positive sentiment has mixed results elsewhere, however, with "stay-at-home stocks"  -- particularly the tech sector -- selling off, while "reopening stocks" rise. In response, the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are both in the red, the latter heading toward its second-straight day of triple-digit losses.

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

  • Applied Materials stock has unique positioning ahead of earnings
  • How this fashion retailer has been faring after quarterly reports.
  • Plus, options traders unpack Beyond Meat's slide; XPER surges after Comcast agreement; and ARNA plummets after its eczema trial.

MMC1110

One stock seeing notable options activity today is Beyond Meat Inc (NASDAQ:BYND), down 20.3% at $119.96 after a dramatic third-quarter earnings and revenue miss. Amid no fewer than eight other analyst price-target cuts and one raised price target from Wells Fargo, Piper Sandler upgraded the stock to "overweight" from "neutral," and UBS adjusted its rating to "neutral" from "sell" -- with both adding their own price-target cuts into the mix. So far today, 68,000 calls 64,000 puts have crossed the tape -- seven times what's typically seen at this point, with new positions being opened at the most popular option, the weekly 11/13 110-strike put. Dropping below long-term support at the $120 level to hit its lowest point since May, BYND is still up 55.9% year-to-date. 

Meanwhile, Xperi Holding Corporation (NASDAQ:XPER) is up 21% at $16.85 after an upbeat third-quarter report, as well as an announcement that its subsidiary TiVo entered into a 15-year patent license agreement with Comcast Corp. This ends a long-term patent dispute between the two, and prompted a price-target hike from Craig-Hallum to $24 from $20. Currently gapping to levels not seen since mid-August, the stock is still down 19% year-over-year. 

Elsewhere, Arena Pharmaceuticals Inc (NASDAQ:ARNA) is down 26% at $64.78 at last check, after its lead drug etrasimod failed its mid-stage eczema trial. The company also reported a mixed third-quarter report, with narrower-than-expected losses per share alongside a revenue miss. To follow, no fewer than four analysts cut their price targets, including RBC to $76 from $80. Now plummeting to meet support at the 160-day moving average, the stock is still up around 46% year-to-date. 

ARNA mmc

 

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