MMR

Dow Drops Triple Digits; S&P 500 Set to Snap 8-Day Win Streak

Investors are unpacking plenty of economic data

Deputy Editor
Nov 9, 2021 at 12:23 PM
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The major benchmarks are sinking this afternoon, with the Dow Jones Industrial Average (DJI) down 189 points midday. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are significantly lower as well, while the former is set to snap an eight-day win streak -- its longest since April 2019.

The October producer price index (PPI) reading rose 0.6%, as expected, marking an 8.6% year-over-year jump. Meanwhile, the National Federation of Independent Business (NFIB) survey showed small business confidence dropping 0.9 points to 98.2 last month -- its lowest level since March. 

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

  • Analyst calls Cinemark stock a top recovery play. 
  • General Electric stock hits multi-year highs on spinoff buzz
  • Plus, options traders target tumbling PYPL; and 2 stocks on J.P. Morgan's radar after earnings. 

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PayPal Holdings Inc (NASDAQ:PYPL) is seeing a surge in options activity after its dismal third-quarter report. So far, 351,000 calls and 168,000 puts have crossed the tape, which is six times the intraday average. The weekly 11/12 210-strike call is the most popular, followed by the weekly 11/12 200-strike put, with new positions being opened at both. Down 12.1% to trade at $201.74 at last check, it's also worth noting that PYPL has landed on the Short Sale Restricted (SSR) list today. 

Near the top of the New York Stock Exchange (NYSE) today is New Relic Inc (NYSE:NEWR), up 30.2% to trade at $118.38 at last check, after the company posted narrower-than-expected fiscal second-quarter losses per share, as well as a revenue beat. J.P. Morgan Securities upgraded the stock to "overweight" from "underweight," with a lofty price-target hike to $150 from $70, while no fewer than six other firms raised their price targets as well. Gapping to fresh record highs, NEWR is up 81.4% year-to-date. 

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Conversely, Lifestance Health Group Inc (NASDAQ:LFST) is plummeting to record lows after its dismal third-quarter report, down 30.5% to trade at $8.92 at last check. J.P. Morgan Securities downgraded the stock to "neutral" from "overweight," with a price-target cut to $12 from $24. Three other analysts chimed lowered their price objectives as well. Publicly traded since June, LFST is down 61.5% in the last three months.

 

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