All three major benchmarks are lower at midday
The Federal Reserve's incoming interest rate decision is the talk of the town today, with the central bank expected to raise rates by 50 basis points. The Dow Jones Industrial Average (DJI) is around 50 points lower at midday, erasing this morning's triple-digit gains. Meanwhile, both the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are eyeing steeper afternoon losses, as Big Tech names Amazon.com (AMZN) and Netflix (NFLX) tumble. Investors are also digesting a disappointing ADP private payrolls report for April.
Continue reading for more on today's market, including:
- Why options traders are blasting Airbnb stock post-earnings.
- Uber stock hits 2-year lows after reporting investment losses.
- Plus, another sinking ridesharing stock; Livent stock upgraded on quarterly win; and RVLV issues dismal revenue outlook.
Ridesharing name LYFT Inc (NASDAQ:LYFT) is seeing an unusual amount of options activity today. So far, 84,000 calls and 87,000 puts have been traded, which is 18 times the intraday average. Most popular is the weekly 5/6 20-strike put, followed by the 5/13 21-strike put, with new positions being opened at both. Lyft stock is down 34.4% to trade at $20.18 at last check, despite posting first-quarter earnings and revenue beats. Instead, weighing on the equity is the company's disappointing current-quarter forecast, which drew at least 18 price-target cuts, including a hefty one from Stifel to $28 from $46. LYFT earlier hit a two-year low of $20.02, and now carries a 52.9% year-to-date deficit.
Livent Corp (NYSE:LTHM) is among the New York Stock Exchange's (NYSE) top performers today. Last seen up 22.9% at $26.99, the company reported blowout first-quarter earnings of 21 cents per share, while revenue also came in above Wall Street's expectations. As a result, Livent raised its 2022 revenue forecast on higher lithium demand. The security earlier earned an upgrade from Cowen and Company to "outperform" from "market perform," and a price-target hike to $33 from $25. The shares are now looking to close at their highest level since late March, and are up 50.1% in the last 12 months.
Meanwhile, Revolve Group Inc (NYSE:RVLV) is towards the bottom of the NYSE, last seen down 22.1% to trade at $34, after hitting an annual low of $33.78 earlier today. The retailer is brushing off better-than-expected first-quarter earnings and revenue, following its dismal current-quarter revenue outlook. At least seven firms have slashed their price targets on RVLV, with BMO cutting its objective to $35 from $47. Revolve Group stock is now well below its 10-day moving average, and has shed 52.9% over the past nine months.
