Wall Street Looks To Extend Weekly Losing Streak

Surging bond yields and dismal earnings reports are weighing on sentiment

Digital Content Manager
May 6, 2022 at 12:04 PM
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Wall Street is getting no reprieve from the volatility that preceded yesterday's sharp selloff. The Dow Jones Industrial Average (DJI) is roughly 215 points lower at midday, after yesterday logging its worst day since 2020, which puts it on track for a sixth-straight weekly loss. Both the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are in the red as well, and both are looking to extend their losing streaks for a fifth-consecutive week. 

A surging 10-year Treasury yield, which earlier hit its highest level since 2018 at 3.12%, is weighing on sentiment. Plus, a batch of dismal corporate earnings reports is adding insult to injury, overshadowing better-than-expected nonfarm payrolls data.

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

  • Delays pressure Virgin Galactic stock to record lows.
  • Why Peloton is now threatening to sell a minority stake.
  • Plus, options traders blast DASH; Funko stock pops on investment buzz; and valuation concerns weigh on Cloudflare stock.

MMC Stats 0506

DoorDash Inc (NYSE:DASHis getting blasted in the options pits today, with 16,000 calls and 41,000 puts traded so far, which is eight times the volume that is typically seen at this point. Most popular are the weekly 5/6 68- and 56-strike puts, with new positions being opened at the former. This indicates traders expect more downside for DASH by by today's close, when these contracts expire. Last seen down 5.3% to at $69.28, the security earlier fell to an all-time low of $63.11. The food delivery concern yesterday posted wider-than-expected first-quarter losses, which warranted at least eight price-target cuts today, including one from RBC to $94 from $142. Year-to-date, DASH is down 52.6%.

DASH MMC

Among the Nasdaq's top performers today is Funko Inc (NASDAQ:FNKO), last seen up 21.2% at $20.26. This massive surge came after the pop culture figurine maker posted a 63% year-over-year rise in net sales for its first quarter, and a 31% jump in profits versus a year ago. Plus, the Chernin Group announced it will lead a consortium making a $263 million investment in the company. The security is now pacing for its best day in a year, while trading at is highest level since March. Over the past three months, FNKO has added 17.9%.

Meanwhile, Cloudflare Inc (NYSE:NET) is one of the worst stocks on the New York Stock Exchange (NYSE). The equity is down 11.7% at $68.71, despite the cloud name posting slightly better-than-expected first-quarter earnings. However, valuation worries have analysts slamming the stock with price-target cuts, with eight across the tape so far, including one from Wells Fargo to $70 from $120. The shares earlier hit a fresh annual low of $60.90, and have shed 66% in the last six months.

 

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