Dow Reverses Morning Rally as Recession Fears Swirl

The 10-year Treasury yields is cooling off

Digital Content Manager
May 10, 2022 at 12:00 PM
facebook X logo linkedin


Stocks are shedding their premarket gains at midday, and are now looking to extend yesterday's major selloff. The Dow Jones Industrial Average (DJI) is 113 points lower this afternoon, erasing an earlier 500-point lead, after a dip in the transports sector stoked recession fears. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also lower, though the tech sector is seeing tailwinds from a cooling 10-year Treasury yield. While earnings season is tapering off, investors will unpack reports from Coinbase (COIN) and Roblox (RBLX) after today's closing bell.

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

  • Why options bulls are blasting this cruise stock.
  • Dismal forecast sends Peloton stock racing lower.
  • Plus, Upstart stock's unusual options activity; Pfizer's big acquisition; and court decision weighs on Pegasystem stock.

MMC Stats 0510

Upstart Holdings Inc (NASDAQ:UPSTis getting blasted in the options pits today. So far, 110,000 calls and 93,000 puts have been exchanged, or sis times the volume that is normally seen at this point. Most popular are the 5/13 40-strike call and 30-strike put, with new positions being opened at both. The security is sinking today, last seen down 59.4% to trade at $31.35, after the company posted a dismal current-quarter forecast, which overshadowed better-than-expected first-quarter earnings. In turn, the security attracted two downgrades, one from Piper Sandler to "neutral" from "overweight," in addition to one from Stephens to "underweight" from "equal weight," as well as four price-target cuts. Upstart stock is now trading at ITS lowest level since going public in December 2020, and carries an 80% year-to-date deficit.

At the top of the New York Stock Exchange (NYSE) today is Biohaven Pharmaceutical Holding Co Ltd (NYSE:BHVN), last seen up 70.6% to trade at $141.83, after Pfizer (PFE) announced it will buy the drug maker for roughly $11.6 billion in an all-cash deal. Plus, the company reported a first-quarter revenue beat, though it saw wider-than-expected losses of $2.97 per share. The shares are now eyeing their best settlement since February, while trading at their highest level since November. Year-over-year, BHVN is up 104.8%.

Meanwhile, Pegasystems Inc. (NASDAQ:PEGA) is towards the bottom of the tech-heavy Nasdaq. The equity is down 36.7% to trade at $41.71, after a U.S. court directed the software concern to pay $2.04 billion in damages to Appian (APPN) for trade secret misappropriation. As a result, Pegasystems stock earlier fell to a roughly five-year low of $36.50, and is now well below recent overhead pressure at its 40-day moving average. In the last nine months, PEGA has shed 66.8%.

PEGA 40 Day

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI