Stocks Extend Selloff as Snap Stock Drags Tech Sector Lower

The 10-year Treasury yields pivoted lower amid recession fears

Digital Content Manager
May 24, 2022 at 12:01 PM
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Stocks are extending this morning's selloff at midday, as hopes of a rebound go down the drain. The Dow Jones Industrial Average (DJI) is down 457 points this afternoon, as recession fears swirl and push the 10-year Treasury yield lower. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are deep in the red as well, as Snap (SNAP) eyes its worst day ever after the company warned it would miss current-quarter earnings and revenue targets, igniting a sector-wide breakdown. Investors are now eyeing new home sales data and Federal Reserve Chair Jerome Powell's remarks at the National Center for American Indian Enterprise Development summit. 

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

  • Diving into Broadcom's potential VMware buyout.
  • Retail stock brushing off a top- and bottom-line win.
  • Plus, ZM options run red-hot; Mesa Royalty stock adds to impressive 12-month lead; and apparel name could extend losing streak.

MMC Stats 0524

Zoom Video Communications Inc (NASDAQ:ZM) is attracting an unusual amount of options activity today, with 78,000 puts and 75,000 calls across the tape so far, which is eight times the intraday average. Most popular is the weekly 5/27 100-strike call, with new positions being opened there. Last seen up 3.3% at $92.23, the company yesterday posted first-quarter earnings of $1.03 per share on $1.07 billion in revenue, beating Wall Street's estimates. Plus, the company hiked its full-year profit forecast, betting on strong demand amid hybrid work environments, though it also saw its slowest revenue growth since going public. In turn, the equity received at least four price-target cuts, including one from Citigroup to $99, though Benchmark raised its price objective to $108. The stock is just off a May 12, two-year low of $79.03, and carries a 51.7% year-to-date deficit.

Towards the top of the New York Stock Exchange (NYSE) today is Mesa Royalty Trust (NYSE:MTR). The equity is up 3.4% to trade at $19 at last check, and earlier hit a roughly four-year high of $19.65, though there was no clear reason for this positive price action. Shares have been tearing up the charts so far this year, with support from its 40-day moving average. Longer term, Mesa Royalty stock sports a whopping 247.3% lead year-over-year.

MTR 40 Day

Meanwhile, Abercrombie & Fitch Co. (NYSE:ANF) is among the worst stocks on the NYSE, last seen down 29.1% to trade at $18.94. The apparel retailer posted a surprise loss of 27 cents per share for the first quarter, and also slashed its full-year forecast due to higher costs and lower demand. The security earlier hit 18-month low of $18.31, and is currently eyeing its fifth-straight daily loss. Over the last 12 months, ANF has shed 49.3%.

 

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