Dow Drops Over 700 Points as Recession Fears Simmer

Recession concerns are at the forefront of investors' minds today

Deputy Editor
Jul 5, 2022 at 12:06 PM
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The Dow Jones Industrial Average (DJI) is off 709 points at midday, as recession concerns stew on Wall Street. Investors are watching for signals, including the 10-year Treasury yield as it declines toward the 2-year yield, and the very real possibility of a second-straight quarterly decline in U.S. gross domestic product (GDP), which would meet the technical definition of a recession. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are seeing calmer losses, though Tesla (TSLA) and Microsoft (MSFT) are weighing on the latter. 

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

  • Why Stellantis stock is moving lower today. 
  • Analyst sees attractive entry point for this shoe retailer. 
  • Plus, options bears target LAZR; TD considers buying COWN; and STAF plummets into penny stock territory. 

MMC Stats July5

Luminar Technologies Inc (NASDAQ:LAZR) is seeing a surge in bearish options activity this afternoon, with 123,000 puts across the tape so far, which is seven times what is typically seen at this point. The July 5.50 and 6 puts are the most popular, with new positions being bought to open at both. LAZR was last seen down 1.9% to trade at $5.92 -- a fresh record low. Year-over-year, the stock is down 71.7%. 

One of the best performing stocks on the Nasdaq today is Cowen Inc (NASDAQ:COWN), after news that TD Bank (TD) is considering a takeover deal for the firm. COWN was last seen up 19.2% to trade at $28.67, though the stock's 180-day moving average still lingers as overhead pressure. Year-to-date, the equity is still down 18.7%. 

COWN July5

Staffing 360 Solutions Inc (NASDAQ:STAF) is one of the worst stocks on the Nasdaq today, down 21.4% at $4.85 and dipping into penny stock territory for the first time ever. The company yesterday reported better-than-expected fiscal fourth-quarter earnings of $1.60 per share, though revenue came in lower than anticipated. Plus, the employment services name announced a $4 million private placement priced at-the-market under Nasdaq rules after the close on Friday. Year-over-year, the equity is down 90.2%. 


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