Stocks Lower Midday as Tech Slumps

Investors are looking ahead to earnings as well as inflation data

Deputy Editor
Jul 11, 2022 at 11:49 AM
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Stocks are lower midday, with the Dow Jones Industrial Average (DJI) and Nasdaq Composite (IXIC) both down triple digits, as investors prepare for this week's inflation data as well as the start to earnings season. Tech stocks are feeling the pain today in particular, with FAANG names all down 1% or more at last check. Elsewhere, according to a survey from the New York Federal Reserve that began in 2013, one-year inflation expectations rose to a record high of 6.8% in June. 

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

  • What's going on with Twitter after Musk pulls deal
  • Why Nio stock is falling lower today. 
  • Plus, options bears target SONO, PLRX soars on positive data; and FSLY drops lower.

MMC July11

Options bears are targeting Sonos Inc (NASDAQ:SONO) at 38 times the average intraday volume today, with 12,000 puts crossing the tape so far. Almost the entirety of this activity can be attributed to the weekly 7/29 14-strike put, with new positions being bought to open. Though the reason for this isn't immediately clear, a report today showed that Virginia Retirement Systems cut its shares of SONO by 74% in the first quarter -- one of many firms making adjustments to their positions recently. 

The best performing stock on the Nasdaq so far today is Pliant Therapeutics Inc (NASDAQ:PLRX), after positive data from a mid-stage study of its lung disorder treatment. Up 114.2% to trade at $19.02 at last glance, the shares were earlier as high as $22.55, their highest level in almost a year. In response to the news, RBC raised its price target to $54 from $32. 

Meanwhile, among the worst stocks on the New York Stock Exchange (NYSE) is Fastly Inc (NYSE:FSLY), last seen down 14% to trade at $11.61 after a downgrade from Morgan Stanley to "underweight" from "equal weight." FSLY has had a history of large price swings lately, including a 10.1% move higher on July 7. The growth stock is seeing double its usual volume in the options pits, though today's drop has it on the Short Sell Restricted (SSR) list. On Friday, the stock was rejected by long-term pressure at the 80-day moving average. 

FSLY July11

 

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