Stocks Skid Lower as Inflation Rally Fades

Consumer sentiment data helped fuel the pivot lower

Managing Editor
Oct 14, 2022 at 12:17 PM
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Stocks are struggling to stick the landing this week. The Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq Composite Index (IXIC) are all lower at midday, giving up sizable morning gains as inflation expectations and lackluster retail sales dampen investor optimism. 

Wall Street slipped into the red after University of Michigan's consumer sentiment survey, which shows expectations for inflation in the next year, rose to 5.1%, up from September’s one-year low of 4.7%. Elsewhere, earnings season has unofficially kicked off with a slew of bank companies reporting, while oil prices pull back, with November-dated crude last seen down 3.3% at $86.17 per barrel.

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

  • Options traders react to the massive grocery merger.
  • Put traders aren't buying the Beyond Meat job cuts
  • Plus, LAM puts pop ahead of earnings; Delta stock takes on trendline; and fertilizer stocks stink. 

mmcchartoct14

Lam Research Corporation (NASDAQ:LRCX) options are getting loads of attention today. At last check, over 3,500 puts have changed hands, volume that's three times the average intraday amount. The mot popular contract is the weekly 10/14 320-strike put, which is set to expire after the close this afternoon. The semiconductor company reports earnings next week on Oct. 19, while LAM is 55% lower in 2022, tapping a two-year low of $299.59 yesterday. 

Near the top of the New York Stock Exchange (NYSE) this afternoon Delta Air Lines (NYSE:DAL), last seen up 3.1% to trade at $31.32. DAL was upgraded to "outperform" from "market perform" at Cowen this morning, likely in response to the company's upwardly revised fourth-quarter revenue outlook from the earnings report yesterday. The stock tacked on 4% yesterday and is headed for its largest weekly win since May 27. The shares are facing off with their 80-day moving average, a trendline that's contained rallies since a June bear gap.

DAL Stock Chart

Meanwhile, fertilizer stock Mosaic Co (NYSE:MOS) is off by 8.4% to trade at $27.06 at last check, near the bottom of the NYSE.  BofA Global Research trimmed its price target on Mosaic to $71 from $88, while sector peer CF Industries (CF) is also lower today. Year-to-date though, MOS remains up 22.8%. 

 

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