Stocks Pivot Lower as New Year Looms

The Richmond Federal Reserve’s manufacturing index beat expectations

Digital Content Manager
Dec 28, 2022 at 11:38 AM
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Stocks are modestly lower midday, as traders unpack pending home sales data, which dropped 4% in November amid high mortgage rates. The Richmond Federal Reserve’s manufacturing index beat Wall Street's expectations, indicating activity in the Virginia and Delmarva region has moved out of contraction territory. Nevertheless, the Dow Jones Industrial Average (DJI) is 130 points lower at last check, while the Nasdaq Composite Index (IXIC) and S&P 500 Index (SPX) are also firmly in the red. 

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

MMC 1228

Options bears are targeting Southwest Airlines Co (NYSE:LUV), as canceled flight rages on in the U.S. So far today, 40,000 puts have been traded, volume that's 17 times the volume that's typically seen at this point, as opposed to 10,000 calls. The most popular contract by a long shot is the12/30 33-strike put, where new positions are now being bought to open, followed by the 32-strike put. Last seen down 1.7% at $33.35, the stock lost support at the 20-day moving average earlier this month, and has shed roughly 27% over the past nine months.

LUV 20 Day

Kala Pharmaceuticals Inc (NASDAQ:KALA) is leading the Nasdaq today, last seen up a whopping 117.4% at $8.52. This bull gap came after the biotech company announced the U.S. Food and Drug Administration (FDA) accepted its application to start human trials for its potential treatment for persistent non-healing corneal defect. The shares are now trading at their highest level since October, and have blasted through long-term pressure at the 40-day moving average. Despite today's gains, KALA is still down 85.8% in 2022.

Near the bottom of the New York Stock Exchange (NYSE) today is Consol Energy Inc (NYSE:CEIX), last seen down 14.2% to trade at $61.47 at last check. Though a specific catalyst for today's negative price action remains unclear, the shares earlier dipped to their lowest level since November, and are eyeing a close below their 140-day moving average. Nevertheless, CEIX is still up a whopping 175.5% in 2022.


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