Tech Stocks Suffer as 'Fear Gauge' Rises

The Nasdaq is headed for its worst session in over four weeks

Managing Editor
Jan 31, 2024 at 12:11 PM
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Tech stocks are getting bashed today, with the Nasdaq Composite (IXIC) headed for its worst single-session drop since Jan. 2. Alphabet (GOOGL) is in the red after ad revenue missed expectations, while Microsoft (MSFT) is suffering a post-earnings pullback of its own. Ahead of the Federal Open Market Committee (FOMC) interest rate decision -- with the central bank widely expected to keep interest rates steady -- the Cboe Volatility Index (VIX) is trading at its highest level in two weeks. 

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

  • How are traders reacting to Alphabet earnings?
  • Why this streaming stock is breaking out today.
  • Plus, SBUX bulls unfazed; Boeing stock finally rises; and a chip stock cooling off.

MMC Stats Jan 31

Starbucks Corp (NASDAQ:SBUX) stock is getting blasted in the options pits today, after the coffeemaker's earnings report. So far, 161,000 contracts have been traded, volume that's six times the average intraday amount. The weekly 2/2 100-strike call is most popular, with new positions being bought to open. Starbucks reported a top-line whiff for the fiscal first quarter, prompting eight price-target cuts, the worst stemming from Bernstein to $100 from $106. Starbucks stock is only down 0.8% to trade at $93.35 at last check, however, because the company also shared record revenue.

Boeing Co (NYSE:BA) stock is pacing the Dow today, up 5.7% to trade at $211.82, after the airliner's fourth-quarter losses and revenue topped estimates. Boeing stock fell more 20% since a Dec. 21 two-year high of $267.54, gapping lower following a string of highly publicized 737 MAX safety malfunctions.  

Advanced Micro Devices, Inc. (NASDAQ:AMD) is struggling today, down 2.7% at $267.54. While fourth-quarter earnings were in line with estimates and revenue topped forecasts, a softer-than-expected first-quarter guidance estimate is denting AMD. Still, 11 analysts hiked their price targets in response, while Raymond James trimmed its target to $180 from $195, with cuts also coming from UBS and Susquehanna. The stock hit a Jan 25. record high of $184.92 and is still up 13% in 2024.

MMC Stock Chart AMD

 

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