Alphabet and Tesla both reported disappointing results
The Nasdaq Composite Index (IXIC) is plummeting today, down 376 points as the tech sector reels following disappointing quarterly results from Tesla (TSLA) and Alphabet (GOOGL). The Dow Jones Industrial Average (DJI) is down triple digits as well, while the S&P 500 Index (SPX) eyes its worst daily percentage drop since September 2023.
Wall Street is unpacking weaker-than-expected manufacturing data, and new home sales that came in lower than expected in June. The U.S. flash manufacturing purchasing managers' index (PMI) fell to 49.5 in July -- below the 50-mark representing contraction territory and missing analyst estimates of 51.5.
Continue reading for more on today's market, including:
- AT&T stock pops on subscriber growth.
- More on Alphabet's disappointing quarterly report.
- Plus, BHC's crash reels in traders; AVTR jumps on index inclusion; and SAGE falls on trial data.
Options traders are targeting Bausch Health Companies Inc (NYSE:BHC), as the stock plummets 43.9% into penny stock territory at $4.29, after reports that the company is negotiating a potential prepackaged chapter 11 bankruptcy filing. So far, 11,000 calls and 37,000 puts have been exchanged, which is already 15.2 times the average daily options volume. The weekly 7/26 5-strike put is the most popular, where new positions are being bought to open.
Avantor Inc (NYSE:AVTR) is up 6.7% at $22.58 at last glance, and has already seen 6.2 times its average daily options volume as well, after the stock's inclusion on the S&P MidCap 400. Breaking above pressure at the 40-day moving average, which has been in place since late May, the stock is further removing itself from this month's six-month lows. Year to date, AVTR is still just barely below fair value with a 1% deficit.
Sage Therapeutics Inc (NASDAQ:SAGE) is down 16.9% at $10.87 and on the short sell restricted (SSR) list today, after results showed the company's experimental pill failed to quell involuntary muscle shaking in patients with essential tremor. The $10 region, which provided a floor through June though the stock marked a June 11 record low of $9.76, appears to be keeping a cap on today's losses.
