The Dow has given back over 1,200 points in the last two days
It's looking like an ugly end to the week, with stocks extending yesterday's selloff. The Dow Jones Industrial Average (DJI) is down more than 480 points midday and has lost over 1,200 points in the last two days, with Apple (AAPL) and Salesforce.com (CRM) leading the losses. The Nasdaq Composite (IXIC) and S&P 500 Index (SPX) are getting pummeled, as investors shrug off upbeat July unemployment data. All three benchmarks are eyeing steep weekly losses.
Elsewhere, the 10-year treasury yield is bouncing back, somewhat shielding bank stocks from the carnage today. Also worth monitoring is the Cboe Volatility Index (VIX), which is eyeing its biggest weekly gain since Feb. 28.
Continue reading for more on today's market, including:
- Apple supplier Broadcom is bucking the tech selloff.
- A downgrade has cooled off Lululemon stock.
- Plus, STM options bears target more losses; Signet Jewelers enjoying bull notes; and PayPal stock support stepping up.
One stock seeing notable options activity is STMicroelectronics (NYSE:STM). The semiconductor specialist was last seen down 2.4% at $27.66, likely a casualty of the broader market's tech pullback. So far, puts are trading at 18 times the average intraday amount, and volume that's already at a new annual high. Most of this attention is centered around the September 25 put, where new positions are being opened. In other words, buyers of these puts are banking on more downside from STM in the next two weeks, when the contracts expire.
Signet Jewelers Ltd. (NYSE:SIG) is one of the few stocks making outsized moves higher today, up 4.9% at $18.75 at last check. Yesterday, the jewelry name reported a second-quarter earnings beat, and today three brokerages have upped their price targets, including Telsey Advisory to $18. SIG is up 85% this quarter, with support emerging at its ascending 20-day moving average.
One of the worst stocks on the Nasdaq today is PayPal Holdings Inc (NASDAQ:PYPL), down 8.2% at $188.10, landing on the short-sale restricted list this morning. Although the fintech name is on track for its worst single-session decline since March 20, PYPL is up 74% in 2020, and today's damage has been mostly contained by its 50-day moving average.
