Shrinking Treasury yields caused the Dow to hit a new two-month low
The Dow Jones Industrial Average (DJI) has resumed its slide, following yesterday's brief respite, down more than 300 points after touching a new two-month low earlier. The slump is sparked in part by plummeting bond yields and fears of a recession, with investors turning back to "safe haven" commodities like gold. Front-month gold futures were last seen 2.4% higher at $1,520.30 an ounce. Meanwhile, oil prices continue to sink, with front-month crude 5.3% lower at $50.81 per barrel.
On the trade front, President Donald Trump is expected to announce a new rule barring government agencies from buying telecom, video surveillance equipment, or services from Chinese firm Huawei. In addition, Trump urged the Federal Reserve to "cut rates bigger and faster, and stop their ridiculous quantitative tightening NOW." As such, the Nasdaq Composite (IXIC) and S&P 500 Index (SPX) are in the red, too.
Continue reading for more on today's market, including:
- The new partnership boosting BYND stock.
- Why Bernstein is dumping this software stock before earnings.
- Plus, options volume pops after CVS reveals earnings; Cambrex stock surges in buyout deal; and New Relic gets slammed by analysts.
Options traders are piling on CVS Health Corp (NYSE:CVS), after the firm posted an earnings and revenue beat, and lifted its 2019 profit forecast. So far, 44,000 call contracts and 29,000 put contracts have exchanged hands -- four times the intraday norm. The weekly 8/9 55-strike put contract is the most popular, with positions being opened here, followed by the August 57 call, where contracts are being bought to open. At last check, CVS is up 4.3% at $56.45.
Biotech concern Cambrex Corp (NYSE:CBM) is one of the best stocks today, after privately owned equity firm Permira Funds said it would buy the company for roughly $2.02 billion, or about $60 per share. CBM stock is now up 46.8% at $58.88 -- eyeing its best day ever. What's more, the stock is set for its first close back atop its 320-day moving average since its late-November bear gap.
New Relic Inc (NYSE:NEWR), is one of the biggest underperformers today, down 30.6% at $58.10, after a number of brokerage firms came after the stock on its fiscal first-quarter billings miss. No fewer than five analysts slashed their price targets, with UBS and BMO Capital cutting their estimates to $73. Plus, Raymond James downgraded the stock to "market perform" from "outperform," and Wedbush removed NEWR from its Best Ideas list.