All three major indexes are lower at midday
This morning's hotter-than-expected inflation data and a drop in weekly jobless claims have investors fretting over potential interest rate hikes. What's more, Cleveland Federal Reserve President Loretta Mester said she saw a "compelling case" for a 50-basis-point increase at the committee meeting in January. The Dow Jones Industrial Average (DJI) is off 231 points at last glance, while the S&P 500 Index (SPX) and Nasdaq Composite Index (IXIC) sit firmly in the red as well.
Continue reading for more on today's market, including:
- Virgin Galactic stock extends gains after test flight.
- Shopify stock is plummeting after dismal forecast.
- Plus, options bulls target CSCO; TA pops on buyout buzz; and RNG downgraded.
Options bulls are blasting Cisco Systems Inc (NASDAQ:CSCO), after the company's strong fiscal second-quarter results. No fewer than 12 analysts hiked their price targets, with shares last seen 5.2% higher to trade at $50.98. So far, 136,000 calls have crossed the tape -- eight times the intraday average volume -- compared to just 48,000 puts. The February 51.50 call is the most active, with new positions opening there. On the charts, Cisco stock is looking to settle above the 320-day moving average for the first time since April.
Travelcenters of America Inc (NASDAQ:TA) is at the top of the Nasdaq today, up 70.8% at $84.42 at last glance, and trading at its highest level since 2015. This surge comes after news that BP (BP) will acquire the company for approximately $1.3 billion. Year-over-year, the equity is up 106.8%.
Meanwhile, the New York Stock Exchange's (NYSE) RingCentral Inc (NYSE:RNG) is down 23% at $37.26. The software name reported disappointing fourth-quarter results, with Evercore ISI lowering RNG's rating to "in line" from "outperform," while five other analysts chimed in with price-target adjustments. Year-over-year, the equity is down 77.3%.