Recession Fears, Hong Kong Tensions Weigh Heavy on Stocks
Increasingly violent protests have contributed to a major sell-off for stocks today
The escalating protests in Hong Kong continue to weigh on the Dow Jones Industrial Average (DJI), which has taken a near 250-point nosedive today. In addition, lingering concerns about U.S.-China trade tensions have trade-sensitive Dow component Caterpillar (CAT) getting slammed as a result. Meanwhile, fears about a global recession and China's softening currency against the U.S. dollar are weighing on Treasury yields and bank stocks. Against this backdrop, the Nasdaq Composite (IXIC) and S&P 500 Index (SPX) are also slipping at midday.
Continue reading for more on today's market, including:
Why investors should sell this chip stock, according to one analyst. The pot stock falling deeper into penny-stock territory. Plus, options traders swarm PAAS; RKDA surges to the top of Nasdaq again; and MLNT stock sinks on an analyst drubbing.
Options bears are swarming Pan American Silver Corp. (NASDAQ:PAAS). So far, about 4,100 puts have exchanged hands -- four times what is typically seen at this point in the day. The August 16 put is the most popular,followed by the October 14 put, where contracts are being sold to open. PAAS is up 1.1% at $17.25, at last check.
Arcadia Biosciences Inc (NASDAQ:RKDA) is once again on the top of the Nasdaq, following Friday's regulatory nod for its drought-tolerant soybeans. The equity has gapped another 39% higher to trade at $6.27, and hit a four-month high of $7.35 earlier. Plus, RKDA is eyeing its first close atop its 320-day moving average since late February.
Melinta Therapeutics Inc (NASDAQ:MLNT) is one of the worst performers on the Nasdaq, after H.C. Wainwright slashed its rating to "neutral" from "buy." The stock is down 8.7% at $2.60, headed for its fourth day in the red. While the equity is down on the day, it's still trading atop last Friday's two-month low of $2.18 -- suffered after a disappointing second-quarter earnings report and Melinta's CEO resignation.