Stocks Struggling As Inflation, Earnings Weigh

Stocks are taking a breather today, as Alphabet (GOOGL) earnings pour cold water on recent tech sector resurgence. The Dow Jones Industrial Average (DJI) down 110 points, with a post-earnings selloff from Caterpillar (CAT) also weighing. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also in the red, with all three major indexes sex to snap three-day win streaks. 

The small-cap Russell 2000 (RUT) is bucking the broad market trend today, last seen 1.2% higher and heading for a fourth-straight win. Elsewhere, the Fed's preferred inflation gauge, the personal consumption expenditures price index rose month-over-month but line with expectations, while the annual rate came in just below estimates. 

Fortinet Inc (Nasdaq: FTNT) stock is getting blitzed by options traders today. At last look, over 33,000 options have changed hands, volume that's triple the average intraday amount. The weekly 10/30 120-strike put leads the way, while the weekly 11/6 140-strike call is seeing some activity as well. Fortinet stock is down 20.8% to trade at $137.90, after a trimmed guidance overshadowed the cybersecurity company's earnings beat. BofA Global Research downgraded FTNT to "neutral" from "buy" in response. Year to date the shares are 72% higher, with support stepping up at the 200-day trendline.

Carvana Co (NYSE: CVNA) is near the top of the New York Stock Exchange (NYSE) today, last seen up 16% to trade at $68.49. While third-quarter earnings missed expectations, revenue topped estimates and the retailer hiked its full-year guidance. Deutsche Bank and UBS hiked their price target to $85 and $84, respectively, while Needham and BTIG trimmed theirs to $100 and $82. CVNA stock is down 18.3% year to date.

ServiceNow Inc (NYSE: NOW) stock is on the other end of the aisle, down 23.3% to trade at $113.60. The software company reported third-quarter earnings below expectations, while a lackluster fourth-quarter guidance is also weighing. No fewer than 10 brokerages have trimmed their price targets in response, the worst coming from UBS to $130 from $150. ServiceNow stock is heading for its worst single-session drop on record, and is now down 37% year over year.