Dow Dips Lower As Inflation Casts Shadow Over Upbeat Earnings

The Dow Jones Industrial Average (DJI) is extending this morning's losses, down 194 points midday. The S&P 500 (SPXand Nasdaq Composite (IXIC) are both trading slightly lower, as the market mostly brushes off a strong day of retail earnings, with companies like Target (TGT) cautioning against the impact of inflation going forward.

Meanwhile, housing starts fell 0.7% to a seasonally adjusted annual rate of 1.52 million units in October, much lower than the 1.6% rise anticipated by analysts. However, building permits rose 4% to an annual rate of 1.65 million, which beat Wall Street's expected 2.6% increase. The 10-year Treasury yield is holding above 1.6% in response.

MMC Nov17

Oil and gas stock Camber Energy Inc (NYSE: CEIis seeing a surge in call volume today, with 97,000 calls across the tape so far, which is seven times the intraday average and roughly 13 times the amount of puts traded. The November 1.50 call is the most popular, with positions being bought to open there. CEI is up 21.7% to trade at $1.35 at last check, as the penny stock receives attention on Reddit forums. 

Near the top of the Nasdaq, today is EyePoint Pharmaceuticals Inc (Nasdaq: EYPT), up 25% to trade at $17.57 at last check, after the company announced its public offering of 4.03 million common shares at $13.75 per share for a roughly $100.3 million equity raise. Year-to-date, EYPT is up 177.1%, with support from its 60-day moving average since early August. 

EYPT mmc

Conversely, StoneCo Ltd (Nasdaq: STNEis plummeting to an annual low, down 28.9% to trade at $22.50 at last glance, after the company reported a third-quarter earnings miss, despite better-than-expected revenue. In response, Evercore ISI lowered its price target to $58 from $74, noting that Brazil's rising CDI rate weighed on StoneCo's financial expenses. Year-over-year, STNE is down 67%. 

Disclaimer: Schaeffer's Investment Research ("SIR" or "we" or "us") is not registered as an investment adviser. SIR relies upon the "publishers' ...

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