Stocks Fall After Jobs Data Enables Hawkish Fed

This morning's upbeat jobs data is weighing on Wall Street today, increasing the likelihood that the Federal Reserve will continue its hawkish interest rate policy. The Dow Jones Industrial Average (DJI) and the Nasdaq Composite Index (IXIC) sport triple-digit deficits midday, while the S&P 500 Index (SPX) is also deep in the red.  

Midday Market Stats January 052023

Options bears are targeting American Eagle Outfitters Inc (NYSE: AEO) after UBS cut its price target on the stock to $22 from $23. Already, 7,732 puts have crossed the tape, good for volume that is 13 times the average intraday amount. New positions are being opened at the most popular contract, the weekly 1/13 15-strike put. At last glance, AEO is 1.7% lower to trade at $15.05. After a brief dip below its 20-day moving average, American Eagle stock has reclaimed the trendline, though its remains 38.4% lower over the last year.

AEO Chart January 052023

Valero Energy Corporation (NYSE: VLOis trading near the top of the S&P 500 this afternoon, up 3% to trade at $123.26. The oil & gas stock received a price-target hike from Wells Fargo this morning to $140 from $137, territory not seen since late November. Year-over-year, VLO is up 57.4%. 

Coinbase Global Inc (Nasdaq: COINis 11.5% lower to trade at $33.38 this afternoon, and trading near the bottom of the Nasdaq after the crypto concern reached a $100 million settlement with U.S. regulators. The settlement stems from anti-money laundering failures, including a massive backlog of unrelieved transactions and a reliance on social media to confirm the identity of its customers. In the last 12 months, COIN is down 85.8%.

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