Stocks Give Back Gains As Recession Fears Take Root

Stocks have given back their premarket gains by the midway mark, with the Dow Jones Industrial Average (DJIdown 231 points this afternoon, while the S&P 500 Index (SPXand Nasdaq 100 Index (NDXare also firmly in the red. More fears over the state of the economy are sparking this selloff, as investors nervously eye a sharp drop in job openings for April. JPMorgan CEO Jamie Dimon has chimed in, warning investors to brace for a "hurricane." Oil prices, meanwhile, are climbing even higher. U.S. West Texas Intermediate crude was last seen up 1.1% at $116.17 per barrel. 

mmc june 1

Capri Holdings Ltd (NYSE: CPRIis seeing an elevated amount of options activity today, following the luxury retailer's fiscal fourth-quarter earnings and revenue win. CPRI was last seen up 0.2% at $48.82, with a smaller-than-expected full-year revenue outlook weighing on some of its earlier gains. In response, 3,556 calls and 2,963 puts have been picked up so far, which is double the intraday average. Most popular is the 6/3 48-strike put, followed by the 51-strike call in that weekly series, with positions being opened at both. This means traders are speculating on additional upside for the underlying stock by the time these contracts expire at Friday's close. Year-to-date, CPRI is down more than 23%.

One of the best-performing stocks on the Nasdaq today is Helius Medical Technologies Inc (Nasdaq: HSDT), which was last seen up 37.6% to trade at $2.01. The healthcare concern announced the launch of its Patient Therapy Access Program (PTAP) for Portable Neuromodulation Stimulator (PoNS) therapy earlier at a reduced price. The stock has lost 60.4% so far this year, but today's pop has it eyeing a close above its 30-day moving average for the first time since early March. 

hsdt june 1

One of the worst performers on the Nasdaq, meanwhile, is Enochian Biosciences Inc (Nasdaq: ENOB). ENOB is down 31.5% at $3.61, after Hinderburg Research released a full short report on the company, following the arrest of Enochian's co-founder Serhat Gumrukcu in an alleged murder-for-hire scheme. The research firm called Gumrukcu's qualifications as a medical professional into question, claiming it was not able to prove he is a licensed medical doctor. ENOB logged a May 25, one-year low of $2.67, and earlier came dangerously close to sinking further. Year-to-date, the stock has lost 49.7%. 

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.