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Stock Market Today: GE, Cisco and Canopy Make Wild Moves


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It's no shocker, but Thursday has been another volatile trading session. Following Wednesday's action - where the Dow Jones Industrial Average fell 800 points and the Nasdaq Composite tumbled 3% - it was a mixed session in the stock market today. It wasn't exactly the rebound that bulls were hoping to muster given the massive declines experienced a day prior.

Stock Market Today: GE, Cisco and Canopy Make Wild Moves

The stock market got off to a quick rally on the day, took an afternoon spill and then regained its footing. The SPDR S&P 500 ETF (NYSEARCA: SPY ) rallied roughly 0.4%, the PowerShares QQQ ETF (NASDAQ: QQQ ) was mostly flat and the SPDR Dow Jones Industrial Average ETF (NYSEARCA: DIA ) finished higher by about 0.6%.

Movers in the Stock Market Today

Shares of Pivotal Software (NYSE: PVTL ) erupted almost 70% to just over $14 after it was announced that VMWare (NYSE: VMW ) intends to acquire the company at $15 per share. The interesting thing is that VMW - which is down about 7% on the announcement - is trying to get Dell Technologies (NYSE: DELL ) to exchange its B shares for A shares.

General Electric (NYSE: GE ) stock fell quite a bit on the day, although recovered off its lows. Shares finished lower by over 11% after a whistleblower called GE "meritless" for hiding financial problems. Accounting issues are never a good sign, and it's no wonder investors sold the stock as a result. However, management has already disputed the claim, calling it market manipulation.

Cisco Systems (NASDAQ: CSCO ) took it on the chin Thursday, falling over 8% after disappointing quarterly results. While earnings and revenue results came in ahead of expectations, guidance came up a bit short. The stock blew through all sorts of significant support levels , leaving CSCO stock flailing in no man's land. Macro headwinds continue to create problems for U.S. companies and Cisco is the latest one.

Alibaba (NYSE: BABA ) initially jumped 5% in early Thursday trading. However, the stock closed higher by about 3% after a late-session jump. The action comes after Alibaba reported a top- and bottom-line beat and showed strength in its underlying business. Analysts liked the quarter too, praising the results and maintaining price targets significantly above current levels .

( Here's how to trade Alibaba , by the way).

What Canopy Growth (NYSE: CGC ) investors would give to have the same post-earnings reaction as Alibaba. Shares are getting crushed Thursday, down about 15% after an earnings and revenue miss. A loss of $3.70 per share took investors by huge surprise, thanks to extinguishing warrants with Constellation Brands (NYSE: STZ ).

However, management did not provide an adjusted earnings result, causing concern and confusion among investors. Revenue came up short too. It was a lose-lose report and now shares are at their lowest point since the start of 2019.

The demand for bonds remains intense, as the iShares 20+ Year Treasury Bond ETF (NASDAQ: TLT ) continues to press higher. The ETF hit a new 52-week high on Thursday and the upside volatility continues to cause investor concern in the equity market in the short term.

Key Levels to Watch


Above is a chart of the SPY ETF, representing the S&P 500 . With Thursday's afternoon decline, the August lows near $281.72 were almost tested. Buyers stepped in early enough to prevent it, but many traders are hesitant to buy without the SPY not testing the 200-day moving average.

A test of the 200-day would "clear the air" for a lot of investors, so to speak. It would also give investors a pullback down to the 38.2%. Seeing how SPY reacts to this level would help investors gauge what type of environment we're working with.

The 20-day is now below the 50-day moving average, indicating that the short-term trend is now more bearish. If the August lows hold, see if the SPY can reclaim the 100-day moving average (not shown above) at $239.40.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.

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The post Stock Market Today: GE, Cisco and Canopy Make Wild Moves appeared first on InvestorPlace .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , US Markets
Referenced Symbols: PVTL , VMW , DELL , GE , CSCO



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