Wall Street Continues to Muse Over Fed Comments


All three major indexes are lower at midday

Investors are unpacking more Federal Reserve remarks today, as they search for clues regarding the disinflation process. New York Fed President John Williams noted interest rates could move higher if financial conditions loosen. Corporate earnings are in focus as well, with both the Dow Jones Industrial Average (DJI) and Nasdaq Composite (IXIC) sporting triple-digit losses at midday, while the S&P 500 (SPX) is firmly lower as well.  

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MMC Feb8

Options traders are blasting Enphase Energy Inc (NASDAQ:ENPH) after the company’s better-than-expected fourth-quarter results and strong current-quarter forecast. So far, 86,000 calls and 40,000 puts have been traded, with overall volume running at five times the intraday average. The weekly 2/10 240-strike call is the most popular, with new positions opening there. At last glance, ENPH was brushing off the win, as well as a host of price-target hikes, down 3.1% at $221.46. Year-over-year, shares are up 53.5%.

Software stock New Relic Inc (NYSE:NEWR) is soaring, up 22.2% at $78.90 at last glance, after the company’s upbeat fiscal third-quarter results and raised forecast. No fewer than nine analysts lifted their price targets after the event. NEWR is trading at its highest level in a year, up 39.9% since the start of 2023. 

Meanwhile, Lumen Technologies Inc (NYSE:LUMN) is taking a post-earnings tumble, down 24.4% at $3.78 after falling to a record low. The company’s fourth-quarter earnings and revenue beat expectations, but its operating income and full-year cash flow targets missed the mark. Two analysts slashed their price targets, pressuring LUMN below previous support at the $5 level.