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Market Index Green Streak Ends, for Now; Plus Q3 from COIN, DASH & More

Profit-taking clearly plays a role in today's sell-off, which wasn???t even really much of an event.

This story originally appeared on Zacks

Markets finally took a breather today from another very healthy stretch of index growth, coming off record closing highs Monday afternoon and stringing together long streaks of green, going back more than two weeks in some cases. The Dow dropped 111.7 points, -0.31%, while the S&P 500, after showing gains in 17 of the past 19 sessions and +6.7% in the past month, was -0.35%. The Nasdaq fell -0.60% after 11 straight higher trading days, and the Russell 2000 dropped -0.63% a day after setting a record closing high.

Analysts may make a case for a roiling Producer Price Index (PPI) number coming in at +0.6% before today’s open, although this was the number already expected by those paying close attention to these sorts of inflation metrics. Tomorrow’s Consumer Price Index (CPI) is also anticipated to come in at +0.6%, so any surprise to the upside may be more cause for concern on the inflation issue. These are historically hot month-over-month numbers, and the CPI number is usually considered to be more consequential for near-term economic growth.

Yet profit-taking clearly plays a role in today’s sell-off, which wasn’t even really much of an event. The Nasdaq is up almost +10% over the past month alone; a mere -0.6% sell-off is more than manageable. Utilities and Materials were the best-performing sectors on the S&P 500 today, while Consumer Discretionary lagged once again. We will keep an eye on CPI levels tomorrow — in addition to weekly jobless claims data coming out a day early — to see if inflationary concerns in the near term may be more warranted.

Crypto exchange platform Coinbase COIN missed expectations on both top and bottom lines after the closing bell on its Q3 earnings report, with $1.62 per share coming up short of the $1.79 analysts were looking for, on $1.31 billion in revenues which was light of the $1.56 billion in the Zacks consensus. This is the second-straight earnings miss for the company, on Trading Volume that was also light of expectations.

DoorDash DASH posted mixed results in its Q3 report after Tuesday’s closing bell, missing on its bottom line to -30 cents per share on revenues in the quarter of $1.28 billion, which surpassed the $1.18 billion expected, and shares have been volatile in the late session as a result. DoorDash also announced its largest-ever acquisition, Helsinki-based Wolt, for $8.1 billion in all stock. At this time, DASH shares are +5% in late trading.

Other smaller companies are getting hit hard in the after-market, such as Poshmark POSH which is down a whopping -27% on the company’s sales and earnings miss, while A.I. lending platform Upstart UPST beat expectations and still managed to lose -20% in late afternoon trading. Perhaps the selling mood has yet to be exhausted at this stage, which will make tomorrow’s CPI number possibly even more important, near term.

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