Why Chasing Volatility with a VIX ETF is a Tricky Proposition
42 minutes ago
U.S. investors looking for positive returns had few options on Monday. Stocks tumbled while Treasury bond prices pared early gains. The U.S. dollar slumped and commodities of all stripes—including gold, a traditional safe haven—slid.
One index that was in the green: the Cboe Volatility Index (VIX), which surged to its highest level since March 2020 amid Monday’s turmoil.
Commonly referred to as the “fear index,” the VIX is a measure of expected stock market volatility that is calculated with S&P 500 options prices. It often spikes when U.S. stocks tumble. For that reason, it can be tempting to view the VIX as a hedge against market routs like Monday’s, but the index is technically impossible to invest in directly.
Traders who want to use the VIX to offset equity losses may instead be tempted to use a VIX exchange-traded fund (ETF), though doing so comes with substantial risk.
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TASER maker Axon Jumps to All-Time High After Earnings
1 hr 58 min ago
Horacio Villalobos / Corbis via Getty Images
Axon Enterprise (AXON) shares soared to an all-time high Wednesday after the TASER maker posted better-than-expected sales and boosted its full-year guidance on strong services demand and excitement about its Draft One artificial intelligence product.
The supplier of military and police gear reported second-quarter revenue jumped 34.6% year-over-year to $504.1 million, well above the average estimate of $478.2 million of analysts surveyed by Visible Alpha. Earnings per share of $0.53 were in line with forecasts.
Sales at Axon Cloud & Services unit surged 47% to $194.7 million, driven by growing adoption of its software applications. Sensors & Other segment sales gained 28% to $112.4 million on demand for its Axon 4 body camera. TASER sales increased 278% to $197.0 million, fueled by the newest model, the TASER 10.
Axon shares were up 19% in recent trading.
Fortinet Soars to Lead S&P 500 Gainers
3 hr 1 min ago
Fortinet (FTNT) shares surged Wednesday after the cybersecurity solutions provider raised its full-year revenue outlook, as enterprise customers increase spending to protect their data and applications from cyberattacks.
The company’s better-than-expected earnings report looks set create a bullish stock gap on the chart that could lead to a longer-term upside reversal.
Amid the post-earnings rally, Fortinet shares could test important chart levels including $62.50, $69, and $73.50.
Fortinet shares were up 26% in recent trading to their highest level since April.
Read the full technical analysis here.
Airbnb Slides on Weakening U.S. Demand
4 hr 34 min ago
Airbnb (ABNB) shares sank Wednesday, a day after the vacation rental firm missed second-quarter profit forecasts and warned about slowing demand in the U.S.
The company posted earnings per share of $0.86, which came in short of analysts’ estimates, while revenue rose 10.6% to $2.75 billion, which was slightly above expectations.
Airbnb sees current-quarter revenue in the range of $3.67 billion to $3.73 billion, which is on the low end of analysts’ expectations. The company wrote in a letter to shareholders that it expects “a sequential moderation in the year-over-year growth of Nights and Experiences Booked relative to Q2 2024.”
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Airbnb shares were down 13% in mid-morning trading, hitting their lowest level in more than a year.
Super Micro Computer Plunges After Earnings
4 hr 34 min ago
Super Micro Computer (SMCI) shares tumbled Wednesday after the server maker reported earnings that fell short of expectations and issued a light profit forecast, as the cost of transitioning to more expensive AI chips weighed on the bottom line.
The shares broke down below a descending triangle last month, with the price closing beneath the closely watched 200-day moving average in early August.
Super Micro Computer shares may find support at key chart levels including $496, $357, and $260.
The stock was off 14% at $528.33 in recent trading, at its lowest levels since February.
Read our full technical analysis here.
Major Indexes Poised to Open Higher
6 hr 45 min ago
Futures tied to the Dow Jones Industrial Average were up 0.8% about 45 minutes before the opening bell.
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S&P 500 futures were up 1.1%.
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Nasdaq 100 futures were up 1.3%.
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