All three major indices head for steep weekly losses

Wall Street is looking to end the week on a dismal note, after a warmer than expected period consumer price index (CPI) the May reading sent stocks soaring. The CPI hit its highest level since 1981, rising 8.6% year-on-year – beating expectations – and 6% excluding food and energy prices. The report also sent the 2-year Treasury yield above 2.9%.

In response, the Dow Jones Industrial Average (DJI) lost 700 points halfway through, while the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also swimming in red ink, the latter having fallen by more than 3% this afternoon. All three indices are also heading for steep weekly losses.

Keep reading to learn more about the current market, including:

• Why Goldman Sachs Thinks Netflix Stock is a “sale”.
• Another technological value be affected by a downgrade today.
• Also, AAL puts pop after trial update; COGT clears key trendline; and FULC reaches an all-time high.

There is an unusual amount of options activity around American Airlines Group Inc. (NASDAQ: AAL) today, with bearish volume at twice the intraday average. So far, 61,000 calls and 87,000 puts have been traded. The most popular contract is the August 12 put, followed by the 6/10 16-strike weekly call, with open positions on the latter. AAL was last seen down 4.1% to trade at $14.83, after a US judge ruled that an antitrust lawsuit against the company and its industry peer JetBlue ( JBLU) is expected to move forward, with trial scheduled for September 26. also weighed on travel stocks.

One of the best stocks on the Nasdaq today is Cogent Biosciences Inc (NASDAQ: COGT), last seen up 117.1% at $10.77. The company announced that its investigational drug bezuclastinib has “rapid and robust” efficacy in a recent trial, lowering levels of an enzyme linked to systemic mastocytosis by 50% or more. The stock is now up 15.9% year-to-date, with today’s surge putting COGT on track to close above the 30-day moving average for the first time since the April 22.

Fulcrum Therapeutics Inc (NASDAQ: FULC), meanwhile, is one of the worst performing stocks on the Nasdaq. Safety is down 43.5% to $4.57 last checked, after publishing proof of concept for its FTX-6058 treatment in sickle cell disease, based on data from its Phase 1B trial in Classes. Although the treatment was apparently well tolerated, HC Wainwright still stepped in with a price target reduced from $40 to $20. Shares hit a record low of $3.21 earlier and are now down 74.4% year-to-date.