Hot Stocks: PTON, TASK plunge; Chinese internet stocks rise; LAZR partnership; BHLB climbs on earnings
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A late sell-off left the major U.S. stock indices lower yet again on Thursday, with the S&P 500 falling more than 1% and notching its fourth loss in the last five sessions. Worries about an aggressive Federal Reserve have spurred selling early in 2022, with the S&P falling to its lowest level since October.

While most of the market stumbled again during the session, one of the most high-profile losers in 2021 had a relatively strong day. Chinese internet stocks received a boost from lower interest rates in that country, giving a lift to names like Alibaba (NYSE:BABA), JD.com (NASDAQ:JD) and Baidu (NASDAQ:BIDU).
Luminar (NASDAQ:LAZR) was another winner on the session, posting a double-digit percentage gain on a partnership with a major automaker.
Meanwhile, on a weak session that saw few stocks able to secure new 52-week highs, Berkshire Hills Bancorp (NYSE:BHLB) managed to establish a fresh intraday 52-week peak, thanks to strong earnings news.
Turning to some of the day's leaders to the downside, TaskUs (NASDAQ:TASK) plunged on a hedge fund's short report. At the same time, one-time high-flier Peloton (NASDAQ:PTON) experienced yet another leg lower, setting another in a series of 52-week lows it has seen over the past several months.

Sector In Focus

News of a dovish move by the Chinese central bank inspired buying in shares of Chinese companies listed in the U.S. Internet stocks from the country fared best, with gains in Alibaba (BABA), JD.com (JD) and Baidu (BIDU).
The People's Bank of China cut the rate on its one-year loan prime rate to 3.7%. This marked the second rate reduction this month, a move meant to stimulate the country's sluggish economy.
On the news, JD rallied 6.5%, one of the best performances among the major Chinese internet names. BIDU advanced about 5%, while BABA climbed nearly 3%.

Standout Gainer


A partnership with a major automaker sparked a rally in shares of Luminar (LAZR), a maker of autonomous driving technology. The stock climbed almost 12% on the partnership with Mercedes-Benz, rebounding from a low set the previous session.
Under the deal, Mercedes-Benz will use LAZR's Iris lidar technology in the automated driving features on its passenger cars.
LAZR advanced $1.55 to close the session at $15. Longer-term, shares plunged in the first half of 2021, coming off a 52-week high of $40.98 set early in the year. The stock has bounced off a 52-week low of $13.42 recorded Wednesday.

Standout Loser

TaskUs (TASK) plunged 15% following a short call from hedge fund Spruce Point.
Spruce Point argued that the digital outsourcing firm could see a decline of up to 50%, citing, in part, "financial strain" with the firm's relationship with Facebook. The report also accused TASK of "exaggerated and inflated business claims."
TASK finished the day at $30.13, losing $5.46 on the session.
TASK came public in the middle of last year in an IPO priced at $23 per share. Shares rocketed to a 52-week high of $85.49 by September but have seen intermittent selling pressure since.

Notable New High


The release of earnings news gave a 2% lift to shares of Berkshire Hills Bancorp (BHLB), sending the stock to a fresh intraday 52-week high, although it was unable to set a new closing peak.
The company reported adjusted non-GAAP EPS of $0.42, a 50% improvement from last year. Revenue slipped 8% from last year, but non-interest income posted an 18% increase, not including insurance operations sold in 2021.
BHLB rose 67 cents to finish the session at $30.37. Earlier in the day, the stock set an intraday 52-week high of $31.78 but moderated its gains before the close. The stock finished off its closing peak of $31.29, set on Jan. 14.


Notable New Low

Peloton Interactive (PTON) crashed 24% on reports that the company is halting production of bikes and treadmills in response to weak demand for at-home workout equipment. The retreat reignited an investor evacuation that began in 2021, with the stock tumbling to yet another new 52-week low.
CNBC reported that a memo seen by the news outlet referenced a "significant reduction" in global demand, leading to a two-month production halt. The memo cited heightened price sensitivity from consumers and increased competition for the waning desire for exercise bikes and treadmills.
PTON bounced around near the unchanged mark through the morning and into the early afternoon. Shares entered a tailspin as CNBC broke its report around 12:45 p.m. ET, eventually reaching an intraday 52-week low of $23.25.
The stock cut its losses slightly by the close, ending the day at $24.22. This represented a decline of $7.62 on the session.
PTON, a one-time pandemic darling, reached levels above $160 in late 2020, with a 52-week high of $166.57. The stock has lost about 85% of its value over the past year.
For more of the day's best- and worst-performing stocks, turn to SA's On The Move section.