Trading conditions remain cautious ahead of tomorrow's Fed decision
The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are hovering near breakeven today, though the tech-heavy Nasdaq Composite (IXIC) is pushing higher. For the most part, traders continue to digest the meeting between President Donald Trump and North Korea's Kim Jong-Un, and are taking a wait-and-see approach ahead of tomorrow's Fed announcement. In the meantime, Wall Street is considering the latest inflation data in the form of the consumer price index (CPI), which rose a year-over-year 2.8% in May -- the biggest increase since February 2012.
Continue reading for more on today's market, including:
- The drug stock "overlooked by investors."
- Newest bull note sends Twitter shares to another high.
- Plus, protective puts popular on Kohl's; Weight Watchers soars (again); and a medical tech stock selling off.
One name seeing heavy options trading today is retail concern Kohl's Corporation (NYSE:KSS). Puts are trading at nearly two times the pace expected, due to interest in the January 2019 70-strike put, where more than 3,100 contracts have crossed, compared to just 525 at the next closest strike. With KSS stock trading at $77.89, putting it up more than 100% year-over-year, it's likely this activity comes from shareholders hedging to protect paper profits.
Weight Watchers International, Inc. (NYSE:WTW) is once again a major winner on the New York Stock Exchange (NYSE), as the stock's epic rally continues. A bull note from J.P. Morgan Securities has WTW shares up 5.2% at $91.38, and they hit an all-time high of $92.92 earlier in the session. The equity's year-over-year gain is north of 237%.
Meanwhile, medical technology stock Stryker Corporation (NYSE:SYK) is a notable loser on the NYSE, as the shares continue to fall following reports of a potential takeover deal with Boston Scientific (BSX). SYK stock is down 3% today at $164.77, putting it on pace for its lowest close since mid-April. Looking back, the 200-day moving average provided strong support during the security's last major pullback in February, but that closely watched trendline sits down at $157.74.
