The DJIA is lower as traders take profits after Wednesday's run to record highs
The Dow Jones Industrial Average (DJIA) is trading lower at midday, as stocks continue to cool following Wednesday's 300-point surge. In the meantime, Wall Street is keeping a close eye on the Snap Inc (NYSE:SNAP) IPO, with the shares opening 39% above their IPO price, and popping 47% out of the gate to trade north of $25. Talk of rising interest rates is picking up, too, with Fed Governor Jerome Powell saying, "the case for a rate increase for March has come together." As the S&P 500 Index (SPX) and Nasdaq Composite (COMP) follow the Dow lower, oil prices are also under pressure, as April-dated crude futures fall 1.7% to $52.95 per barrel.
Continue reading for more on today's market -- and don't miss:
- 3 healthcare stocks getting destroyed.
- Analysts: This chip stock is a "top pick" ahead of the iPhone 8 release.
- Plus, Kite options heat up, Abercrombie & Fitch surprises, and Box forecast disappoints.
Kite Pharma Inc (NASDAQ:KITE) is one stock seeing accelerated options trading today, as the biotech gives back some its weekly gains, following bearish analyst attention and after the firm priced a public stock offering at $75 a share, representing a discount to yesterday's close. The stock was last seen 5.6% lower at $75.20, and options are changing hands at three times the pace expected for this point in the day. The most popular contract is the March 75 put, but it appears sell-to-open activity is taking place here. In other words, speculators are betting on KITE holding above $75 -- the aforementioned price of the offering -- through the close on Friday, March 17, when the contracts expire.
Abercrombie & Fitch Co. (NYSE:ANF) is near the top of the Big Board today, after the retailer announced a surprising rise in same-store sales for its Hollister brand. While the shares are up 11.9% at $13.08, they're struggling to overcome their 80-day moving average. Still, today's pop could be enough bury pre-earnings put buyers.
Among the worst performers on the NYSE is Box Inc (NYSE:BOX), as the content collaboration specialist's current-quarter forecast was weaker than Wall Street was hoping for. At last check, BOX shares were down 8.5% at $16.70, though they're still up 20.5% year-to-date. Plus, Canaccord Genuity was one of three brokerage firms to raise its price target on the stock, setting its mark at $22 -- territory not charted since BOX's first month of trading, in January 2015.
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