The Dow and S&P 500 are hovering around fair value
The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are hovering around fair value this afternoon, while the Nasdaq Composite (IXIC) sports modest losses. This morning's stronger-than-expected retail sales data is weighing on the indexes, after it led traders to consider whether the Federal Reserve will keep interest rates higher for longer. Rising bond yields are also generating headwinds, with the 10-year Treasury yield earlier hitting its highest level since Oct. 6.
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Options bulls are targeting VF Corp (NYSE:VFC), after Engaged Capital built its stake in the company. So far, 25,000 calls have been traded -- eight times the intraday average -- in comparison to 7,541 puts. The October 18 call is the most popular by far, where new positions are being bought to open. At last look, VFC was up 14.1% to trade at $18.47, bouncing off its Oct. 12, 14-year lows. The security is still below a host of key moving averages, including its 140-day moving average, which hasn't been conquered since January 2022.
The New York Stock Exchange's (NYSE) Wyndham Resorts & Hotels Inc (NYSE:WH) is up 10.4% at $76.27 at last check. The security earlier traded as high as $78.48, after a $7.8 billion buyout offer from Choice Hotels (CHH). Since the start of the year, the equity is up 7%.
Netscout Systems Inc (NASDAQ:NTCT) is near the bottom of the Nasdaq today, down 17.1% at $22.88 at last check, after the company lowered its full-year revenue and profit forecast, citing macro headwinds. To follow, RBC slashed its price target to $25 from $34. This bear gap has NTCT trading at three-year lows, down 28.4% in 2023.