The market is pricing in a 63% chance that interest rates are cut by 50 basis points
Stocks are scattered this afternoon, as chip stocks struggle and equities tied to oil outperform. The Dow Jones Industrial Average (DJI) earlier touched a new record high, while the Nasdaq Composite (IXIC) is down triple digits, and the S&P 500 Index (SPX) is moderately lower. All eyes are on the Fed's upcoming two-day policy meeting, and the CME Group's Fed Watch tool shows that the market is pricing in a 63% probability that interest rates will be cut by 50 basis points.
Continue reading for more on today's market, including:
- Yelp stock dented by new bearish coverage.
- What's behind this real estate stock's pop?
- Plus, reports signal soft demand for new Apple products; BBWI's bounce; and another bear note dents Micron stock.
Apple Inc (NASDAQ:AAPL) stock is seeing higher-than-usual options volume after analyst reports of early shipping data showed demand for the iPhone 16 Pro models may be softer than expected. So far today, 387,000 calls and 335,000 puts have crossed the tape, which is double the average intraday volume. The most active contract today is the 9/20 220-strike call, followed by the 210-strike put from the same weekly series. Apple stock was last seen 2.7% lower at $216.46, earlier falling as low as $214.21, but still stands 24% higher over the last 12 months.
Bath & Body Works Inc (NYSE:BBWI) stock is near the top of the SPX today, up 37% at $28.23 at last glance.
The retailer last week announced the hiring of 30,000 seasonal workers for the holidays, leading Target (TGT) to follow suit and announce earlier holiday specials. Year to date, Bath & Body Works stock is still down 34.3%.
Micron Technology Inc (NASDAQ:MU) stock is one of the worst performing stocks on the SPX so far today after the stock was hit with another hefty bear note. Morgan Stanley cut its target price on MU by more than half, adjusting down to $40 from $100, which comes just a few sessions after a
double downgrade at Exane BNP Paribas. Earlier trading as low as $86.17, MU was last seen 3.6% lower at $87.90 and close to breaching its 2.8% year-to-date lead.
