Profit taking and rising bond yields are weighing on stocks today
Stocks are stumbling out of the gate this week. The Dow Jones Industrial Average (DJI) is down over 300 points at last check, while the the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) also sit firmly in the red, the latter poised to snap a three-day win streak.
Profit-taking seems to be the main culprit today, especially ahead of another loaded slate of earnings reports this week. Investors are also monitoring a 10-year Treasury yield up near 4.2%, while the Cboe Volatility Index (VIX) is poised to rise for the first time in four sessions.
Continue reading for more on today's market, including:
- Healthcare sector could soon see a shake-up.
- Warby Parker stock has short squeeze potential.
- Plus, Kraft call explosion; JNJ spinoff gets activist stake; and homebuilders cool off.
Kraft Heinz Co (NASDAQ:KHC) stock is seeing a serious uptick in options volume today. At last check, over 129,000 calls have changed hands, volume that's 22 times the average intraday amount and 64 times the number of puts exchanged. Nearly all of this activity is focused around the weekly 10/25 37- and 36.50-strike calls, with new positions being bought to open at both. KHC is down 0.8% to trade at $35.69 today, though there's no specific catalyst for the call surge. Year-over-year, the shares are 14% higher.
Johnson & Johnson (JNJ) spinoff Kenvue Inc (NYSE:KVUE) is near the top of the Nasdaq today, up 6.5% to trade at $23.15. The Wall Street Journal reported activist investor firm Starboard Value reportedly took a large stake in the consumer healthcare company, though specifics were not released. KVUE is within a chip shot of its Sept. 16 13-month high of $23.55, and is now up 27% in the last three months.
Lennar Corp (NYSE:LEN) stock is on the other end of the spectrum, last seen down 3.4% to trade at $182.42, as homebuilding stocks struggle today amid rising bond yields and concerns over interest rates. LEN is still up 22.4% in 2024, and today's pullback has found support at its 50-day moving average.
