Benchmarks Make Moves On Rising Interest Rates

Bond yields are on the rise once again, and the broader market is responding in turn. Investors watched closely as the 10-year Treasury yield jumped up over 1.75% to its highest level since January 2020, while the 30-year Treasury bond climbed above 2.5% for the first time since August of 2019. The Dow Jones Industrial Average (DJI) is up over 165 points midday, once again hitting a record intraday high, as bank stocks enjoy the rate spike. Predictably, the tech-heavy Nasdaq Composite (IXIC) is down triple-digits, while the S&P 500 Index (SPX) sits more modestly in the red midday.

There is some economic data to unpack as well. Initial weekly jobless claims haven't helped sentiment much, coming in at a higher-than-expected 770,000. Meanwhile, the Philadelphia Federal Reserve's manufacturing index read at 51.8, which is much higher than the expected 22 and its highest point in almost 50 years. 

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One stock seeing an unusual amount of options volume today is Upstart Holdings Inc (Nasdaq: UPST). So far, 21,000 calls and 17,000 puts have crossed the tape -- 47 times what's typically seen at this point. New positions are being opened at the very popular March 100 and 135 calls, which expire tomorrow. UPST is up a whopping 82% to trade at $110.72 at last check after the company reported an earnings beat despite lower revenue than anticipated. To follow, Jefferies raised its price target to $81 from $66. Going public in mid-December, the stock is up 205.9% in the last three months, now reaching its highest levels ever. 

One stock surging on the New York Stock Exchange (NYSE) is Williams-Sonoma, Inc. (NYSE: WSM). The stock is up 19% at $162.40 at last check, after the company reported better-than-expected fourth-quarter earnings and revenue. In response, no fewer than eight analysts raised their price targets, with the highest from Telsey Advisory Group and Wedbush, which both listed their estimates to $175. Today's pop has WSM gapping above recent pressure at the $140 level to reach a new record high. 

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Disclaimer: Schaeffer's Investment Research ("SIR" or "we" or "us") is not registered as an investment adviser. SIR relies upon the "publishers' ...

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