Dow Drops As Bank Stocks React To Fed Decision

Stocks are mixed midday, as Wall Street reacts to the Federal Reserve's decision not to extend the supplementary leverage ratio for banks. The rule is set to expire at the end of this month. In response, bank stocks are moving lower midday, sending the Dow Jones Industrial Average (DJI) down 250 points at last check. Meanwhile, the S&P 500 Index (SPX) is flat, while the Nasdaq Composite (IXIC) is comfortably higher, though another bounce in bond yields is likely paring tech gains. The 10-year Treasury yield is currently sitting at 1.74%, erasing its earlier decline. Despite several intraday highs this week, it appears all three benchmarks are headed for weekly losses. 

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One stock on the New York Stock Exchange (NYSE) seeing a surge in call volume today is Box Inc (NYSE: BOX). So far, 28,000 calls have crossed the tape, which is seven times what's typically seen at this point. The May 22 and 27 calls are most popular by far, with new positions being opened at both. BOX is up 6.2% to trade at $22.41 at last look, nearing its March 12 two-year high of $23.12. Year-to-date, the stock is up 23.9%. 

One stock soaring on the charts today is ZK International Group Co Ltd (Nasdaq: ZKIN). The equity is up 41.8% at $12.44 at last check, continuing this week's climb after announcing plans to launch an NFT exchange through its subsidiary xSigma Corporation. Now trading at a fresh three-year high, ZKIN is up 369.8% year-to-date. 

On the other hand, Praxis Decision Medicines Inc (Nasdaq: PRAX) is down 10.4% to trade at $34.64, after the company's fourth-quarter earnings report. The biotech name announced losses of 87 cents per share, which is wider than the 37 cent loss anticipated by analysts, while its revenue fell in line with expectations. PRAX, which has been publicly traded since October, has been faltering from its early-January highs. An attempt at a rebound was also rejected by the 40- and 60-day moving averages at the $50 level. Year-to-date, the security is down 36.9%. 

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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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