Stocks are rallying this afternoon, as investors prepare for the Federal Reserve's interest rate decision, which is due out tomorrow. All signs point toward the central bank raising rates by 50 basis points. Nevertheless, the Dow Jones Industrial Average (DJI) is 157 points higher at midday, while both the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also trading in the black, as the 10-year Treasury yield cools from yesterday's three-year highs. Investors are also keeping an eye on corporate earnings, with reports from Airbnb (ABNB) and Starbucks (SBUX) to come after today's closing bell.

Chegg Inc (NYSE: CHGG) is seeing unusual activity in its options pits today. So far, 16,000 calls and 12,000 puts have exchanged hands, which is 28 times the intraday average. Most popular is the May 17.50 call, followed by the 15 put in the same monthly series, with positions being opened at both. The shares were last seen down 29.7% at $17.51 after the equity received a downgrade from Piper Sandler to "neutral" from "overweight," as well as five price-target cuts. The bear notes came in response to weak first-quarter results, as well as a disappointing annual guidance. The stock earlier hit a roughly four-year low of $15.77 and is down 78.7% year-over-year.

Near the top of the New York Stock Exchange (NYSE) is Catalent Inc (NYSE: CTLT), last seen up 12.7% at $101.57. Today's bull gap came after the company posted better-than-expected fiscal third-quarter earnings of $1.04 per share, as well as a revenue win. The shares are now trading at their highest level since early April and breaking through the 40-day moving average. Year-to-date, though, Catalent stock remains down 19.5%.

One of the worst stocks on the NYSE today is Rockwell Automation (NYSE: ROK), down 13.2% at $217.09 at last check. In addition to its fiscal second-quarter earnings coming in below Wall Street's estimates, the company cut its annual revenue and profit forecasts amid Covid-19 shutdowns in China, the Russia-Ukraine war, and supply chain pressures. ROK earlier fell to a roughly two-year low of $210.62 and is down 37.8% in 2022.