Schaeffer's Trading Floor Blog

Stocks On the Move: JPMorgan Chase & Co., Lexmark International Inc, and Yelp Inc

JPM, LXK, and YELP are moving sharply in Tuesday's trading

by 7/15/2014 12:59 PM
Stocks quoted in this article:

Around midday, three of the top market movers are financial titan JPMorgan Chase & Co. (NYSE:JPM), hardware developer Lexmark International Inc (NYSE:LXK), and business review site Yelp Inc (NYSE:YELP). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • JPM has tacked on nearly 4% today to trade at $58.49, following this morning's second-quarter earnings beat. Still, the shares are sitting at about breakeven on a year-to-date basis -- and thus underperforming the broader S&P 500 Index (SPX). As such, JPMorgan Chase & Co.'s options pits are filled with bears. Specifically, during the past 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has racked up a put/call volume ratio of 0.66 -- higher than 84% of all other readings taken in the last 12 months.

  • LXK is getting hammered following this morning's downgrade to "underperform" from "market perform" at Bernstein, with the brokerage firm citing "an uneven track record of delivering consistent execution/results." At last check, the equity was off nearly 6% at $46.56 -- though it remains up more than 31% in 2014. On the options front, short-term traders have rarely preferred Lexmark International Inc puts (relative to calls) more strongly than they do now. Specifically, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.17 ranks in the 89th percentile of its annual range. Looking ahead, LXK will step into the earnings confessional next Tuesday morning, ahead of the bell; the Street is calling for a per-share profit of 93 cents, or 2 cents lower than the company's year-ago results.

  • Finally, YELP is reeling on this morning's comments from Federal Reserve Chair Janet Yellen, who identified the social media sector as one in which valuation metrics "appear substantially stretched." Specifically, Yelp Inc shares are down 4.7% to hover at $67.77. In addition, with the move lower, the security is now sitting below breakeven year-to-date. Among analysts, however, expectations remain high. Twenty out of the 26 brokerage firms covering YELP have doled out "buy" or "strong buy" ratings, compared to six "holds" and not a single "sell" opinion. Plus, the shares' consensus 12-month price target rests at a lofty $83.61. Going forward, YELP may be vulnerable to potential bearish brokerage notes, which could pressure the stock further south.

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