In case you missed it, tomorrow is "Prime Day" -- and Amazon.com, Inc. (NASDAQ:AMZN) is pulling out all the stops for members of its subscription service, to celebrate the e-tailer's 20th anniversary. In fact, the company promises that the one-day shopping event will offer "more deals than Black Friday," and they've already published a partial list of discounted products. Among them, AMZN's Fire TV Stick will be $15 off and its Kindle tablet will be $30 off.

Not to be outdone, rival Wal-Mart Stores, Inc. (NYSE:WMT) announced its own sale, featuring 2,000 "rollbacks" for online customers. The retailer also said it will offer "special atomic details," but has yet to provide specifics. Suffice it to say, competition between the two companies is growing to be fierce.

Turning to the charts, AMZN has been an all-star -- hitting a record high of $464.99 earlier today, after UBS upgraded the stock to "buy" from "neutral" and raised its price-target hike to $550 from $450, citing Prime subscriber growth and fulfillment strength. The shares were last seen up 1.6% at $463.04. In fact, since the year kicked off, the shares have soared over 49%.

However, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have exhibited skepticism. The stock's 10-day put/call volume ratio of 1.12 ranks in the bearishly skewed 92nd annual percentile. Echoing this, AMZN's Schaeffer's put/call open interest ratio of 1.14 outranks nearly three-quarters of comparable readings from the past year. A capitulation among these doubters could lead to future gains for Amazon.com, Inc. (NASDAQ:AMZN).

Meanwhile, WMT has been muscling its way higher since hitting a two-year low of $70.36 on July 1, up close to 4.5% at $73.52. What's more, the stock appears to be bouncing from its 50-month moving average, which could set the stage for additional upside -- especially if analysts start to raise their outlooks. Currently, 17 of 21 brokerages rate Wal-Mart Stores, Inc. (NYSE:WMT) a "hold" or worse.

Analysts are weighing in today on solar issue SunPower Corporation (NASDAQ:SPWR), drugmaker Celyad SA (ADR) (NASDAQ:CYAD), and tech stock EMC Corporation (NYSE:EMC). Here's a quick roundup of today's brokerage notes on SPWR, CYAD, and EMC.

• SPWR has soared 4.4% to trade at $28.15, after J.P. Morgan Securities resumed coverage on the stock with an "overweight" rating and $42 price target -- territory not charted since June 2014. At the same time, however, Baird cut its price target by $4 to $44. Technically speaking, SunPower Corporation sold off in late June and early July, but since hitting its most recent low of $25.50, has bounced over 10%. If this upside momentum continues, it could turn up the heat on short sellers -- 12.2% of SPWR's float is sold short, representing more than a week's worth of pent-up buying power, at typical volumes.


• CYAD is blowing up after UBS initiated coverage on the shares with a "buy" opinion and $82 price target -- a record high -- due to what they describe as "meaningful benefit" in the advancement of the company's heart failure treatment, C-Cure. At last check, the stock was 10% higher at $60.18 -- though, this is still lower than its IPO price of $68.56 from late June.


• OTR Global downgraded EMC to a "mixed" rating from "positive," while Summit Research lowered its assessment to "hold" from "buy," and slashed its price target to $26 from $34. The bearish attention has the shares off 2.1% at midday to trade at $25.41. Longer term, EMC Corporation has shed over 14% year-to-date -- and options traders are rolling the dice on more downside. During the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open nearly three puts for every call. EMC's resultant put/call volume ratio of 2.87 rests just 4 percentage points from a 52-week peak.

Twitter Inc (NYSE:TWTR) popped 8.5% around midday, amid headlines the microblogging site had received a $31 billion buyout bid. The news story -- which was initially attributed to Bloomberg -- has since been proven false, and originated from a website designed to closely resemble Bloomberg. The stock is still riding high -- up 3.3% at $36.96 -- and option traders are betting on even more upside in the near term.

Taking a quick step back, TWTR calls are trading at almost four times the average intraday rate -- and are outpacing puts by a more than 3-to-1 ratio. In fact, nine of TWTR's 10 most active options are calls. Receiving notable attention is the weekly 7/24 38-strike call, where it seems safe to assume new positions are being purchased for a volume-weighted average price (VWAP) of $0.65.

Based on this average entry price, breakeven for the call buyers is $38.65 (strike plus VWAP). Profit will accumulate north of here, while losses are limited to 100% of the premium paid, should TWTR be sitting south of the strike when the weekly series expires at next Friday's close.

Widening the sentiment scope reveals speculators have been initiating long calls over puts at an accelerated clip in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TWTR's 50-day call/put volume ratio of 2.67 ranks in the 74th annual percentile.

Echoing this call-skewed bias is TWTR's front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR) of 0.51. Simply stated, near-the-money call open interest almost doubles put open interest among options residing in the July series -- which expires at week's end.

Specifically, speculators have set their sights on the July 37 call, where 28,205 contracts are currently in residence -- peak call open interest in the front-month series. According to the ISE, CBOE, and PHLX, more than 22,300 calls have been bought to open here since May 18, meaning traders have been rolling the dice on Twitter Inc (NYSE:TWTR) to settle north of $37 at this Friday's close. Regardless of where the stock settles the week, the most the option buyers stand to lose is the initial cash outlay.

Google Inc (NASDAQ:GOOGL) is flying this afternoon -- up 2.9% -- after the tech titan unveiled how the company is performing more efficiently, including slowing its pace of hiring. Also helping boost the stock is a price-target hike to $710 from $614 at B. Riley -- territory yet to be charted.

Today's positive price action has sparked a rush of activity in the equity's options pits, with overall volume running a two times the intraday pace. What's more, front-month contracts are in high demand, as speculators scramble to place bets on the equity's end-of-week trajectory -- a time frame which includes GOOGL's second-quarter earnings report, due after Thursday's close.

GOOGL's July 600 call has seen the most action, and it appears new positions are possibly being purchased for a volume-weighted average price (VWAP) of $4.55. If traders are indeed buying the calls to open, the goal is for the stock to rally north of $604.55 (strike plus VWAP) by this Friday's close, when the series expires.

Put players, meanwhile, have set their sights on the July 565 strike, where buy-to-open activity has been detected. The VWAP for the out-of-the-money put is $4.28, making breakeven $560.72 (strike less VWAP). Regardless of where the stock settles the week, though, the most either group of option buyers has on the line is the initial premium paid.

Outside of the options pits, the brokerage bunch has taken an upbeat approach to GOOGL. Of the 27 analysts covering the shares, 22 maintain a "buy" or better rating, with not a single "sell" to be found. Plus, the average 12-month price target of $638.90 represents an expected move to record highs.

Technically speaking, the shares have tacked on 11% year-to-date, but recent rally attempts have stalled out in the $590 region. Today, in fact, Google Inc (NASDAQ:GOOGL) topped out at an intraday peak of $589.71, and was last seen lingering near $588.50.

Asian bourses were a mixed bag today. China's Shanghai Composite fell for a second straight session, dropping 3% on news the country posted a better-than-anticipated gross domestic product (GDP) for the second quarter. Following the mainland's lead, Hong Kong's Hang Seng gave back 0.3%. Elsewhere, however, stocks managed modest gains. South Korea's Kospi picked up 0.7% amid strength in construction names, while Japan's Nikkei rose 0.4% as the Bank of Japan voted to stand pat on monetary policy.

In Europe, markets have edged higher ahead of the Greek parliament vote, with lawmakers weighing in on a slate of budget cuts and spending reforms necessary to secure bailout funds. In a Tuesday speech, Greek Prime Minister Alexis Tsipras spoke out in favor of the deal with eurozone lenders. At last check, London's FTSE 100 had added 0.3%, while France's CAC 40 and Germany's DAX had added 0.2% each. 

Analysts are weighing in today on online retailer Amazon.com, Inc. (NASDAQ:AMZN), social networking site LinkedIn Corp (NYSE:LNKD), and Internet auction house eBay Inc (NASDAQ:EBAY). Here's a quick roundup of today's bullish brokerage notes on AMZN, LNKD, and EBAY.

• AMZN has gotten off on the right foot this "Prime Day" morning, receiving a $55 price-target hike to $505 (uncharted territory for the stock) from Monness Crespi Hardt. The bullish note could allow the shares to add to their year-to-date lead of 50%, as of Tuesday's close at $465.57. There's potential for more positive analyst attention, too. Thirteen of 28 brokerages still consider Amazon.com, Inc. worthy of just a "hold" rating. Plus, the stock's consensus 12-month price target of $473.53 stands at a slim 1.7% premium to current trading levels.


• Barclays upgraded its opinion of LNKD to "overweight" from "equal weight," and raised its price target to $250 from $225, commenting that the issues that plagued the company's first-quarter results and full-year outlook are "transitory not structural." Ahead of the open, the shares -- which have lost nearly 7% in 2015, and have been churning in the $205-$220 range since early June -- are up 2.6%. Meanwhile, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have grown bullish in recent months. LinkedIn Corp's 50-day call/put volume ratio of 1.47 ranks just 11 percentage points from an annual high. In other words, speculators have rarely bought to open calls over puts at a more rapid rate.


• EBAY will be replaced on the S&P 100 Index (OEX) this Friday by the company it's spinning off -- Paypal Holdings Inc (NASDAQ:PYPLV). Ahead of this event -- as well as tomorrow morning's eBay Inc earnings report -- Benchmark upped its price target on the security to $71. The positive note is well-deserved, considering the stock touched a record high of $64.29 yesterday, before settling at $63.59 -- up more than 13% on the year. Bullish betting has been intense on the ISE, CBOE, and PHLX, as well. EBAY's 10-day call/put volume ratio of 4.90 indicates nearly five calls have been bought to open for every put in recent weeks. What's more, this ratio ranks in the 93rd percentile of its 52-week range. Ahead of the open, the shares are pointed 1.2% north.

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U.S. stocks are sitting higher in pre-market action, as traders await a key Greek parliament vote and testimony from Fed Chair Janet Yellen. In company news, today's stocks to watch include biotech Celgene Corporation (NASDAQ:CELG), clothier Guess?, Inc. (NYSE:GES), and pediatric nutrition company Mead Johnson Nutrition CO (NYSE:MJN).

• CELG is poised to jump 8.9% -- and explore record highs -- out of the gate, after the firm said it'll buy Receptos Inc (NASDAQ:RCPT) for $7.32 billion in cash, or $232 per share, a 12% premium to RCPT's close of $207.18 on Tuesday. Analysts are cheering the M&A news, with Celgene Corporation scoring no fewer than eight price-target hikes. Among them, Baird lifted its target to $162 from $139, and Deutsche Bank upped its target to $175 from $160; both brokerage firms underscored "buy" or equivalent ratings. CELG already sports 12 "buy" or better endorsements, compared to three lukewarm "holds." At Tuesday's close, the stock sat at $122.85, boasting a year-to-date gain of 9.8%.


• GES is headed for a 6.8% surge, after the company said Victor Herrero -- a former Inditex Group exec -- will replace Paul Marciano as CEO next month. Subsequently, GES earned an upgrade to "hold" from "sell" at Evercore ISI, and a price-target hike to $24 at Wunderlich. The past year has been a struggle for Guess?, Inc., with the shares dropping 22.1% to sit at $21.16. However, since bottoming at $16.61 in mid-March, the stock has muscled higher, and is on pace to end the month atop its 10-month moving average -- and in positive year-to-date territory -- for the first time since late 2013. Should GES stage a notable rebound, short sellers could get spooked. Short interest accounts for almost 21% of the stock's total available float, representing nearly 13 sessions' worth of pent-up buying demand, at the equity's average pace of trading.


• Finally, MJN is bracing for a 4.9% drop, after the company slashed its 2015 earnings and revenue forecast, citing a cooling Chinese economy. Mead Johnson Nutrition CO got almost one-third of its sales from China in 2014. The stock touched an annual low of $87.88 yesterday, before settling at $88.13, and today's expected plunge will put the shares deeper in the red. Amid the security's technical woes, short sellers have been piling on. Short interest skyrocketed by 37.5% during the past two reporting periods, and now accounts for almost 3.7 million MJN shares.

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Analysts are weighing in today on mining company Barrick Gold Corporation (USA) (NYSE:ABX), Internet stock Yahoo! Inc. (NASDAQ:YHOO), and Pizza Hut parent Yum! Brands, Inc. (NYSE:YUM). Here's a quick roundup of today's bearish brokerage notes on ABX, YHOO, and YUM.

• ABX is off 0.5% this morning at $9.84, following a price-target cut to C$15.65 from C$15.75 at Haywood. This is business as usual for the shares, which have charted a steady path lower -- pressured by their 10-day moving average -- since mid-May. In fact, since touching its most recent peak of $13.60 on May 14, Barrick Gold Corporation has shed roughly 28%. Nevertheless, option traders are counting on a comeback. During the last 50 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 7.62 calls for every put -- a ratio that ranks a mere 2 percentage points from a 12-month peak.


• YHOO, which will report earnings after the close next Tuesday, July 21, received a price-target reduction to $50 from $59 at SunTrust Robinson. As such, the shares are down 0.6% out of the gate at $38.40, bringing their year-to-date deficit to 24%. Amid this prolonged downtrend, option traders have been upping the bearish ante. Yahoo! Inc.'s 50-day ISE/CBOE/PHLX put/call volume ratio of 0.50 outstrips all but 3% of readings taken in the past year. In other words, traders have been buying to open YHOO puts over calls at a breakneck pace.


• In the wake of a poorly received earnings report, YUM saw its price target trimmed by $2 to $103 at J.P. Morgan Securities -- though this still represents all-time-high territory for the shares. Collectively, these developments have the stock off 2% out of the gate at $89.74 -- though this move is less than the market had priced into short-term options. Nevertheless, Yum! Brands, Inc. is still sitting on a year-to-date advance of more than 23%. Taking a step back, the brokerage bunch is fairly skeptical of the equity, with nearly 56% doling out tepid "hold" ratings. Also, YUM's consensus 12-month price target of $93.47 is just a chip-shot away from the stock's current perch.

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By Howard Schneider and Michael Flaherty

WASHINGTON (Reuters) - Federal Reserve Chair Janet Yellen said on Wednesday the U.S. central bank remains on track to raise interest rates this year, with labor markets expected to steadily improve and turmoil abroad unlikely to throw the U.S. economy off track.

"If the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate," Yellen said in testimony prepared for the U.S. House of Representatives Financial Services Committee, affirming the view of a central bank prepared to gradually raise rates after more than six years at a near-zero level.

Labor markets are "not yet consistent with maximum employment," she said. "Greece remains difficult. And China continues to grapple with the challenges posed by high debt, weak property markets, and volatile financial conditions."

Federal Reserve Board Chair Janet Yellen arrives to testify before a House Financial Services committee hearing on "Monetary Policy and the State of the Economy" on Capitol Hill in Washington July 15, 2015. REUTERS/Yuri Gripas

Still, "looking forward, prospects are favorable for further improvement in the U.S. labor market and the economy more broadly."

Her written statement to the committee is to be followed by a hearing later Wednesday morning. The statement largely tracked her recent public comments, as well as the most recent policy statement by the Fed's policy-setting committee.

She did, however, include an explicit defense of the Fed's "transparency and accountability," detailing the central bank's flow of information to financial markets and its press conference and audit schedules as evidence it does not need further congressional oversight.

She will likely be questioned on that very point from members of the Republican-led House committee. House members were critical of the Fed at her previous appearance before them in February. In the intervening months some lawmakers have expressed frustration over the fact that the Fed has not released all of the material Congress has requested as part of an investigation of the possible leak of information from the central bank to an economic consulting company in 2012.

Yellen has said the Fed had declined to send the information because a separate Justice Department probe is ongoing.

Yellen's statement was submitted to the committee along with a lengthier report from the Fed board on the state of the economy and financial markets.

That report included more detail on what the United States faces as it tries to go its own way in a weakened world economy. The expectation that the Fed will diverge from Europe, Japan and other central banks and begin raising rates has pushed up the value of the dollar, and driven down exports and U.S. growth, making the Fed's outlook less certain, the report said.

The report also noted concerns about a possible liquidity crisis if bond markets become stressed, an issue some investors and market analysts have cited as a potential source of future trouble. The staff report said that while there is some evidence bond markets are not as "deep" or liquid as they used to be, there is not convincing evidence of "notable deteriorations."

 

(Reporting by Howard Schneider; Editing by Paul Simao)

Analysts are weighing in today on chipmaker QUALCOMM, Inc. (NASDAQ:QCOM), biopharmaceutical firm PTC Therapeutics, Inc. (NASDAQ:PTCT), and Chinese search engine Baidu Inc (ADR) (NASDAQ:BIDU). Here's a quick roundup of today's brokerage notes on QCOM, PTCT, and BIDU.

• QCOM was started with a "neutral" rating and $68 price target at Mizuho. In the wake of this tepid note, the stock has advanced 0.2% to trade at $64.09, but remains almost 14% lower in 2015. Not surprisingly, options traders have been rolling the dice on extended losses for QUALCOMM, Inc. The security has accrued a 10-day put/call volume ratio of 1.17 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), with long puts outweighing long calls. What's more, this ratio ranks just 6 percentage points from a 12-month peak. Looking ahead, QCOM will report earnings one week from tonight.


• A number of drugmakers are breaking out today, and PTCT is no exception. Specifically, the shares are up 15% at $56.29 -- and back in positive year-to-date territory -- after being upgraded to "overweight" from "neutral" at J.P. Morgan Securities. Specifically, the brokerage firm gave PTC Therapeutics, Inc.'s late-stage study on its muscular dystrophy treatment, Translarna, an 80% chance of success. The gap higher -- which has PTCT above its 40-day moving average for the first time since late April -- may be putting the hurt on short sellers. Nearly 12% of the stock's float is sold short -- equaling more than one week's worth of trading activity, at typical volumes.


• BIDU has retreated 1% to trade at $189.30, following a $22 price-target reduction to $225 at BofA-Merrill Lynch. These technical struggles are consistent with the equity's track record, as the shares have given back roughly 17% of their value in 2015. Shockingly, eight of 11 analysts still maintain a "strong buy" rating on Baidu Inc. On the other hand, option traders aren't nearly so optimistic. BIDU's 50-day ISE/CBOE/PHLX put/call volume ratio of 0.71 rests just 6 percentage points from an annual peak. In other words, speculators have been scooping up puts over calls at an accelerated clip in recent months.

During his speech at the Delivering Alpha Conference today, activist investor Bill Ackman warned investors about the threat China poses to global markets. "If you look at the Chinese financial system, you look at shadow banking, you look at the amount of leverage, you look at how desperately they worked to keep the stock market up. It looks worse to me than 2007 in the U.S.," Ackman said. His remarks arrive as Chinese markets have resumed their downward trend in recent sessions, with a number of U.S.-listed stocks getting hammered -- including Qihoo 360 Technology Co Ltd (NYSE:QIHU), SINA Corp (NASDAQ:SINA), Weibo Corp (ADR) (NASDAQ:WB), and Youku Tudou Inc (ADR) (NYSE:YOKU).

Cybersecurity firm QIHU is 4.6% lower at $61.06, with the shares on track to close below their 40-week moving average for the first time in seven weeks. This is bad news for recent call buyers, who may be betting on the firm to go private. Specifically, the stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 7.12  ranks in the 95th percentile of its annual range -- suggesting near-extreme levels of optimism toward Qihoo 360 Technology Co Ltd.

Meanwhile, online media firm SINA has plunged 5% to trade at $42.83. In fact, since touching an annual high of $61.25 in mid-June, the shares have lost 30%. Option buyers are rolling the dice on additional downside, too. SINA Corp's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.49 rests just 8 percentage points from a 52-week peak.

Social media stock WB is also down 5%, hovering near $14.20 -- and back in the red on a year-to-date basis. In recent sessions, the shares have faced overhead resistance at their rapidly declining 10-day moving average. However, option traders are counting on a bounce, buying to open more than eight calls for every put over the last 10 sessions at the ISE, CBOE, and PHLX. Specifically, Weibo Corp's 10-day call/put volume ratio of 8.55 outranks 71% of comparable readings from the previous year.

Finally, Internet TV firm YOKU is staring at an intraday deficit of 6.1% at $19.38, pressured lower by its descending 10-day moving average. Since hitting a 52-week high of $31.50 in early June, the stock has surrendered 38.5% of its value. This is music to the ears of recent put buyers -- of which there have been many. During the last 10 weeks at the ISE, CBOE, and PHLX, Youku Tudou Inc has amassed a put/call volume ratio of 0.97 -- topping all but 16% of readings recorded in the past 12 months.

The major market indexes are looking to extend their winning streaks, though upside momentum is relatively muted compared to the big gains of the past few days. However, one sector that's standing out -- again -- is biotech, with the iShares Nasdaq Biotechnology ETF (IBB) assailing new heights, and a number of drugmakers pacing the Nasdaq leaders. 

IBB was last seen 1.4% higher at $393.27, and earlier notched a record high of $396.94. In the options pits, calls are crossing the tape at twice the average daily pace, with potential buy-to-open action spotted at the July 392.50-, 395-, 397.50-, and 400-strike calls. By purchasing the calls to open, the buyers expect IBB to extend its upward momentum through the end of the week, which represents' the contracts' lifetime.

Digging deeper into the outperformers, PTC Therapeutics, Inc. (NASDAQ:PTCT) is up 7 points, or 14.3%, thanks to a nod from J.P. Morgan Securities. In the same vein, Zogenix, Inc. (NASDAQ:ZGNX) is 2.3 points, or 12.8%, higher -- and earlier hit an annual high of $20.47 -- after a price-target hike to $28 from $20 at Brean Capital. The brokerage firm also waxed optimistic on the company's experimental drug for Dravet syndrome.

Arguably the biggest story of the biotech world today, however, belongs to Celgene Corporation (NASDAQ:CELG) -- up 10.1 points, or 8.2%, and fresh off an all-time peak of $135.98, on news of its $7.3 billion purchase of Receptos Inc (NASDAQ:RCPT).

Enjoying the ride are Celldex Therapeutics, Inc. (NASDAQ:CLDX) and OHR Pharmaceutical Inc (NASDAQ:OHRP). The former is up 1.1 points, or 4.1%, to wink at $27.18, and the latter has added 0.7 point, or 21.5%, to hang just south of $4, extending its data-induced surge sparked earlier this week. Likewise, Esperion Therapeutics Inc (NASDAQ:ESPR) has surged 4.2 points, or 4.6%, to dock at $95.82.