Asian markets traded lower today, led by a bloodbath for Chinese stocks. Specifically, the Shanghai Composite took an 8.5% nosedive, while Hong Kong's Hang Seng lost 3.1%. Ongoing weakness in commodities contributed to the sell-off, as did reports that the government is tapping the brakes on its market-stabilizing efforts. Also contributing to the slide was Wall Street's drop on Friday, and disappointing figures on China's industrial profits. Overall, Shanghai's main bourse suffered its biggest single-day decline since February 2007. Elsewhere in Asia, Japan's Nikkei closed 1% lower in the face of a stronger yen, and South Korea's Kospi dropped 0.4%. 

In Europe, stocks are taking a cue from their Asian counterparts, and indexes across the board are moving lower. Caution ahead of this week's U.S. Federal Open Market Committee (FOMC) policy-setting meeting is also contributing to the risk-off attitude. At last check, Germany's DAX and France's CAC 40 were each 1.6% lower. London's FTSE 100, meanwhile, is off 0.4%. 

Analysts are weighing in today on social network Facebook Inc (NASDAQ:FB), chip concern QUALCOMM, Inc. (NASDAQ:QCOM), and drugmaker Regeneron Pharmaceuticals Inc (NASDAQ:REGN). Here's a quick roundup of today's bullish brokerage notes on FB, QCOM, and REGN.

• FB, which is set to report earnings Wednesday evening, announced plans over the weekend to expand its Internet.org initiative in India. This morning, the stock is on the receiving end of price-target hikes from Cowen and Company (to $110), SunTrust Robinson (to $125), and Raymond James (to $110). The bullish notes are well-deserved, considering Facebook Inc shares have shot up more than 24% year-to-date to trade at $96.95, and last week touched a record high of $99.24 following a prior round of positive analyst attention. Option traders, too, expect more upside from FB. During the last two weeks across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity has amassed a call/put volume ratio of 3.16, which ranks in the 97th percentile of its annual range.


• Amid news that QCOM has appointed a new president for its India-based business, Morgan Stanley upgraded its rating on the stock to "overweight" from "equal weight." The bullish outlook is curious, given the security's 17% year-to-date deficit at $61.64 -- as well as its two-year low of $60.83, touched last Thursday on the heels of lackluster guidance. In fact, unless it reverses its technical trajectory, QUALCOMM, Inc. looks vulnerable to future downgrades and/or price-target cuts. Fourteen of 24 analysts currently rate the underperformer a "buy" or better, and its consensus 12-month price target of $71.90 stands at a 16.7% premium to Friday's close.


• REGN saw its price target raised at RBC (to $570), Jefferies (to $502), and BMO (to $494). On the charts, the stock has been a beast, surging almost 79% year-over-year to rest at $541.85, benefiting from consistent support atop its 10-week moving average. Option traders aren't sold on Regeneron Pharmaceuticals Inc, though. The stock's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.51 ranks above 90% of comparable readings from the previous year. Echoing this, REGN's Schaeffer's put/call open interest ratio (SOIR) of 1.35 sits in the 73rd percentile of its annual range. A reversal in this negative sentiment could spark a move higher. One possible catalyst could be the company's upcoming earnings report, due out the morning of Tuesday, Aug. 4.

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U.S. stocks are set to start the week on a rough note, after China's Shanghai Composite plunged 8.5% -- turning in its worst daily performance since 2007. In company news, today's stocks to watch include pharmaceutical company Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), Standard & Poor's parent McGraw Hill Financial Inc (NYSE:MHFI), and Chinese search giant Sohu.com Inc (NASDAQ:SOHU).

• TEVA is making news this morning, announcing that it has agreed to purchase Allergan PLC's (NYSE:AGN) generic drug business for $40.5 billion in cash and stock. As a result of this deal, Teva Pharmaceutical Industries Ltd (ADR) is dropping its $40 billion hostile takeover bid for Mylan NV (NASDAQ:MYL). This news is going over well, as TEVA is set to start the morning more than 12% higher -- and possibly flirt with record highs -- after closing Friday at $61.85. Watch for more news from TEVA this week, as it will announce earnings on Thursday. The option pits are bearishly aligned toward TEVA ahead of the announcement, as the firm's Schaeffer's put/call open interest ratio (SOIR) 0.64 ranks in the 70th annual percentile. Should TEVA impress the Street, we could see some of this bearish sentiment unwind.

• MHFI is also getting in on the acquisition fun, announcing that it will buy financial data firm SNL Financial. McGraw Hill Financial Inc will dish out roughly $2.23 billion to purchase the company from private equity New Mountain Capital LLC. The cash deal is expected to add to MHFI's earnings in 2016. Meanwhile, the company also reported stronger-than-expected second-quarter earnings. Technically, MHFI has been a solid performer, but has spent the past few months battling a wall in the $109 region. The shares closed at $105.58 on Friday, and are pointed higher ahead of the bell.

• Finally, Chinese search engine SOHU is 6% lower in pre-market trading -- and in danger of hitting new lows -- after announcing quarterly earnings and after China's brutal trading day. Options players were aligning themselves on the bearish side of the spectrum ahead of the earnings report, as SOHU's SOIR of 0.62 was higher than 82% of the past year's worth of readings. Technically, shares of Sohu.com Inc have wilted 16% in 2015, and closed at $44.68 on Friday.

Analysts are weighing in today on food-ordering app GrubHub Inc (NYSE:GRUB), drugmaker Mylan NV (NASDAQ:MYL), and Greece-based transportation issue Diana Shipping Inc. (NYSE:DSX). Here's a quick roundup of today's bearish brokerage notes on GRUB, MYL, and DSX.

• Cowen and Company lowered its opinion on GRUB to "market perform" from "outperform," and slashed its price target to $30 from $39. The negative note -- which comes just ahead of the company's second-quarter earnings report, due out tomorrow morning -- has the shares 10% lower at $30.40. In fact, since hitting a record high of $47.95 in late March, GrubHub Inc has surrendered 36.6%. This could set the stage for future downgrades and/or price-target cuts, as all 14 covering analysts consider the shares a "buy" or better. What's more, GRUB's consensus 12-month price target of $47.88 sits in territory not charted in nearly four months.On the flip side, options traders remain quite bearish toward the security.
  


• MYL's buyout bid from Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) has been withdrawn, as the latter agreed to purchase Allergan PLC (NYSE:AGN) instead. The news has leveled Mylan NV shares, down 14.2% at $56.60 -- nearly wiping out the equity's year-to-date lead. Adding insult to injury, Cowen and Company downgraded the stock to "market perform" from "underperform," and reduced its price target to $65 from $80. The bear gap is a welcome development for recent put buyers. During the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open puts over calls at an accelerated clip, per MYL's put/call volume ratio of 0.46, which ranks in the 72nd annual percentile.


• DSX is down 3.2% out of the gate at $7.27, following a downgrade to "sell" from "hold" at Evercore ISI -- though the brokerage firm upped its price target to $6 from $5.50. Still, the shares remain 8.3% higher year-to-date. Short sellers foresee more downside ahead for Diana Shipping Inc., with short interest spiking 23.5% during the last two reporting periods. At present, 6% of the stock's float is sold short, which would take more than a week to repurchase, at DSX's typical daily trading clip. Looking ahead, the company will hit the earnings confessional on Friday morning.

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E-commerce king Amazon.com, Inc. (NASDAQ:AMZN) is reportedly developing drive-through grocery stores. The project, which sources say will initially be deployed in Silicon Valley, will allow customers to order online and schedule a pick-up time.

On the charts, AMZN has been a major mover, soaring 74% in 2015 to trade a hair below $540. Today, the stock is getting a 2% lift from price-target hikes at Goldman Sachs (to $650 from $570) and UBS (to $650 from $550). Last Friday, the shares gapped up on earnings to a record peak of $580.57.

Call buyers are banking on the upward momentum to continue. Amazon.com, Inc. (NASDAQ:AMZN) has racked up a 10-day call/put volume ratio of 1.28 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). That ratio ranks near the top quartile of all readings taken in the past year.

China-based equities are taking it on the chin again, after the Shanghai Composite suffered its worst day in years. Along with Baidu Inc (ADR) (NASDAQ:BIDU) and Sohu.com Inc (NASDAQ:SOHU), among the notable decliners are e-commerce concerns Alibaba Group Holding Ltd (NYSE:BABA) and JD.Com Inc (ADR) (NASDAQ:JD), Internet TV provider Youku Tudou Inc (ADR) (NYSE:YOKU), and silicon wafer maker JinkoSolar Holding Co., Ltd. (NYSE:JKS). Let's take a look at how BABA, JD, YOKU, and JKS are faring on the charts, and how Wall Street is betting on the shares.

BABA is 2.8% lower at $80.72. Since tagging a record low of $76.21 earlier this month, the shares attempted to stage a rebound, only to be rejected at their 40-day moving average. The stock is now 22% lower year-to-date.

Alibaba Group Holding Ltd shorts are likely cheering the slump. Short interest grew nearly 11% during the two most recent reporting periods, and now represents nearly a week's worth of pent-up buying demand, at BABA's average pace of trading. However, the stock could be vulnerable to an analyst backlash; 21 out of 22 brokerage firms maintain "buy" or better endorsements. 

JD is 4.7% lower at $33.02, and trading back beneath its 10- and 20-week moving averages. Still, the shares remain more than 42% higher in 2015, with recent pullbacks contained in the $32 neighborhood.

Amid all the volatility in China, short sellers have also piled on to JD.Com Inc. In fact, short interest surged 19.3% during the past two reporting periods. What's more, option players are also betting bearishly on JD. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 1.88 stands in the 86th percentile of its annual range, reflecting a healthier-than-usual appetite for bearish bets over bullish of late.

YOKU has surrendered 4% to linger near $19.34, and is testing support at its 10-month moving average. The stock has given up more than 21% so far in July, pressured beneath its 10- and 20-day trendlines. 

Still, option players remain optimistic. The security sports a 10-day ISE/CBOE/PHLX call/put volume ratio of 6.72, indicating traders have bought to open almost seven Youku Tudou Inc calls for every put during the past two weeks. Plus, this ratio registers in the 78th percentile, suggesting a bigger-than-usual bias toward long calls. What's more, traders are paying up for their short-term bets on YOKU, as the equity's Schaeffer's Volatility Index (SVI) of 73% stands higher than three-quarters of all other readings from the past year.

Finally, JKS has suffered the most thus far, down 5% at $22.74. The stock has dropped nearly 23% in July, and is on pace to end south of its 10-month moving average for the first time since February. 

While short interest dropped 14% during the most recent reporting period, these bearish bets still account for nearly 18% of JinkoSolar Holding Co., Ltd.'s total available float. Likewise, the stock's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.50 sits in the 70th percentile of its annual range, hinting at faster-than-usual put buying over call buying. However, four out of five analysts uphold "strong buy" opinions; a round of downgrades could exacerbate selling pressure on JKS.

By Francesco Guarascio and Renee Maltezou

BRUSSELS/ATHENS (Reuters) - Talks between Greece and its international creditors on a third bailout began in Athens on Monday but the lenders want to see more reforms turned into law before they disburse the first loans to keep the near-bankrupt country afloat.

The government of Prime Minister Alexis Tsipras has pushed two packages of measures through parliament this month as conditions for starting negotiations on a three-year loan program worth up to 86 billion euros ($95 billion) to keep Greece in the euro zone.

A spokeswoman for the European Commission said teams from the creditor institutions were now in Athens. "Work has started, meaning that the institutions are talking to the Greek authorities," she said.

The talks had been due to start last Friday, but were delayed because of organizational and security issues.

"Negotiations on a Memorandum of Understanding should now progress as swiftly as possible," Commission spokeswoman Mina Andreeva told a news briefing. Both sides say they want a deal concluded before Aug. 20.

People walk in the early morning at the Plaka area in Athens, Greece July 27, 2015. REUTERS/Ronen Zvulun

Greece came close to the brink during a long stand off between the government and its creditors, with Athens missing a debt repayment to the International Monetary Fund and forced to close the country's banks for three weeks.

Voters angered by years of austerity demanded by the creditors rejected an earlier bailout offer in a referendum, but Tsipras later agreed in Brussels to the lenders' terms as the crisis deepened.

The institutions involved in the talks are the European Commission, the European Central Bank and the IMF, as well as the euro zone's rescue fund, the European Stability Mechanism (ESM).

EU officials said the heads of mission of the Commission and the ECB were already on the ground and the new IMF mission chief was due in Athens by Friday to hold talks on a political level.

Andreeva said Greece had delivered "in a timely and overall satisfactory manner" on promises made at a euro zone summit on July 13 of prior legislation to enable the negotiations.

"More reforms are expected from the Greek authorities to allow for a swift disbursement under the ESM. This is also what is being discussed right now," she said.

The banks have re-opened after the ECB increased emergency funding but capital controls remain in place. Doubts also persist about whether a severely weakened Greek economy can support another program after a six year-long slump that has cut national output by a quarter and sent unemployment over 25 percent.

Among politically sensitive measures held back from the initial package were curbs on early retirement and changes in the taxation of farmers to close loopholes that are highly costly for the Greek state. A source close to the talks said these reforms were expected to be enacted by mid-August.

However, touching pensions is sensitive with Tsipras's left-wing Syriza party, which has already suffered a substantial revolt over the Brussels agreement, and the main opposition New Democracy party opposes ending tax breaks for farmers.

ACCESS PROMISED

EU officials played down the logistical and security issues that have dogged talks between the creditors and Greece since Tsipras's radical government took office in January, promising to free Greeks from humiliation and imposed austerity.

An EU official said access for the negotiators to ministries and all relevant government bodies had been agreed. An ECB official said part of the talks would take place at the Athens Hilton Hotel.

The talks will mostly cover a reform program that Greece must implement to receive phased disbursements of loans, money it needs to meet its debt service obligations and help recapitalize the banks. However, an ECB policymaker said they would also cover debt relief for Athens.

ECB Executive Board member Benoit Coeure said in a newspaper interview published on Monday that the euro zone no longer questions whether to restructure Greece's debt but rather how best to go about it.

All euro zone countries wanted Greece to remain in the shared currency bloc and were prepared to offer "unprecedented financial solidarity" as long as Greece carried out reforms, Coeure told the French daily Le Monde.

"In truth, the question is not whether to restructure Greece's debt but rather how to do it so that it would be really useful for the country's economy," he said.

"That's why it's important to make this restructuring, whatever form it takes, conditional on the application of measures that reinforce the economy and ensure the sustainability of Greek public finances," he added.

Coeure defended the ECB in the face of criticism about its handling of Greece, notably the rationing of liquidity to Greek banks, saying it had always stuck to its mandate during the crisis.

Five months of acrimonious negotiations had caused huge economic and financial costs for Greece, and exposed how deeply flawed the euro zone's decision-making was, he said, urging more integration in order to take tough decisions effectively.

Germany's finance minister proposed at the height of the crisis that Greece take a five-year "time out" from the currency bloc if it could not meet the conditions.

"The genie of euro zone exit has escaped in the Greek crisis and won't easily get back in the bottle," Coeure said.

 

 

(Additional reporting by Alexander Saeedy and Philip Blenkinsop in Brussels and Leigh Thomas in Paris; Writing by Paul Taylor; editing by David Stamp)

Electronics behemoth Apple Inc. (NASDAQ:AAPL) will make its Apple Watch available at more than 100 Best Buy Co Inc (NYSE: BBY) stores -- and on the BBY website -- in August. BBY will then expand the coverage to more than 300 of its stores before the holiday shopping crush. The retailer will sell 16 Apple Watch models, along with a plethora of accessories.  Unfortunately for those with more money than sense, the gold-cased Apple Watch Edition -- and its $10,000 price tag -- will not be available.

Is this a Hail Mary from AAPL after its soft revenue forecast and notable omission of Apple Watch figures? Perhaps. However, it should be noted that getting this high-ticket item into 300+ outlets -- not including Apple stores -- ahead of the holidays isn't a bad strategy. 

And, what about BBY? The retailer will give those shopping for the Apple Watch another chance to get a hands-on experience -- which could be seen as a positive. However, we are talking about a watch that carries a minimum price tag of $349. That is a lot of money -- but as AAPL has shown time and time again, there are people who will overlook the high price for the vanity of the latest tech. However, what if there aren't lines of people waiting for the Apple Watch at BBY? They could be stuck with a lot of $599 display models.

Technically, both stocks are struggling. AAPL gapped lower after its disappointing revenue forecast, and is staring up at its bearishly crossed 10-week and 20-week moving averages. BBY continues to fall under pressure (cue David Bowie and Queen) from its own 10-week moving average, and is down 17.5% year-to-date. 

As for sentiment, I am more surprised by the glut of optimism toward BBY. Let's look at analysts first -- 10 of the 17 following BBY rate it a "buy" or better. In fact, eight of the 10 ratings are "strong buys," which leaves plenty of room for downgrades. Plus, the stock's consensus 12-month price target of $42.05 stands in territory not charted since 2013. If the ratings houses finally catch on to this poor performance, downgrades and/or price-target cuts could shove the shares lower.

Analysts aren't alone in their bullish love for Best Buy Co Inc (NYSE:BBY), as the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.55 ranks lower than 86% of those taken during the past 52 weeks. This optimism could easily unwind and further BBY's slump.

Turning to Apple Inc. (NASDAQ:AAPL), perhaps some of the shine has come off this Street darling -- in the options pits, anyway. AAPL's SOIR of 0.72 actually ranks near the middle of the past year's worth of readings. However, there is plenty of optimism from brokerages. AAPL boasts 17 "strong buy" rankings and three more "buys," with not a "sell" in sight. Likewise, the equity's consensus 12-month price target of $147.79 stands in uncharted territory.

Analysts are weighing in today on pharmaceutical firm Biogen Inc (NASDAQ:BIIB), cloud-based storage firm Box Inc (NYSE:BOX), and air carrier holding company Republic Airways Holdings Inc. (NASDAQ:RJET). Here's a quick look at today's brokerage notes on BIIB, BOX, and RJET.

• After downward revision to its full-year outlook wiped out Biogen Inc's year-to-date gains last week, the company's stock is 2.3% higher today at $307. The reason for the increase? Perhaps it is news that BIIB will forge a strategic alliance with the Parkinson's Institute and Clinical Center, focused on learning more about the disease. This news is helping take some investors' minds off of last week, but a number of brokerages can't forget. Morgan Stanley issued a price-target cut to $426 from $520, but reiterated its "overweight" opinion. This move accompanied Baird's decision to slash BIIB's price target to $316 from $480, as well as additional price-target cuts at Leerink, RBC Capital Markets, and UBS. Optimism may unwind in the option pits, too, as the firm's Schaeffer's put/call open interest ratio (SOIR) of 0.98 is lower than 86% of the readings taken in the past 52 weeks. Further pressure could come from analysts, as the biopharmaceutical company has earned nine "strong buys" and one "buy" out of 18 total ratings. Downgrades could serve to push BIIB lower.


• BOX is 1.8% higher this afternoon at $16.58, after the company received a late-night upgrade from Pacific Crest. The brokerage upped Box Inc to an "overweight" rating. Despite today's solid performance, the shares seem boxed in a trading range defined by the $19.50/$20 region on the top end and the $16 region on the bottom. Bulls may be hoping that a short-covering rally could push the stock higher, as 9.9% of BOX's float is sold short. It would take nearly six days for these shorts to cover their positions, representing ample sideline purchasing power.


• Our final news comes from Republic Airways Holdings Inc., which has lost 56.5% to trade at $3.69 -- and earlier touched a three-year low of $3.63. Yesterday, Deutsche Bank reduced its rating to a "hold" from a "buy," and cut RJET's price target to $9 from $15. The brokerage cited an uncertain earnings outlook, along with pilot staffing issues, for the move. Cowen and Company slashed its price target, as well, to $8 from $13. Further contributing to the panic selling is news RJET has rescinded all previously issued financial and operational guidance, as it continues to suffer from an ongoing labor dispute and a pilot shortage.

Stocks in Asia were a mixed bag today, with Chinese equities again leading the losers. Securities regulators on the mainland chalked up yesterday's brutal crash to "share dumping," and announced the government's intent to buy stocks in support of the market. Despite that pledge -- and fresh liquidity injections from the People's Bank of China -- the Shanghai Composite shed 1.7% by the close. The Hong Kong Hang Seng, though, managed to add 0.6%. Elsewhere, South Korea's Kospi eked out a 0.01% move higher, but Japan's Nikkei dropped 0.1%. 

In Europe, markets are moving higher, with positive earnings reports from the likes of Statoil and Michelin drowning out the mess in China. Germany's DAX was leading the way at last check, up 1.4%. France's CAC 40 is 1.1% above breakeven, and London's FTSE 100 has posted a 0.8% lead. 

Analysts are weighing in today on mobile phone brand BlackBerry Ltd (NASDAQ:BBRY), Wall Street rookie Paypal Holdings Inc (NASDAQ:PYPL), and drugmaker Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA). Here's a quick roundup of today's bullish brokerage notes on BBRY, PYPL, and TEVA.

• BBRY is poised to pop nearly 3% at the open, following a bullish note from Morgan Stanley. Specifically, the brokerage upped its rating on the stock to "equal weight" from "underweight," citing the company's "flexibility with cash and opportunity for opex cuts." Last night, BlackBerry Ltd settled at $7.28, and if it can make a decisive move north, there's plenty of room to run. Over 21% of the equity's float is sold short, representing more than two weeks' worth of pent-up buying power, at typical daily volumes. Also, additional upgrades could come down the pike, considering 18 of 22 analysts rate BBRY a "hold" or worse.


• Jefferies initiated coverage on PYPL with a "buy" rating and $44 price target. The stock has received a lot of upbeat attention since going public earlier this month, but on the charts, has been pulling back since topping out at a record $42.55 on July 20. Specifically, Paypal Holdings Inc has surrendered 14.5% since then, settling Monday at $36.39. Meanwhile, options traders have been buying to open calls over puts at a rapid-fire rate. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), PYPL's 10-day call/put volume ratio is 6.52. These bulls may be rewarded this morning, with the stock pointed 1.4% higher in electronic trading.


• TEVA, which will hit the earnings stage Thursday morning, made headlines yesterday with a pair of M&A updates. It's more of the same today, with the company reporting the European Medicines Agency has confirmed a successful validation of its reslizumab marketing authorization application. In addition, Teva Pharmaceutical Industries Ltd has received a number of positive notes. For example, BMO upgraded the stock's rating to "outperform" from "market perform," and boosted its price target to $80 from $75, while Leerink bumped its price target by $10 to $84. Options traders still aren't sold, however -- the equity's 50-day ISE/CBOE/PHLX put/call volume ratio of 1.19 sits only 4 percentage points from an annual peak. On the charts, it's been a good year for TEVA, especially after the security jumped over 16% yesterday -- and notched a record high of $72.15. Specifically, the shares have advanced 25.2% in 2015.

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The Dow Jones Industrial Average (DJIA) looks poised to start on a positive note this morning, as the Federal Open Market Committee (FOMC) convenes its two-day policy meeting.  In equity news, today's stocks to watch include automotive firm Ford Motor Company (NYSE:F), auction giant eBay Inc (NASDAQ:EBAY), and technology and manufacturing company Honeywell International Inc. (NYSE:HON).

• F easily surpassed expectations with its second-quarter earnings report this morning. Ford Motor Company earned 47 cents per share during the second quarter, topping analyst estimates by 10 cents per share. The automotive company attributed the earnings performance to strong pricing in North America -- driven by the company's revamped F-150 pickup truck. We could see a bit of bearish sentiment unwind in the wake of this morning's news, as F saw put buying accelerate ahead of its earnings report. F is poised to start the session on a positive note, as the shares are nearly 2.5% higher in pre-market trading action, after settling Monday at $14.58.  


• After the closing bell sounded yesterday, online auction giant eBay Inc announced that it is putting an end to its one-hour domestic delivery service. EBAY noted that the service -- called eBay Now -- provided "encouraging results" but emphasized that the program was "always intended ... as a pilot." Technically speaking, EBAY's performance is picking up, thanks to support from its 10-day moving average. The stock is up 18.5% year-to-date, and finished Monday at $28.00. Option players are bullishly aligned toward the equity, as EBAY's Schaeffer's put/call open interest ratio (SOIR) of 0.40 is lower than 94% of the readings taken in the past 52 weeks. While option players are upbeat, analysts have some room for upgrades. Seventeen of the 26 brokerages tracking the auction house rate it a "hold" or worse -- leaving plenty of room for bullish notes to help further the stock's current winning streak.


• The final stock in our morning news roundup is HON -- which announced that it will purchase gas, electric, and water meter producer Elster for $5.1 billion. Honeywell International Inc. CEO Dave Cote stated that Elster has "outstanding technologies, brands, energy efficiency know-how, and global presence, all of which we are very well-positioned to build on." Technically, HON is in the midst of a rather impressive run higher. Since late 2011, the shares have roughly doubled in value, depending on the support of their 10-month moving average. After closing Monday at $101.64, HON is set to open fractionally higher.

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