Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Aug 30, 2017 at 3:18 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are trading higher this afternoon, as the S&P 500 Index (SPX) heads toward its fourth straight win. Among the stocks in the spotlight today are chipmaker Himax Technologies, Inc. (NASDAQ:HIMX), healthcare solutions provider Novartis AG (NYSE:NVS), and biopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD). Here's a quick look at what's moving shares of HIMX, NVS, and GILD.

Himax Teams With Qualcomm to Make 3-D Camera

Shares of Himax Technologies are up 6.3% to trade at $9.26, after the company announced its collaboration with Qualcomm (QCOM) to develop and commercialize a high resolution 3-D depth-sensing camera system, called SLiM. The two companies plan to launch mass production of the camera during the first quarter of 2018.

HIMX has climbed roughly 78% from its three-year low of $4.88 set on Feb. 10 to yesterday's close of $8.71. Now up 53.3% year-to-date, the chipmaker's stock is poised for a monthly close above its 20-month moving average for only the second time in 2017.

HIMX has consistently exceeded options traders' volatility expectations over the past year, as evidenced by the stock's Schaeffer's Volatility Scorecard (SVS) of 100. And yet near-term option traders continue to price in relatively low volatility expectations, as HIMX's Schaeffer's Volatility Index (SVI) stands at 48% -- lower than 91% of all other readings from the past year.

Novartis Scores First FDA Approval for Gene Therapy Drug

Novartis stock is down 1.1% to trade at $82.73, despite receiving approval for its CAR-T cell therapy cancer treatment from the Food and Drug Administration (FDA) -- making it the first gene therapy available in the U.S. The treatment, named Kymriah, is designed to use a patient's own T cells to fight acute lymphoblastic leukemia.

NVS is pulling back to test its 80-day moving average for the first time since April, but still boasts a roughly 12% year-to-date lead. Plus, five of the eight analysts following the stock rate it a "strong buy."

Gilead Sciences Stock Gains on Novartis FDA Nod

Boosted by the FDA's landmark approval of CAR-T therapy are shares of Gilead Sciences stock, last seen trading 6.6% higher at $80.73 -- nearing its 52-week high of $82.07, set on Sept. 20. This comes just days after Gilead announced its plan to buy Kite Pharma (KITE), another player in the CAR-T drug development space, for $11.9 billion.

After a few days of well-received news for the long-term underperformer, GILD is fast approaching overbought status. At last check, the equity's Relative Strength Index (RSI) was docked at 67.75.

Published on Aug 31, 2017 at 9:15 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on Chinese travel stock Ctrip.Com International Ltd (ADR) (NASDAQ:CTRP), fiber optics specialist Finisar Corporation (NASDAQ:FNSR), and retailer Chico's FAS, Inc. (NYSE:CHS). Here's a quick roundup of today's bearish brokerage notes on shares of CTRP, FNSR, and CHS.

Daiwa Downgrades CTRP Stock After Earnings

Ctrip stock is down 5% in electronic trading, after the company's second-quarter earnings report was met with a downgrade to "outperform" from "buy" at Daiwa Capital Markets, with the brokerage firm citing uncertainty surrounding cross-sale revenue in the latter half of the year. A price-target cut to $58 from $65 at Raymond James is only adding to the bearish bias, though this still sits well above last night's close at $52.72.

More broadly, the stock pulled back after notching a record high of $60.65 on July 27, but ricocheted off its 200-day moving average -- a trendline that served as a ceiling back in January. Some options traders were betting on a bigger bounce from here, with the September 55 call seeing the notable volume in the last 10 days, and data from the major options exchanges confirming buy-to-open activity here.

Analysts are Surprisingly Upbeat Toward FNSR Stock

Ahead of next Tuesday's annual shareholders meeting, Finisar saw its price target lowered to $33 from $37 at Raymond James. FNSR shares are down 1.9% ahead of the open, after closing last night at $25.08. It's been a tough year for the tech stock, which is down 17.2% in 2017. What's more, the stock's 200-day moving average put a quick halt to rally attempts in June and July. With all 11 covering analysts still maintaining a "strong buy" rating, more bearish brokerage notes could be on the horizon.

More Good News for CHS Shorts

Yesterday morning's earnings miss earned Chico's a round of negative analyst notes overnight. No fewer than five brokerages lowered their price targets on the stock, including Telsey Advisory to $9 from $10. After closing down 4% yesterday at $7.52 -- and hitting a new eight-year low of $6.96 -- Chico's shares are down 1.5% in pre-market trading.

And with the security down almost 48% year-to-date, short sellers have been on the winning side of this trade. Despite being short-sale restricted yesterday, short interest jumped 17.5% in the two most recent reporting periods to 21.7 million shares -- roughly 18% of CHS stock's available float.
Published on Aug 31, 2017 at 10:07 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on Jeep parent Fiat Chrysler Automobiles NV (NYSE:FCAU), Chinese social networking concern Momo Inc (NASDAQ:MOMO), and footwear retailer Shoe Carnival, Inc. (NASDAQ:SCVL). Here's a quick roundup of today's brokerage notes on shares of FCAU, MOMO, and SCVL.

Goldman Expects FCAU to Double

Fiat Chrysler stock is up 2.2% to trade at $15.12, a new record high, after Goldman Sachs raised its price target to $30.10 from $22.40 -- about twice FCAU stock's current price -- and said it maintains a "conviction buy" rating. The Goldman analysts were encouraged by the spin-off potential the company has been exploring. FCAU stock has already tacked on 120% year-over-year.

In the options pits, traders have demonstrated a stronger-than-usual appetite for calls. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FCAU sports a 50-day call/put volume ratio of 5.46, which ranks in the highest percentile of its annual range. 

Goldman Sets The Bar High For MOMO Stock

MOMO stock is up 3.7% to trade at $37.44, after Goldman Sachs initiated coverage on the Chinese stock with a "buy" rating and a price target of $56 -- in uncharted territory for the shares, and representing expected upside of 55% from MOMO's current levels. The stock has more than doubled year-to-date, and the shares' 200-day moving average contained their  latest pullback attempt following a subpar earnings report.

It's a prime time to buy premium on short-term MOMO options, based on the security's Schaeffer's Volatility Index (SVI) of 49%, which ranks in the 6th percentile of its annual range. Furthermore, MOMO has consistently exceeded options traders' volatility expectations over the past year, as evidenced by the stock's Schaeffer's Volatility Scorecard (SVS) of 96.

Earnings Beat Has Shoe Carnival Back From The Dead

Shoe Carnival stock is up 22% to trade at $19.99, after the retailer posted well-received earnings. The earnings beat prompted Susquehanna to raise its price target to $19 from $18. It's been a rough year for SCVL stock, which fell to six-year low of $15.07 on Tuesday. The rally today takes the shares past their 80-day moving average, which hasn't been toppled on a daily closing basis since April.

A great deal of Shoe Carnival shorts could be kicking rocks today. Short interest increased by 30% during the last two reporting periods, and represents a healthy 10% of the stock's total available float. It would take nearly 10 days for the shorts to fully cover their positions, at SCVL's average daily trading volume.
Published on Aug 31, 2017 at 10:15 AM
Updated on Mar 19, 2021 at 7:15 AM
  • The Week Ahead
With few notable companies featured on the upcoming week's earnings slate, investors will be forced to focus on economic data. More specifically, the holiday-shortened week is dominated by a slew of speeches from regional Fed presidents, including four on Thursday alone. Meanwhile, Kroger Co's (NYSE:KR) release on Friday is likely the most noteworthy part of the week's earnings calendar. 

Below is a brief list of some key market events scheduled for the upcoming week. All earnings dates listed below are tentative and subject to change. Please check with each company's respective website for official reporting dates.

The U.S. stock market will be closed on Monday, Sept. 4, for Labor Day

On Tuesday, Sept. 5, factory orders will hit the Street. Traders will also hear from Fed Governor Lael Brainard, Minnesota Fed President Neel Kashkari, and the Dallas Fed President Robert Kaplan. Hewlett Packard (HPE) will release earnings. 

For Wednesday, Sept. 6, the economic calendar features international trade data, the Institute for Supply Management (ISM) non-manufacturing index, and the Fed's Beige Book. Fred's (FRED), G-III Apparel (GIII), JinkoSolar (JKS), and Verint Systems (VRNT) make up the earnings calendar. 

Weekly jobless claims, productivity and labor costs, and the regularly scheduled update on domestic crude inventories come out on Thursday, Sept. 7. Plus, Atlanta Fed President Raphael Bostic, New York Fed President William Dudley, Kansas City Fed President Esther George, and Cleveland Fed President Loretta Mester will all speak throughout the day. Barnes & Noble (BKS), Finisar (FNSR), Navistart (NAV), VeriFone (PAY), and Zumiez (ZUMZ) are the companies that'll report earnings. 

Philadelphia Fed President Patrick Harker will talk on Friday, Sept. 8, and Kroger (KR) will round of the earnings schedule. 
Published on Aug 31, 2017 at 10:32 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

U.S. stocks are moving higher on the final trading day of August, with the S&P attempting to avoid a monthly loss. Three companies making post-earnings moves this morning are bargain retailer Dollar General Corp. (NYSE:DG), tech company Ciena Corporation (NYSE:CIEN), and Greek transport name DryShips Inc. (NASDAQ:DRYS). Here's a quick look at what's pressuring shares of DG, CIEN, and DRYS.

Option Bulls Caught Off-Guard by DG Margin Shock

Dollar General reported better-than-expected second-quarter earnings, but the stock is plummeting today as gross margin contracted by 47 basis points amid increasing price pressures within the retail sector. DG is down 6.2% at $72.01, with today's bear gap accelerating the equity's retreat from the $80 region -- which serves as the upper rail of a trading range that's confined DG's movements since its August 2016 post-earnings bear gap. Support at the lower rail won't come into play until around the $68 region.

Ahead of the quarterly report, options traders were bullish on the retail stock. DG's Schaeffer's put/call open interest ratio (SOIR) of 0.54 ranks higher than only 6% of other readings from the past year. This suggests short-term options players have rarely been more call-heavy in the past 12 months -- and it's safe to say those bulls were caught off-guard by today's sell-off.

CIEN In Danger of Downgrades After Weak Forecast

Though CIEN reported better-than-expected fiscal third-quarter earnings and revenue, the shares are dropping rapidly after the networking specialist offered a fourth-quarter revenue outlook that fell considerably short of the consensus estimate. CIEN is down 11.8% at $21.40, and earlier set a new year-to-date low of $21.37.

In light of today's negative news and the ensuing plunge in CIEN stock, downgrades are a serious risk. Currently, 12 of 14 analysts carry a "buy" or better rating, with only two sporting tepid "hold" recommendations, and zero "sells." Any negative notes from this group could cause additional pressure on the stock.

Analysts Have Abandoned Struggling DRYS

DRYS stock reported a second-quarter loss that expanded to $15.6 million from the previous year's $13.4 million -- but with no analysts currently tracking the stock, the shipper didn't technically fall short of consensus estimates. At last glance, DRYS is trading 11.5% lower at $2.69, extending its long-term underperformance on the charts. The embattled Greek drybulk carrier recently hit a record low of $0.98 on July 27; meanwhile, a series of controversial reverse stock splits have resulted in an adjusted annual high for DRYS of $799,680, set back on Nov. 15. 
Published on Aug 31, 2017 at 2:22 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are trading higher this afternoon, getting a lift from the latest economic data. Three stocks in the spotlight today that have seen better days, however, are bank stock Wells Fargo & Co (NYSE:WFC), footwear and apparel retailer Genesco Inc. (NYSE:GCO), and pharmaceutical company Steadymed Ltd (NASDAQ:STDY). Here's a quick look at what's moving shares of WFC, GCO, and STDY.

Wells Fargo Finds More Phony Accounts

Wells Fargo stock is down 0.8% to trade at $50.95, after the company found 70% more unauthorized accounts than previously thought. The findings come almost a year after the bank fired thousands of employees over the fake account scandal

Now down 7.5% year-to-date, WFC is pacing for its lowest close since November, and is poised to close below its 20-month moving average for only the second time in 2017. Still, roughly a third of the 22 analysts following the stock rate it a "buy" or better, leaving room for bearish brokerage notes, should the shares extend their decline. 

Jefferies Cuts GCO's Price Target Nearly in Half After Earnings Miss

Shares of Genesco are down 16.1% to trade at $21.40, and earlier hit a seven-year low of $21.15, after the company reported lower-than-expected second-quarter earnings and missed revenue forecasts. As a result, Jefferies cut its price target on GCO nearly in half, to $27 from $48.

Genesco stock is today's worst percentage loser on the New York Stock Exchange, and is down almost 65% year-to-date. Shorts are likely cheering today's decline, as short interest represents roughly 9% of GCO's total available float, or six times the stock's average daily trading volume. Today, however, Genesco stock is on the short-sale restricted (SSR) list.

STDY Stock Sinks After FDA Letter

Steadymed stock is down a whopping 34% to trade at $3.90, after the U.S. Food and Drug Administration (FDA) turned down the company's new drug application for Trevyent, which is designed to treat a rare lung disease. The FDA is asking Steadymed to provide more information on the drug.

Today's plunge has the stock on pace for its worst-ever one-day decline, and ranks STDY as the biggest percentage loser on the Nasdaq. STDY has lost more than half of its value since hitting an annual high of $9.70 on April 3, and could close the month beneath its 20-month moving average for the first time since January. Some bears jumped ship a little too early, as short interest on STDY has decreased by 18% over the past two weeks. Short interest, however, still represents more than nine times the stock's average daily trading volume.

Published on Sep 1, 2017 at 9:43 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on cloud name Nutanix Inc (NASDAQ:NTNX), cybersecurity stock Palo Alto Networks Inc (NYSE:PANW), and yoga apparel maker Lululemon Athletica inc. (NASDAQ:LULU). Here's a quick roundup of today's bullish brokerage notes on shares of NTNX, PANW, and LULU.

NTNX Stock Set to Soar on Impressive Revenue Numbers

Nutanix shares received price-target hikes from Morgan Stanley (to $22) and J.P. Morgan Securities (to $26), after the company reported a slimmer-than-expected fiscal fourth-quarter loss, while posting a revenue beat. The tech firm also forecast upbeat current-quarter revenue numbers, sending NTNX shares 6% higher out of the gate to $23.25.

NTNX stock has been rising atop a trendline connecting a series of higher lows since its early May bottom of $14.38, even with short interest more than doubling in value over this same time frame. Currently, 14.05 million NTNX share are sold short, or nearly 40% of the stock's float. This could speak to underlying strength in NTNX, and prompt some of the weaker bearish hands to capitulate to this positive price action.

J.P. Morgan Securities Upgrades PANW Stock After Earnings

Palo Alto Networks earnings got a boost from the recent WannaCry ransomware attack, with fiscal fourth-quarter profit and revenue coming in above estimates. Analysts were quick to chime in, with J.P. Morgan Securities upgrading PANW stock to "overweight" from "neutral," and joining no fewer than five other brokerage firms in raising their respective price targets.

PANW shares are up 8.2% higher to trade at $143.42. Nevertheless, the $141-$144 neighborhood has kept a tight lid on the stock since early June.

One group of short sellers could be breathing a sigh of relief today, considering short interest on PANW fell 12% in the most recent reporting period. With just 4.35 million shares sold short, these bearish bets are at their lowest level since February 2016.

Post-Earnings Price-Target Hikes Pour In for Lululemon Athletica Stock

LULU stock is up 6.5% to trade at $61.35, after the retailer reported stronger-than-expected second-quarter earnings thanks to a 30% pop in online sales. A round of price-target hikes is stoking the bullish flames, with J.P. Morgan Securities setting the loftiest target at $71 -- in territory not charted since last December.

Heading into today's trading, Lululemon stock had been trending lower since hitting a near-term high of $64 -- a key technical level for the shares. Options traders, meanwhile, have rarely been as call-skewed among options set to expire in three months or less, per LULU's Schaeffer's put/call open interest ratio (SOIR) of 0.58, in the bottom percentile of its annual range.
Published on Sep 1, 2017 at 10:02 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

U.S. stocks are trading mostly higher this morning, despite lackluster August jobs data. Among specific stocks in focus are hospital operator Tenet Healthcare Corp (NYSE:THC), healthcare name Dr.Reddy's Laboratories Ltd (ADR) (NYSE:RDY), and biotech Aptevo Therapeutics Inc (NASDAQ:APVO). Here's a quick look at what's boosting shares of THC, RDY, and APVO.

Wall Street Cheers Tenet Healthcare CEO Announcement

Tenet Healthcare stock is up 0.1% at $17.19, folowing news the company's chairman and CEO Trevor Fetter will step down by March. Still, the shares have given back 27% during the past 12 months, and hit an eight-year low of $12.54 last month. 

This comes as short sellers have been pounding THC stock, with short interest skyrocketing over the past year, including an 18% surge in the last two reporting periods. The 32 million Tenet Healthcare shares now sold short is the highest reading on record, and represents roughly two-fifths of the equity's float. 

Patent Ruling Boosts Dr. Reddy's Stock

A favorable patent ruling for the company's generic version of Indivior's Suboxone has shares of Dr. Reddy's Laboratories gaining this morning, last seen 6.2% higher at $34.18. The stock was in need of a positive catalyst, as it's down 26% year-over-year, losing roughly half its value since its 2015 peak of $68. A continued rise for RDY could garner some upbeat attention from analysts, since it has yet to score a single "buy" recommendation. 

Aptevo Therapeutics Stock Torches Short Sellers

Aptevo Therapeutics has soared 60% to trade at $2.13, after the company said it plans to develop its own prostate cancer drug. Plus, it's selling three drugs to Saol Therapeutics for $65 million. The penny stock has been sliding in recent months, touching a record low of $1.15 earlier this week. As such, today's price action is sure to shock a number of short sellers. During the last two reporting periods, these bearish bets increased by 30%. 
Published on Sep 1, 2017 at 10:06 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on technology distributor Tech Data Corp (NASDAQ:TECD), GoPro supplier Ambarella Inc (NASDAQ:AMBA), and retail stock Fred's, Inc. (NASDAQ:FRED). Here's a quick roundup of today's bearish brokerage notes on shares of TECD, AMBA, and FRED.

Earnings Miss Fries Tech Data

Tech Data is down 19% to trade at $89.28 -- the biggest percentage loser on the Nasdaq today -- after the company's second-quarter earnings and current-quarter guidance fell short of expectations. The earnings miss was met with a price-target cut to $110 from $115 from Stifel.

TECD stock is coming off a record high of $111.10 on Wednesday, but has now fallen below its 200-day moving average for the first time since September. Analysts lean bullishly toward the tech stock. Over 57% of the brokerages covering TECD rate the shares a "buy" or better, which could leave Tech Data stock at risk of additional negative notes.

Ambarella Stock Reeling After Guidance

Ambarella stock is down 17% to trade at $45.12 -- and just touched a new annual low of $45.06 -- to emerge as the second-worst Nasdaq loser today. While the GoPro supplier delivered a second-quarter earnings report that topped Wall Street's expectations, it lowered its full-year guidance. Craig Hallum downgraded AMBA stock to "hold" from "buy," and no fewer than four analysts cut their price targets, including to $49 from $54 at Deutsche Bank.

In the options pits, traders have preferred AMBA calls to puts by a wider-than-usual margin. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has racked up a 10-day call/put volume ratio of 3.57, which is higher than 81% of all other readings from the past year. 

Fred's Stock Hovers Around New Lows

Fred's Inc stock is up 1.4% to trade at $6.00, despite Deutsche Bank cutting its price target to $5 from $7. FRED stock fell to a 17-year low of $5.62 on Aug. 17, and has shed over 68% year-to-date. The shares' 30-day moving average has been a firm ceiling since late June, just before the stock gapped lower on scrapped M&A plans with Rite Aid.

Despite decreasing by 7% during the last reporting period, short interest continues to dominate the landscape for FRED shares. Over 19 million shares are sold short, which accounts for a whopping 72.5% of the stock's total available float. This accumulation represents more than 25 times FRED's average daily trading volume. 

Published on Sep 1, 2017 at 1:53 PM
Updated on Mar 19, 2021 at 7:15 AM
  • 5-Minute Market Rundown
Stocks got off to a slow start this week, with all eyes on Hurricane Harvey. However, despite the devastating storm and re-emerging tensions with North Korea, the major market indexes proved resilient. In fact, the Dow on Tuesday enjoyed its biggest intraday comeback in more than a year. Further, the S&P 500 Index (SPX) is aiming for its longest win streak since May, and the Nasdaq Composite (COMP) notched a record-high close, as tame inflation and jobs data diminished expectations for a Fed rate hike in December.

Harvey Moves Markets, Gasoline Prices

Hurricane Harvey ravaged the oil-rich Gulf Coast and sent gasoline futures soaring to two-year highs. Home Depot and Lowe's stocks also jumped, amid rising expectations for home-improvement supplies following massive flooding in Texas. On the flip side, what's expected to be the costliest natural disaster in U.S. history sent insurance stocks into the red -- and Dow stock Travelers could be in for another rough week, if history is any indicator. Crude oil prices, meanwhile, fell, and these energy ETFs could be in for more downside this month.

Geopolitical Tensions Ramp Up 

North Korea  launched a missile test that flew over Japan, prompting President Trump to warn that "all options are on the table," and "talking is not the answer." The renewed geopolitical tensions sparked a rush to so-called "safe havens" like gold, with the malleable metal wrapping up its biggest monthly gain since January. In addition, several gold stocks attracted the attention of options traders. Outside of North Korea, options traders also flocked to this Russia ETF amid tensions with the Soviet nation.

Retail Earnings Remain in Focus

Although earnings season is still winding down, a handful of retail names were in the spotlight this week. Genesco stock hit a seven-year low after an earnings miss, and Dollar General stock fell on a margin shock. A Finish Line profit warning weighed on athletic apparel stocks early in the week, but Lululemon bucked the trend after a strong earnings showing on Friday -- much to the delight of recent options traders.

FDA Moves Drug Stocks

It was a busy week for the Food and Drug Administration (FDA). The regulatory body rejected Acorda's Parkinson's drug, sending the shares lower, and an FDA letter sank Steadymed stock. On the other hand, an FDA decision lifted Abeona Therapeutics stock, and a landmark FDA nod for Novartis also lifted Gilead Sciences. And speaking of Gilead, the company's purchase of Kite Pharma made major noise in the biotech sphere, translating into a boon for sector peer for Juno Therapeutics.

Meanwhile, a key drug trial fail sent Otonomy stock reeling, Paratek Pharmaceuticals continues to crush shorts, and a C-Suite shakeup had Tenet Healthcare stock among the many pharma stocks in the black on Friday. Looking ahead, a handful of drug stocks are among the best to own in September.

Best/Worst Stocks In the Short Term

Next week, the holiday-shortened week is dominated by a slew of speeches from regional Fed presidents, including four on Thursday alone. Meanwhile, Kroger is among the companies in the earnings confessional. For traders looking for Labor Day week stocks to buy, a couple of FAANG stocks made the list.

Looking beyond next week to the month of September, though, Apple stock is among the worst stocks to own, historically. Apple will be in focus mid-month, especially, after confirming its Sept. 12 iPhone event. Meanwhile, speculators may also want to avoid this pair of retailers, and beware banks, as this finance ETF tends to underperform in September. On the flip side, these software stocks could rally, if past is prologue, and Schaeffer's founder and CEO Bernie Schaeffer recently reiterated the case for tech over small-caps.
Published on Sep 1, 2017 at 2:46 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are trading higher this afternoon, with the Dow attempting to conquer the 22,000 mark for the first time in two weeks. Also trading higher after reporting August sales are Detroit's "Big Three" car stocks Ford Motor Company (NYSE:F)General Motors Company (NYSE:GM), and Fiat Chrysler Automobiles NV (NYSE:FCAU). Plus, investors expect that damage caused by Tropical Storm Harvey could boost car sales in the coming months. Here's a quick look at how the data is driving shares of F, GM, and FCAU.

Ford Motor Stock Boosted by Expected Post-Harvey Demand

Ford Motor stock is up 3.4% to trade at $11.40 -- set for its highest close in nearly five weeks -- after the August U.S. sales data showed a 15% increase in the company's F-series pickup truck sales, which was boosted by its introduction of the new 2018 Ford F-150 model. The car company's total sales for the month, however, declined 2.1% compared to a year prior, though some were expecting a steeper drop in the wake of Harvey-related dealer closures. Ranking among the most active by volume on the New York Stock Exchange (NYSE) today, F stock is poised to close above its 120-day moving average for the first time since late July.

As the No. 1 automaker in the Houston market, per IHS Markit, Ford plans to ship used cars to Houston dealers to meet the demand of thousands of residents whose cars were damaged during the storm. After Hurricane Katrina ravaged New Orleans in 2005, Mark LaNeve, Ford's sales chief in the U.S., said the company saw "a very dramatic snapback" in vehicle demand.

Ford option traders have had quite the bullish appetite. F's 10-day call/put volume ratio stands at 3.25 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and the NASDAQ OMX PHLX (PHLX) -- in the 91st percentile of its annual range -- indicating traders have bought to open more than three F calls for every F put. 

General Motors Pacing for Best Day in Months

Like Ford, General Motors plans to transport used cars to Houston in order to meet market demands and to reduce its inventories. Also joining Ford stock among the most active by volume on the NYSE is General Motors stock, last seen trading 3% higher at $37.65 -- on track for its biggest one-day percentage gain in nearly six months. Driving GM shares higher is the company's 7.5% increase in year-over-year August sales.

GM is now up roughly 8% year-to-date, and is nearing its annual high of $38.55, which it set on March 6. Still, just five of the 13 analysts rate GM a "buy" or better, and not one analyst suggests selling the stock. A flood of upgrades could lure even more buyers to General Motors' bandwagon.

Fiat Chrysler Stock Revs Up to Record High

Shares of Fiat Chrysler are also trading higher today, last seen up 5.1% at $15.91, after hitting a record high of $16.03 earlier. Although the car company reported an 11% decline in U.S. vehicle sales this August compared to the year before, the company gained market share in Italy, and Standard & Poor's (S&P) revised its outlook on the Jeep parent to "positive" from "stable."

FCAU stock has been on a tear since plowing through resistance in the $11.50-$12 region in mid-August, hitting a string of all-time highs. What's more, a short squeeze could add fuel to the car stock's fire. Short interest represents more than six days' worth of pent-up buying demand, at Fiat stock's average daily trading volume.

Published on Sep 5, 2017 at 9:46 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

U.S. stocks are retreating this morning following the latest news out of North Korea. Among specific stocks in focus are healthcare names Cellect Biotechnology Ltd. (NASDAQ:APOP)Cellectis SA (NASDAQ:CLLS), and Insmed Incorporated (NASDAQ:INSM). Here's a quick look at what's boosting shares of APOP, CLLS, and INSM.

APOP Stock's Jaw-Dropping Year Continues

Cellect Biotechnology stock is up 16.2% at $10.61 this morning -- a record high -- thanks to news the Food and Drug Administration (FDA) granted orphan drug designation to the company's ApoGraft technology. It's been a huge year for the shares, which entered 2017 trading just above $3. It would seem, then, that APOP stock is long overdue for bullish analyst attention. That is, only one brokerage firm currently tracks the equity. 

Cellectis Sells Off After FDA Clinical Hold

Shares of Cellectis SA are down 26% to trade at $23.84, after the FDA put a clinical hold on its CAR-T drug trial following a patient death. While CLLS is still up 39% on a year-to-date basis, today's price action could be a crushing blow to recent options traders. For instance, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) reveals that more than nine call options have been bought to open for every put during the past two weeks, hinting at a strong bullish bias among speculators. 

Insmed Stock Move Could Crush Options Traders

Insmed stock has exploded out of the gate, last seen up 122% at $27.30 -- an 11-year high -- after the company's treatment for lung disease, ALIS, met its goals in a late-stage study. This marks a sudden turnaround for INSM shares, which fell sharply in August. The recent weakness in the security could explain why options traders have been so bearish. Specifically, more than 2,600 puts were bought to open during the past two weeks at the ISE, CBOE, and PHLX, compared to just 506 calls. 

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