Today's stocks to watch in the news include Keurig Green Mountain Inc (GMCR), J C Penney Company Inc (JCP), and United States Steel Corporation (X)
Futures are pointed sharply higher this morning, ahead of the Federal Open Market Committee's (FOMC) latest meeting minutes. In company news, today's stocks to watch include coffee-pod peddler Keurig Green Mountain Inc (NASDAQ:GMCR), retailer J C Penney Company Inc (NYSE:JCP), and commodities concern United States Steel Corporation (NYSE:X).
- According to The Wall Street Journal, GMCR has signed a deal with Dr Pepper Snapple Group Inc. (NYSE:DPS) to create capsules of the latter's soda brands for an upcoming cold-beverage machine. Keurig Green Mountain Inc will also reportedly make its own drink pods for the system, as it does for its single-serve coffee brewers. The news has GMCR shares -- which have rallied nearly 60% year-over-year to trade at $127.19 -- up 3% ahead of the bell. On the sentiment front, however, there's still plenty of negativity flowing toward GMCR. For instance, the majority of the 13 analysts covering the stock rate it a "hold" or worse -- which could pave the way for a round of upgrades, and intensify buying power.
- JCP's same-store sales for the holiday period jumped 3.7% year-over-year, pointing to what may turn out to be the best late-year shopping season since 2011. Additionally, the department store operator predicted comparable-store sales growth for the current quarter to register at the upper end of its 2-4% guidance range. On the charts, while the shares are down nearly 20% year-over-year to perch at $6.56, they're pointed roughly 22% higher in electronic trading. This potential bullish gap is bad news for short sellers -- of which there are many. Nearly 36% of JCP's float is sold short, which would take upwards of one week to buy back, at typical daily trading volumes.
- Finally, X plans to lay off more than 700 workers at steel plants in Ohio and Texas, The Wall Street Journal reported. The company said weak market conditions -- led by the downturn in oil prices -- have pressured it to downsize. Also facing pressure are shares of United States Steel Corporation, which have shed 16.5% in the last year to rest at $24.58 (though they've gained 1.7% in electronic trading this morning). Short sellers are banking on additional downside, as nearly 28% of X's float is dedicated to short interest. At the stock's average trading volumes, it would take roughly a week to cover these shorted shares.