Today's stocks to watch in the news include Dollar General Corp. (DG), Ford Motor Company (F), and Youku Tudou Inc (ADR) (YOKU)
U.S. markets are poised to give back a portion of yesterday's gains this morning, as traders wait to digest updates on motor vehicle sales and factory orders. In company news, today's stocks to watch include discount retailer Dollar General Corp. (NYSE:DG), Detroit darling Ford Motor Company (NYSE:F), and China-based Internet TV provider Youku Tudou Inc (ADR) (NYSE:YOKU).
- DG reported better-than-expected first-quarter earnings -- though revenue came in slightly below expectations -- and also upped its full-year guidance. As such, the shares are up 5% in pre-market trading, after closing at $72.81 yesterday. Longer term, Dollar General Corp. has performed well, adding more than 34% year-over-year, but recently slipped below its historically supportive 80-day moving average. Meanwhile, recent options traders have been banking on downside, per data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). DG's 10-day put/call volume ratio across this trio of exchanges is 1.00, which ranks in the top quartile of its annual range.
- F announced it will shorten its summer shutdown at a number of manufacturing plants, allowing the company to build an additional 40,000 trucks and SUVs -- including its popular F-150 pickup. However, this positive development has failed to boost the stock ahead of the bell, as it's poised for a slightly lower open. In 2015, Ford Motor Company shares have spun their wheels -- down nearly 1% at $15.36 -- and are staring up at two potential layers of technical resistance.Options traders have caught on to this bearish set-up. During the last 10 weeks at the ISE, CBOE, and PHLX, F has racked up a put/call volume ratio of 0.38 -- higher than 86% of comparable readings from the past 12 months. Separately, F said domestic vehicle sales declined 1% in May on a year-over-year basis.
- Finally, YOKU is partnering with Walt Disney Co (NYSE:DIS) to become the exclusive online marketing partner in China for the latter's Marvel brand. "These partnerships, like the one with Disney, are multifold and give Youku Tudou the opportunity to use its strengths to further its business model and drive future revenue streams through high-quality content, innovative marketing efforts, and merchandising channels," said Youku Tudou Inc CEO Victor Koo. The move is being met with enthusiasm on the Street, as YOKU has gained 1.7% ahead of the bell -- looking to add to its more than 55% year-to-date lead, at $27.64. Short-term traders, however, have been extremely put-skewed toward the equity. YOKU's Schaeffer's put/call open interest ratio (SOIR) of 1.67 sits just 3 percentage points from an annual peak.