Buzz Stocks: Sears Holdings, McDonald's, MaxLinear

Today's stocks in the news include SHLD, MCD, and MXL

Jun 8, 2015 at 10:01 AM
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With no major economic reports on the day's docket, U.S. traders are keeping an eye trained on developments overseas and Apple Inc.'s (NASDAQ:AAPL) developer conference. Meanwhile, among today's stocks in the news are big-box retailer Sears Holdings Corp (NASDAQ:SHLD), fast-food giant McDonald's Corporation (NYSE:MCD), and semiconductor specialist MaxLinear, Inc. (NYSE:MXL).

  • SHLD is off 0.1% at $40.70, after the firm reported a narrower-than-expected first-quarter loss and announced plans to generate roughly $2.6 billion from spinning off more than 200 stores into a real estate investment trust (REIT). Sears Holdings Corp has advanced more than 23% in 2015, but has struggled to take out the $44-$45 area. On the sentiment front, short interest accounts for more than three-quarters of the stock's total available float, representing more than a month's worth of pent-up buying demand, at the equity's average daily volume.

  • MCD is 0.1% lower at $95.46, with traders digesting the company's second-to-last ever monthly sales report. The blue chip said global same-store stales dipped a slimmer-than-expected 0.3% in May, but fell a bigger-than-anticipated 2.2% domestically. McDonald's Corporation has ticked nearly 2% higher year-to-date, with recent pullbacks contained by its 200-day moving average. Analysts are skeptical of the stock, as 15 out of 23 consider MCD a "hold" or worse.

  • MXL jumped to a four-year high of $11.40 out of the gate, and was last seen 2.3% higher at $10.95, after Soros Fund Management reported a 5% passive stake in the firm. The shares have surged more than 50% in 2015, and their 14-day Relative Strength Index (RSI) is now in overbought territory. Short sellers have been hitting the bricks, with short interest down 24.3% during the most recent reporting period. Still, it would take about a week to buy back the remaining shorted shares, at MaxLinear, Inc.'s average daily trading volume, suggesting an extended short squeeze could propel the stock even higher.
 

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