XO Group Inc. (XOXO) advances after Supreme Court decision on same-sex marriage
This morning, the Supreme Court of the United States (SCOTUS) issued a ruling that same-sex partners have a constitutional right to marry -- doing away with state bans against the practice. Not only did SCOTUS' decision cause a flurry of news across the various major news outlets, but it is also causing a bit of a bump for XO Group Inc (NASDAQ: XOXO). The parent company for The Knot, The Bump, and The Nest advanced nearly 4% in the immediate wake of the announcement, with some firms estimating the ruling will translate into a "gay-marriage stimulus package."
The shares have backed off a bit, but are still about 1.1% higher on the day, at $16.23. XOXO's site director told MarketWatch, "As we celebrate the Supreme Court's decision to legalize marriage equality for the entire country, our study shows that LGBTQ couples are hosting intimate weddings, with a focus on the guest experience and lots of personalized details."
Technically, if you want the definition of a stock caught in a sideways trend, you should look to XOXO. The stock has spent most of 2015 bumping into resistance at $18, only to find support in the $15.50-$16 region. What may be encouraging is the stock's 10-month moving average is moving into the $15.50 area, and could help the shares break out.
On the sentiment side, however, Wall Street isn't optimistic. The stock's Schaeffer's put/call open interest ratio (SOIR) of 1.05 stands higher than 92% of all other readings from the past year, suggesting short-term option traders are
more put-heavy than usual. Likewise, short interest on XO Group Inc (NYSE:XOXO) surged 34.2% during the past two reporting periods.
Meanwhile, other stocks that saw post-SCOTUS jumps include jewelry retailers Blue Nile Inc (NASDAQ:NILE) and Signet Jewelers Ltd. (NYSE:SIG), as well as luxury goods titan Tiffany & Co. (NYSE:TIF).