Buzz Stocks: Abercrombie & Fitch, EMC, QUALCOMM

Today's stocks to watch include Abercrombie & Fitch Co. (ANF), EMC Corporation (EMC), and QUALCOMM, Inc. (QCOM)

Aug 26, 2015 at 9:37 AM
facebook twitter linkedin


After yesterday's wild ride, U.S. stocks rocketed higher out of the gateAmong the equities in focus are fashion firm Abercrombie & Fitch Co. (NYSE:ANF), as well as IT concerns EMC Corporation (NYSE:EMC) and QUALCOMM, Inc. (NASDAQ:QCOM).

  • Trendy fashion company ANF is up 14.1% at $19.71, after the company blew past earnings expectations. Before today, Abercrombie & Fitch Co. was down nearly 40% in 2015, and touched a post-recession low of $15.42 on Monday. A short-covering rally could propel the stock even higher, as a sizable 33% of ANF's float is sold short. This pessimism was echoed in the options pits yesterday, as ANF saw puts cross at five times their normal rate ahead of the earnings report.

  • According to a report on Re/code, EMC's board of directors is "taking a second and closer look at a proposal under which it would be acquired by VMware." EMC Corporation is a majority owner of VMware, Inc. (NYSE:VMW). Technically, EMC has walked off the veritable ledge along with the broader equities market, and yesterday hit a new two-year low of $22.66. Today, however, the stock is up 5.4% at $23.88. Short-term options players are more call-heavy than usual toward EMC, as the firm's Schaeffer's put/call open interest ratio (SOIR) of 0.38 is lower than 90% of the readings taken in the past 52 weeks. 

  • QCOM is up 3.5% at $55.78, after announcing that it has agreed to sell its UK L-Band spectrum to Vodafone Group PLC (ADR) (NYSE:VOD) and Hutchison 3G UK Ltd in two separate deals. QUALCOMM, Inc. is also just off a new three-year low, touching $52.59 on Monday. As such, the stock entered today's session with a 14-day Relative Strength Index (RSI) of 15 -- well into oversold territory.

Get the skinny on all the biggest stories of the morning… Sign up now to get Schaeffer's Midday Market Check delivered straight to your inbox!

JUST RELEASED: The Complete Guide to Earnings Season Profits

earn21cover"/>


 





 
Special Offers from Schaeffer's Trading Partners