Buzz Stocks: Abercrombie & Fitch, EMC, QUALCOMM

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

Mark Fightmaster
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!


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 

Partnercenter