Buzz Stocks: Seagate, Mondelez, and Phillips 66

Today's stocks to watch include Seagate Technology PLC (STX), Mondelez International Inc (MDLZ), and Phillips 66 (PSX)

Sep 10, 2015 at 9:48 AM
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U.S. stocks are continuing continuing yesterday's downtrend, following Asia into the red. Among the equities in focus are electronic data storage firm Seagate Technology PLC (NASDAQ:STX), food and beverage baron Mondelez International Inc (NASDAQ:MDLZ), and refining concern Phillips 66 (NYSE:PSX).

  1. STX is down 2.2% at $48.98, after announcing major job cuts. Specifically, Seagate Technology PLC is going to cut 1,050 jobs (subscription required), or 2% of its global workforce, because of weak demand. Technically, STX has shed more than 26% in 2015, but short-term option players are more call-heavy than usual. The firm's Schaeffer's put/call open interest ratio (SOIR) of 0.76 is lower than 72% of the readings taken during the past week. If this optimism unwinds, it could apply more downside pressure to the already-slumping shares.
  • MDLZ is trading 0.1% lower at $41.94, after the food firm reaffirmed its 2015 outlook and 2016 margin target. Mondelez International Inc also plans to have half its portfolio contain healthy snacks within the next five years. Although MDLZ has performed well on the charts, thanks in part to support from its 20-week moving average (and Bill Ackman), near-term option players are more put-biased than normal. The stock's SOIR checks in at 1.37, higher than 88% of the readings taken during the past 52 weeks.

  • PSX is in the news this morning, as Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRK.A) reported that it increased its stake in the company to 61.5 million shares (an increase of 6%). BRK.A's stake was already sizable, thanks to a mass purchase last month. Technically, the shares fell with the broader market in mid-August, but have since muscled back into a familiar trading range. The stock was last seen 0.3% higher at $80.91. Phillips 66's 50-day put/call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 2.40 is higher than 86% of the readings taken in the past year, suggesting option buyers aren't as bullish as Buffett.

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