Buzz Stocks: Seagate Technology PLC, Mondelez International Inc, and Phillips 66

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

by Mark Fightmaster

Published on Sep 10, 2015 at 9:48 AM

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.

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

TOP STOCK PICKS 2020

Access your FREE insider report before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.
Software Stock Could Have Room to Run
The cloud stock could revisit record highs soon
Ulta Stock Moves Lower on New Coronavirus Measures
Ulta has closed all of its stores until further notice
IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.