5MRD

Buzz Stocks: FedEx, Anheuser Busch, Intra-Cellular Therapies

Today's stocks to watch include FedEx Corporation (FDX), Anheuser Busch Inbev SA (ADR) (BUD), and Intra-Cellular Therapies Inc (ITCI)

Sep 16, 2015 at 10:09 AM
facebook X logo linkedin


U.S. stocks are slightly higher this morning, remaining cautious as the Federal Open Market Committee (FOMC) begins its highly anticipated two-day meeting. In addition to the Fed, traders are digesting the consumer price index (CPI), which showed an unexpected drop in August. Today's equities in focus are package delivery firm FedEx Corporation (NYSE: FDX), beer baron Anheuser Busch Inbev SA (ADR) (NYSE:BUD), and biopharmaceutical concern Intra-Cellular Therapies Inc (NASDAQ:ITCI).

  1. FDX is 2.6% lower at $150.01, after cutting its fiscal-year outlook (subscription required). The freight firm blamed the move on weak demand in its freight segment and higher costs in its ground segment. FedEx Corporation slipped along with the broader equities market in August, but seems to have found a foothold atop its 32-week moving average. Meanwhile, 11 of the 18 brokerages tracking the delivery company rate it a "strong buy," leaving the stock vulnerable to potentail downgrades. As for options players, calls have recently outstripped puts in the option pits, suggesting traders were hoping for a post-earnings move higher.
  • BUD is 6.5% higher at $115.11, after news surfaced that the beverage behemoth has approached SABMiller about a takeover. It is believed the deal will value SABMiller "well in excess" of $75 billion while creating a brewing Goliath that will likely lord over the beverage market. Anheuser Busch Inbev SA (ADR) is now back in the black for 2015, and attempting to take out its 10-week moving average for the first time since late July. Option players are likely cheering the M&A buzz, as the stock's 10-day call/put volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits at 6.86 -- above 69% of all other readings from the past year.

  • ITCI jumped nearly 80% out of the gate -- and hit a record high of $46.68 -- after announcing that its experimental lead drug met its main goal of reducing the severity of schizophrenia symptoms. Intra-Cellular Therapies Inc could see a bit of a short-covering burst, too, as nearly 11% of its float is sold short. At ITCI's average pace of trading, it would take about a week to buy back all these bearish bets. At last check, ITCI was up 75% at $45.77.

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!

 

The $25k Day Trading Barrier is Gone. It's Time to Put Your Capital to Work.

For years, the PDT rule put a major roadblock in front of active traders. The barrier is no longer standing in the way.

But having more freedom doesn't mean every trade is worth taking. 

With Dynamite Day Trading Signals, you'll receive up to 2 options trade alerts per week, each targeting 50%+ gains in a single session.

NO holding positions overnight.

NO waiting weeks for a trade to develop.

Just focused options trades designed to capitalize on opportunities as they emerge.

👉 Get Access to Dynamite Day Trading Signals

MR content page
 
 
 
 

Follow us on X, Follow us on Twitter