Buzz Stocks: Alcoa Inc,, Inc., and Domino's Pizza, Inc.

Today's stocks to watch in the news include Alcoa Inc (AA),, Inc. (AMZN), and Domino's Pizza, Inc. (DPZ)

Sep 28, 2015 at 10:08 AM
facebook twitter linkedin

U.S. stocks are spiraling lower this morning, as yet another Fed official predicted a 2015 interest rate hike. In company news, today's stocks to watch include aluminum giant Alcoa Inc (NYSE:AA), e-tailer, Inc. (NASDAQ:AMZN), and restaurant chain Domino's Pizza, Inc. (NYSE:DPZ).

  • AA is up 3% this morning at $9.35, after the company announced it will split in two. This is an impressive turnaround for a stock that was staring at a nearly 43% deficit heading into today, and facing increasing pressure from short sellers -- with short interest shooting 18.3% higher during the latest reporting period. These gains are a boon for Alcoa Inc call buyers, of which there have been many in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AA has racked up a 50-day call/put volume ratio of 3.92 -- 3 percentage points from an annual high.

  • AMZN plans to build a tech hub in Detroit, with one high-ranking company official promising its newest venture will "bring more full-time, high-tech jobs to the city." Nonetheless, the shares are down 2.4% at the open, at $511.62. Longer term,, Inc. has been a technical gem, tacking on roughly 65% year-to-date, assisted by a recent bounce off its 20-week moving average. That hasn't stopped option traders from betting bearishly on the outperformer. Specifically, AMZN's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.16 registers above 97% of comparable readings from the past year. At the same time, some of these bets may be the work of shareholders hedging.

  • Finally, DPZ said it plans to take a nearly $6 million pretax liability charge in its quarter ended Sept. 6, which will reduce its quarterly earnings by about six cents. The company's full results are due out the morning of Thursday, Oct. 8. Heading into the event, Domino's Pizza, Inc. has advanced nearly 20% in 2015 to trade at $112.71, yet has failed to win the support of Wall Street. Ten of 13 analysts currently rate the stock a "hold" or worse, and 6.8% of its float is sold short -- representing 7.5 days' worth of pent-up buying activity, at typical volumes.

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!


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1