Buzz Stocks: Goldman Sachs Group, Valeant Pharmaceuticals Intl Inc, and Five Prime Therapeutics Inc

1. GS is 0.9% lower at $177.84 this morning, after missing analysts' third-quarter earnings estimates. Goldman Sachs Group blamed the earnings shortfall on a steep drop in bond trading revenue. Technically, the shares are attempting to stay atop support in the $175-$180 area, which has acted as a foothold in 2015. Option players were stocking up on bullish positions heading into the earnings report. Capitulation from this group could result in bearish headwinds for the shares.

• VRX plunged 7.7% to $163.24, after news surfaced that the pharmaceutical firm received a subpoena from U.S. prosecutors regarding the pricing and distribution of two of its heart drugs. After hitting a record high of $263.81 in early August, Valeant Pharmaceuticals Intl Inc has surrendered 38.1%. Analysts are bullishly aligned toward VRX, as the biotech boasts seven "strong buys" and one "buy," compared to three "holds" and zero "sells." Downgrades from this optimistic bunch -- or a negative reaction to earnings next Monday, Oct. 19 -- could result in more downside pressure for the shares.

• FPRX is 49% higher at $25.20, after the company announced an exclusive licensing agreement to develop and market cancer treatments with Bristol-Myers Squibb Co (NYSE:BMY) (subscription required). Five Prime Therapeutics Inc will receive $350 million up front from BMY, and will be eligible to receive more than $1.3 billion in milestone payments and royalties. This morning's gap higher has the shares trading within a hair's breadth of their all-time high of $28.47, tagged at the start of the year. FPRX could be on the cusp of a short-covering rally, as 16% of the equity's float is sold short, which would take more than eight days to exhaust, at FPRX's average daily trading volume.

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