Today's stocks to watch include Regeneron Pharmaceuticals Inc (REGN), Sears Holdings Corp (SHLD), and ITC Holdings Corp. (ITC)
Another sell-off in crude oil could hit U.S. stocks this morning. Meanwhile, drugmaker
Regeneron Pharmaceuticals Inc (NASDAQ:REGN), retailer
Sears Holdings Corp (NASDAQ:SHLD), and utilities concern
ITC Holdings Corp. (NYSE:ITC) are among the equities in focus today.
- REGN is bracing for a sharp drop out of the gate, after the company reported weaker-than-forecast earnings and offered up downbeat guidance for its eye drug Eylea. In pre-market trading, the shares are down 6.5%, putting them on track to notch an annual low at the open after closing yesterday at $390.53. This may not be what short-term speculators were expecting out of Regeneron Pharmaceuticals Inc. Specifically, the stock's Schaeffer's put/call open interest ratio (SOIR) stands at 1.22. While this means put open interest outstrips call open interest on an absolute basis among options with a shelf-life of three months or less, the SOIR actually rests in the call-skewed 31st percentile of its annual range.
- SHLD offered up discouraging news for shareholders earlier, saying same-store sales dropped over 7% in the fourth quarter and offering up a current-quarter sales estimate below expectations. In addition, Sears Holdings Corp announced plans to shutter at least 50 unprofitable stores in the coming months. As such, the stock is down 3.4% ahead of the open, and could make a run at a new 16-year low today. Already, SHLD is down more than 45% year-over-year at $16.73. Meanwhile, short sellers have been upping the bearish ante, with short interest growing 7.5% during the last two reporting periods and now accounting for 27.4% of the stock's total float. At SHLD's average daily volume, it would take over four weeks to cover these bearish bets.
- ITC will be acquired by Canada-based Fortis Inc. in a deal worth $11.3 billion. Under the terms of the agreement, ITC Holdings Corp. shareholders will receive $44.90 per share, or $22.57 in cash plus 0.752 Fortis shares. In pre-market trading, ITC is currently up 2.6% after closing at $39.38 on Monday. Over the past several months, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been placing bullish bets over bearish at a breakneck speed. Specifically, the stock's 50-day call/put volume ratio comes in at a top-heavy 24.51, outstripping nearly three-quarters of all readings from the prior year.
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