Today's stocks to watch include Sunedison Inc (SUNE), Freeport-McMoRan Inc (FCX), and Petroleo Brasileiro SA Petrobras (ADR) (PBR)
U.S. stocks have turned lower, after an initial tick higher following
today's nonfarm payrolls report. Among equities in focus are solar energy stock
Sunedison Inc (NYSE:SUNE), natural resource concern
Freeport-McMoRan Inc (NYSE:FCX), and Brazil-based oil interest
Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR).
- SUNE has surged 17% to $1.78, after the company announced a settlement in which it will pay $28.5 million to resolve all disputes concerning the termination of Sunedison Inc's plans to purchase Latin American Power Holding. The stock had been struggling this week, after the company announced a delay in its annual financial report and suspended its quarterly dividend. But today's rally could run out of steam at SUNE's 10-week moving average, which has led the shares more than 94% lower during the past nine months. Considering the stock's long-term struggles, it's not surprising to find 43% of SUNE's available float is wrapped up in short interest.
- FCX is up 2.9% at $9.38, after Lundin Mining Corporation entered an agreement to purchase Freeport-McMoRan Inc's stake in the Timok project for up to $263 million. FCX has been a strong performer 2016, up 36.8%, and a short squeeze could add fuel to the fire. Short interest accounts for more than 18% of the stock's total float. Plus, the shares could stand to benefit from some renewed optimism among analysts, too, as 11 out of 14 brokerages still rate the equity a lukewarm "hold."
- PBR is 11.9% higher at $5.28 today, bringing its year-to-date gain to 20.4%, with Brazil-exposed stocks gaining ground. Brazil's former president, Luiz Inacio Lula da Silva, was detained for questioning this morning, as police investigate a bribery and money laundering scheme that they say financed the ex-leader's rise to power, along with that of his political party. Petroleo Brasileiro SA Petrobras has been making a series of lower highs and lows for the past six years, and touched a 13-year low of $2.71 in late January. But the shares are on pace for a whopping 54% weekly gain, rallying yesterday amid reports that its board approved talks to sell its stake in Petrobras Argentina. PBR could be in for a round of upgrades if the rally continues -- currently, not a single analyst rates the stock better than a "hold."
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!