Buzz Stocks: Caterpillar Inc., Advanced Micro Devices, Inc., and Vitae Pharmaceuticals Inc

Today's stocks to watch include Caterpillar Inc. (CAT), Advanced Micro Devices, Inc. (AMD), and Vitae Pharmaceuticals Inc (VTAE)

Mar 17, 2016 at 9:29 AM

U.S. stocks are set to open lower this morning, as traders react to blue-chip guidance, the latest economic data, and a dismal day in Europe. Among equities in focus are construction equipment producer Caterpillar Inc. (NYSE:CAT), chipmaker Advanced Micro Devices, Inc. (NASDAQ:AMD), and biotech stock Vitae Pharmaceuticals Inc (NASDAQ:VTAE).

Dow component CAT is down 2.1% in pre-market trading, after lowering its first-quarter earnings and revenue guidance, while leaving its full-year outlook unchanged. Caterpillar Inc. is ahead 9.4% in 2016, as of its Wednesday close at $74.34, and recently broke through its 200-day moving average for the first time since late 2014. However, today's expected pullback could delight the growing crop of option bears. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day put/call volume ratio of 3.11 represents an annual high.

AMD is in talks to license its graphics technology to Intel Corporation (NASDAQ:INTC), according to Bloomberg reports, sending the chipmaker up 4.9% ahead of the open, after closing at $2.63 on Wednesday. Advanced Micro Devices, Inc. has been on an upswing since mid-February, and has added nearly 23% already in March. At the moment, 16 out of 20 brokerage firms rate the stock a "hold" or worse, leaving the door open for potential upgrades to propel AMD higher. Also, more than 16% of the security's available float is wrapped up in short interest -- worth almost 14 days of trading, at AMD's typical daily volume -- indicating plenty of buying power on the sidelines.

VTAE is poised to pop a whopping 74.7% at the open, after settling at $4.11 on Wednesday, thanks to a positive mid-stage trial of its experimental psoriasis drug and an upgrade to "buy" from Stifel. Vitae Pharmacueticals Inc gapped lower on earnings earlier this month, and hit a record low of $4.08 yesterday. The stock will have to more than double to make up for that post-earnings bear gap, but if it does, a recent batch of short sellers could begin backing off.

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