Today's stocks to watch include McDonald's Corporation (MCD), Valeant Pharmaceuticals Intl Inc (VRX), and Sears Holdings Corp (SHLD)
U.S. stocks are mixed this morning,
after the latest round of blue-chip earnings. While fast-food chain
McDonald's Corporation (NYSE:MCD) seems to be bucking the negative earnings trend, biotech
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and retailer
Sears Holdings Corp (NASDAQ:SHLD) are also among today's equities in focus.
- Dow stock MCD is 0.7% higher at $126.70 -- eyeing yet another all-time high -- after first-quarter earnings exceeded expectations, thanks in large part to the success of all-day breakfast. McDonald's Corporation hit a record peak of $129.80 earlier this week, but could soar even higher with an unwinding of bearish sentiment. More than 60% of analysts still recommend holding or selling the stock. This morning, in fact, Nomura boosted its price target on the shares to $142 from $138. And in the options pits, traders have been more skeptical than usual. A capitulation from option bears could create fresh tailwinds for MCD stock.
- SHLD has popped 2.5% to $18.46 on reports that it will shutter 78 stores -- about 5% of its total store base -- between late July and mid-September this year. According to CEO Eddie Lampert, this is a result of "aggressive actions" the firm must take to "restore Sears Holdings to profitability." The stock is off 10% year-to-date, hitting a 12-year low of $14.05 just weeks ago, and has been more recently been running into resistance at its 120-day moving average. Option traders, meanwhile, have shown a distinct preference for long calls over puts of late. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Sears Holdings Corp has a 10-day call/put volume ratio of 4.59 -- higher than 83% of all readings in the last 12 months.
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