Buzz Stocks: Alibaba Group Holding Ltd, Johnson & Johnson, and Ciena Corporation

Today's stocks to watch include Alibaba Group Holding Ltd (BABA), Johnson & Johnson (JNJ), and Ciena Corporation (CIEN)

Jun 2, 2016 at 10:31 AM
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U.S. stocks are lower, after the Organization of the Petroleum Exporting Countries (OPEC) chose to stand pat on its current crude output policy. Among equities in focus today are e-tail giant Alibaba Group Holding Ltd (NYSE:BABA), healthcare product company Johnson & Johnson (NYSE:JNJ), and tech stock Ciena Corporation (NYSE:CIEN).

  • BABA is up 0.6% at $77.12, after Singapore state-owned investment firms Temasek Holdings and GIC purchased $1 billion in BABA stock, a day after SoftBank announced it would be selling $8.9 billion in BABA shares. The stock has recovered by nearly 30% since hitting a year-to-date low of $59.25 in mid-February, but has failed to make a convincing move north of the $80-$82 region. Meanwhile, BABA options players have been increasingly skeptical over the last several weeks, with BABA's 10-day put/call volume ratio of 0.80 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sitting in the 85th percentile of its annual range. Analysts are still keen on Alibaba Group Holding Ltd, though, with 16 of 19 ranking BABA as a "buy" or better, and without a single "sell" in sight.

  • CIEN is up 12.3% at $19.95, after delivering fiscal second-quarter earnings that beat expectations. Ciena Corporation CEO Gary B. Smith attributed the impressive performance to "investments we've made to diversify our business," including expansion in key geographical locations. CIEN shares hit an annual low of $15.62 in mid-May, but have since managed to recover with the support of its 10-day moving average. Today's bull gap has the stock facing off with its 200-day moving average -- a trendline not conquered on a closing basis since Dec. 9. Short sellers are likely kicking rocks after this latest earnings reaction, with 10.8% of the stock's float currently sold short, an amount that would take over a week of trading to cover, at CIEN's average daily volume. 

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