Buzz Stocks: Apple Inc., Hologic, Inc., and JD.Com Inc

Today's stocks to watch in the news include Apple Inc. (AAPL), Hologic, Inc. (HOLX), and JD.Com Inc (ADR) (JD)

Jun 20, 2016 at 10:34 AM

WMT
JD
HOLX
AAPL

U.S. stocks are higher amid waning "Brexit" fears. Among the equities in focus today are tech giant Apple Inc. (NASDAQ:AAPL), biotech stock Hologic, Inc. (NASDAQ:HOLX), and Chinese e-tailer JD.Com Inc (ADR) (NASDAQ:JD).

AAPL is up 1.3% at $96.52, following a mixed bag of news from the company, including: reports that it will not be providing any support to the upcoming Republican convention in light on Donald Trump's controversial comments on issues such as immigration and minorities; concerns about Apple Inc. losing its weighting in the Russell 2000 Index (RUT); and reports that AAPL could open its first stores in India, after the Indian government loosened foreign retailer requirements. AAPL is down nearly 25% year-over-year, and the shares touched a two-year low in early May, following a historic losing streak. Option traders seem increasingly wary of AAPL, with the stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) of 0.72 sitting higher than 94% of all other readings from the past year. However, analysts remain optimistic towards the stock, with 25 of 30 offering up a "buy" or better position, and only one "sell" recommendation to be found. Should AAPL continue to struggle, a flood of downgrades could exacerbate selling pressure.

HOLX is up 1.2% at $34.20, after the Food and Drug Administration (FDA) granted the company emergency authorization for its Zika virus test. HOLX has been struggling to recover after a post-earnings drop in late April, and the stock is currently down 11.8% for the year, struggling to overtake its 20-week moving average. Option buyers are likely cheering today's announcement, with HOLX's 50-day ISE/CBOE/PHLX call/put volume ratio of 11.82 sitting in the 92nd percentile of its annual range, implying a healthier-than-usual appetite for bullish bets over bearish in the past 10 weeks.

JD is up 5.6% at $21.26, after The Wall Street Journal reported that the e-tailer is in talks with Wal-Mart Stores, Inc. (NYSE:WMT) to purchase Yihaodian, WMT's Chinese online sales platform (subscription required). JD.Com Inc (ADR) touched a two-year low just last week, and has dropped nearly 40% year-over-year. Prior to today, JD's 14-day Relative Strength Index (RSI) was just above "oversold" territory, suggesting a short-term bounce may have also been in the cards for the troubled e-tailer.

Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!