Buzz Stocks: Tesla Motors Inc, Mobileye NV, and Chipotle Mexican Grill, Inc.

Today's stocks to watch in the news include Tesla Motors Inc (NASDAQ:TSLA), Mobileye NV (NYSE:MBLY), and Chipotle Mexican Grill, Inc. (NYSE:CMG)

Karee Venema

Jul 1, 2016 at 9:54 AM

Stocks are sticking close to the flatline this morning, ahead of a raft of economic data and a long holiday weekend. Meanwhile, among specific equities in focus are electric car concern Tesla Motors Inc (NASDAQ:TSLA), tech stock Mobileye NV (NYSE:MBLY), and burrito chain Chipotle Mexican Grill, Inc. (NYSE:CMG).

TSLA stock is down 1.8% at $208.52, after the National Highway Traffic Safety Administration (NHTSA) said it will investigate a fatal accident involving the firm's Model S sedan. Specifically, the driver was killed while using the "Autopilot" function -- the first known fatality of its kind, according to Tesla Motors Inc. On the charts, TSLA had been battling back since hitting a three-month low on the heels of its buyout bid for SolarCity Corp (NASDAQ:SCTY), but ran out of steam at its formerly supportive 120-day moving average on Thursday. Short interest, meanwhile, edged up in the latest reporting period, and now accounts for a whopping 27.3% of TSLA's available float -- or 7.3 times the average daily trading volume.

MBLY has reversed course after initially falling in sympathy with TSLA, up 1.5% at $46.85. Fresh off yesterday's news of a big blue-chip partnership to develop self-driving car technology, Mobileye NV issued a statement over the Model S fatality, saying its systems "will include Lateral Turn Across Path (LTAP) detection capabilities beginning in 2018, and the Euro NCAP safety ratings will include this beginning in 2020." On the charts, MBLY has surged nearly 99% since hitting a record low of $23.57 in early February -- and analysts are optimistic. Ten out of 12 brokerage firms maintain a "buy" or better rating on the stock, compared to two "holds" and not a single "sell."

CMG's chief creative and development officer, Mark Crumpacker, has been indicted in a cocaine drug ring. This is just the latest PR nightmare for the firm, and Chipotle Mexican Grill, Inc. has since put Crumpacker -- one of its highest-paid executives -- on administrative leave. At last check, shares of CMG were down 0.8% at $399.50, widening their year-over-year deficit to 34.5%. Nevertheless, options traders have initiated long calls over puts at an annual-high clip in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CMG's 10-day call/put volume ratio of 1.36 ranks higher than all other readings taken in the past 52 weeks.

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

Follow @Schaeffers

The $25k Day Trading Barrier is Gone. It's Time to Put Your Capital to Work.

For years, the PDT rule put a major roadblock in front of active traders. The barrier is no longer standing in the way.

But having more freedom doesn't mean every trade is worth taking.

With Dynamite Day Trading Signals, you'll receive up to 2 options trade alerts per week, each targeting 50%+ gains in a single session.

NO holding positions overnight.

NO waiting weeks for a trade to develop.

Just focused options trades designed to capitalize on opportunities as they emerge.

👉 Get Access to Dynamite Day Trading Signals