Buzz Stocks: Target Corporation, Cisco Systems, Inc., and Lumber Liquidators Holdings Inc

U.S. stocks are set to drop this morning, as traders await the release of the latest Fed meeting minutes. Among equities in focus today are retail stock Target Corporation (NYSE:TGT), Dow component Cisco Systems, Inc. (NASDAQ:CSCO), and flooring specialist Lumber Liquidators Holdings Inc (NYSE:LL). 

• TGT is pointed 5.9% lower ahead of the open, on pace to give up all its year-to-date gains, after closing at $75.48 on Tuesday. The company reported quarterly earnings that topped estimates on the Street, but lowered its full-year guidance. A post-earnings slump seems to be exactly what Target Corporation options traders were hoping for, anyway. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 1.91 stands higher than 91% of all readings in the past year.

• CSCO may have traders on edge ahead of the company's earnings report, due after the bell tonight. Cisco Systems, Inc. announced plans to cut its workforce by more than 14,000 workers, or nearly 20%, over the next few weeks. The shares are essentially unchanged in pre-market trading, but sit on a 14.6% year-to-date lead, as of Tuesday's finish at $31.12. CSCO tapped an eight-year high of $31.25 just last week, and options traders appear to be hoping for a positive earnings reaction tomorrow. Over the past eight quarters, the stock has swung to the upside in the session following its earnings report five times, including the last two quarters. Jefferies is also optimistic, raising its price target this morning to $35 from $30.75. 

• LL is booming 9.4% higher ahead of the bell on news the company won a court ruling in California that alleged Lumber Liquidators Holdings Inc failed to warn consumers about cancer risks related to flooring products containing formaldehyde. As a result, the company will receive a $100,000 reimbursement from the plaintiff, Global Community Monitor and Sunshine Park. This morning's price action is set to send LL into positive year-to-date territory for the first time since before the stock's late-July bear gap. As such, sentiment on Wall Street is decidedly bearish toward LL. At present, not one of the nine analysts tracking the stock recommends buying the shares, which settled Tuesday at $16.28, and nearly one-third of LL's total float is wrapped up in short interest.

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