Buzz Stocks: Tesla Motors Inc, Twitter Inc, and Merrimack Pharmaceuticals Inc

Today's stocks to watch in the news include Tesla Motors Inc (NASDAQ:TSLA), Twitter Inc (NYSE:TWTR), and Merrimack Pharmaceuticals Inc (NASDAQ:MACK)

Josh Selway
Oct 3, 2016 at 9:53 AM
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U.S. stocks are lower to start the new quarter, as traders look to a slew of economic data on tap. Among specific equities on focus are electric automaker Tesla Motors Inc (NASDAQ:TSLA), social media concern Twitter Inc (NYSE:TWTR), and biotech stock Merrimack Pharmaceuticals Inc (NASDAQ:MACK).

  • TSLA is up 3.7% at $211.50, after the electric automaker announced third-quarter deliveries rose 70% year-over-year, to a new record, and production was up by 37%. In addition, TSLA also reiterated its production forecast of 50,000 vehicles for the second half of 2016. In spite of today's move, TSLA is still down 12% so far this year, spending much of 2016 embroiled in controversy about the Autopilot function and purchase of SolarCity Corp (NASDAQ:SCTY). Short sellers have been keen on the stock in recent weeks, with short interest up 6.4% over the last reporting period, now accounting for 23.9% of Tesla Motors Inc's float, which would take over 6.7 days of trading to cover, at TSLA's average daily volume.

  • TWTR is popping, currently up 3.3% at $23.80, amid reports that tech giant Alphabet Inc (NASDAQ:GOOGL) may be mulling a bid for the social media stock. TWTR jumped last week on M&A speculation -- with Walt Disney Co (NYSE:DIS) and salesforce.com, inc. (NYSE:CRM) emerging as favorite potential suitors -- overtaking its 320-day moving average for the first time since April 2015, and breaking out above the $21 level that contained the shares for much of 2016. In the option pits, however, bearish appetites have been stronger than usual, with Twitter Inc's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 0.52 sitting just 7 percentage points from an annual peak.
  • MACK is taking a tumble this morning, down 5% at $6.03, after the biopharmaceutical firm said it would be undertaking a major restructuring effort, cutting 22% of its workforce. In addition, MACK's CEO Robert Mulroy announced his resignation, effective immediately. Interim President and CEO Gary Crocker said the restructuring would help Merrimack Pharmaceuticals Inc unlock the company's "tremendous inherent value." MACK has lost one-third of its value year-over-year, with rally attempts contained by its 200-day moving average since July 2015. Option players have remained bullish towards the stock, however, with MACK's 50-day ISE/CBOE/PHLX call/put volume ratio at a whopping 36.38 -- in the 77th percentile of its annual range.

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