Today's stocks to watch in the news include Alcoa Inc (AA), Apple Inc. (AAPL), and Twilio Inc (TWLO)
U.S. stocks are trading lower, as oil prices retreat and third-quarter earnings season gets started on sour note. Among specific equities in focus today are aluminum stock Alcoa Inc (NYSE:AA), tech giant Apple Inc. (NASDAQ:AAPL), and cloud name Twilio Inc (NYSE:TWLO).
- AA is down 10% at $28.34, after the company posted a third-quarter earnings miss -- just ahead of its planned split, slated for Tuesday, Nov. 1. AA, which underwent a 1:3 reverse stock split last Thursday, is down 5.2% year-over-year, and has consistently run into resistance in the $32-$34.50 range throughout 2016. Option traders had been initiating long calls relative to puts at a faster-than-usual clip ahead of earnings. AA's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 2.98 ranks in the top 10% of its annual range, suggesting option players have likely been betting on a positive post-earnings reaction for Alcoa Inc.
- AAPL is rising after rival Samsung Electronics said it will no longer make its Galaxy Note 7 -- which was repeatedly found to spontaneously catch fire -- with AAPL up 1.5% at $117.85, and fresh off a new 2016 high at $118.69. Additionally, the two smartphone makers will face off in front of the U.S. Supreme Court today in an ongoing patent-infringement battle. On the charts, the tech stock is up 12% in 2016, and AAPL option bulls appear to have been rolling the dice on more gains. At the ISE, CBOE, and PHLX, speculative players have bought to open 2.22 calls for every put over the last two weeks -- a ratio that sits just 4 percentage points from an annual peak.
- Wall Street rookie TWLO is trading 0.7% higher, at $52.40, after the firm issued third-quarter guidance that came in above expectations. Since going public in late June, TWLO has been flying high, more than doubling in value from its June 23 open at $23.99. Analysts remain largely tepid on the stock, with five of six rating Twilio Inc a "hold," without a single "sell" in sight. A round of upgrades could serve as tailwinds for the cloud stock.
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