Buzz Stocks: Microsoft Corporation, Reynolds American, Inc., and Coach Inc

Today's stocks to watch in the news include Microsoft Corporation (NASDAQ:MSFT), Reynolds American, Inc. (NYSE:RAI), and Coach Inc (NYSE:COH)

Oct 21, 2016 at 9:50 AM
facebook X logo linkedin

U.S. stocks are down as earnings continue to roll in. Among equities in focus today are tech stock Microsoft Corporation (NASDAQ:MSFT), tobacco company Reynolds American, Inc. (NYSE:RAI), and luxury retailer Coach Inc (NYSE:COH). Here's a quick look at what's driving MSFT, RAI, and COH.

  • MSFT is flying high after an earnings win, trading up 5.3% at $60.30, beating its previous all-time high of $59.97, notched in 1999. Since reporting earnings last night, MSFT has received an upgrade to "buy" from "hold" by Wunderlich, in addition to no fewer than 14 price-target hikes, including a raise to $70 from $60 by Wunderlich. Of course, analysts were already keen on the stock, with 17 of 24 rating the shares a "buy" or better, and with only one "sell" in sight. However, today's rally could have recent Microsoft Corporation call writers nervous.

  • RAI is also soaring this morning, trading up 19.3% at $56.28, after news that British American Tobacco PLC (ADR) (NYSEMKT:BTI) offered to purchase RAI for $47 billion, or $56.50 per share, although BTI already owns 42% of RAI. RAI said its board will need to evaluate the offer. Today's jump puts Reynolds American, Inc. shares up over 20% so far in 2016, and at a new all-time high. Some option bears are likely kicking rocks after this news, with RAI's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 1.34 sitting higher than 78% of all other readings from the past year.
  • COH is down 0.6% at $35.69, giving up all of its pre-market gains, after rumors of merger talks with Burberry were deniedCOH has given up 18.3% since its late July annual high of $43.71, and is now testing support near $35, which marks a 50% retracement of its rally from late October 2015 to July 2016. Some COH option players may breathe a sigh of relief if the rumors turn out to be false, given that Coach Inc's Schaeffer's put/call open interest ratio (SOIR) of 1.41 sits in the 97th percentile of its annual range, suggesting short-term option players have had a stronger-than-usual put bias as of late. 

Stay on top of overnight news & big morning movers. Sign up now for Schaeffer's Opening View.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI