Today's stocks to watch in the news include Twitter Inc (TWTR), Tesla Motors Inc (TSLA), and NXP Semiconductors NV (NXPI)
U.S. stocks are higher as traders digest some unexpected earnings wins, and look ahead to a big day of earnings to come. Among equities in focus today are social media concern Twitter Inc (NYSE:TWTR), electric auto maker Tesla Motors Inc (NASDAQ:TSLA), and semiconductor stock NXP Semiconductors NV (NASDAQ:NXPI).Here's a quick look at what's driving TWTR, TSLA, and NXPI.
- A surprise earnings beat is helping TWTR trade higher this morning, with the social media stock currently up 2% at $17.64. In addition to revenue and earnings that came in above analyst expectations, TWTR also announced it would be cutting 9% of its global workforce as a cost-saving measure. Today's boost was a badly needed change of pace for Twitter Inc, the shares of which are down over 42% year-over-year, and have shed nearly 30% since their M&A-inspired peak of $25.25, touched earlier this month. Speaking of M&A, Twitter CEO Jack Dorsey wouldn't comment on the recent speculation, with the latest round of buyout buzz involving Walt Disney Co (NYSE:DIS). Analysts are skeptical of the social media stock, with just four out of 25 offering up "buy" or better endorsements.
- TSLA is also trading higher on an earnings beat, up 5.2% at $212.67. The electric automobile maker recorded a quarterly profit for the first time in three years, surprising analysts and earnings price-target bumps by RBC and Goldman Sachs, to $220 and $190, respectively. Tesla Motors Inc shares are still down more than 11% since the beginning of 2016, and are struggling to surmount their 200-day moving average, which hasn't been toppled since August. There's likely some TSLA option buyers cheering this unexpected win, with TSLA's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 1.32 sitting just 8 percentage points from an annual peak.
- NXPI is up 1.8% at $100.44, after news that chipmaker QUALCOMM, Inc. (NASDAQ:QCOM) will be purchasing NXPI for a total of $38 billion. NXPI now sits up over 19% so far this year -- mostly thanks to a massive M&A-inspired bull gap in late September -- and notched an annual high of $107.54 just last week. Recent option buyers are likely cheering this announcement, with NXP Semiconductors NV's (NASDAQ:NXPI) 10-day call/put volume ratio at the ISE/CBOE/PHLX of 4.86 sitting at an annual peak.
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