Today's stocks to watch in the news include Starbucks Corporation (SBUX), Regeneron Pharmaceuticals Inc (REGN), and Herbalife Ltd. (HLF)
A disappointing jobs report is weighing on U.S. stocks ahead of the bell. Among specific equities in focus today are coffee giant Starbucks Corporation (NASDAQ:SBUX), drug stock Regeneron Pharmaceuticals Inc (NASDAQ:REGN), and multi-level marketing guru Herbalife Ltd. (NYSE:HLF). Here's a quick look at what's driving SBUX, REGN, and HLF.
- SBUX is pointed 1.6% higher pre-market, after the company reported better-than-expected earnings and sales, driven by growth in Asia. Wall Street apparently isn't impressed, though, with J.P. Morgan Securities, Barclays, BMO, and Piper Jaffray each dishing out a price-target cut. This represents a break from the historically bullish norm among the brokerage crowd, as 16 of 21 analysts rate Starbucks Corporation a "buy" or better, versus five "holds" and zero "sells." That's not to say the shares have merited the upbeat attention. In fact, SBUX stock has struggled badly long term, down nearly 14% year-to-date at $51.77.
- REGN also reported better-than-expected earnings, but warned of slowing sales growth on its flagship macular degeneration drug, Eylea. The mixed news has pressured the stock 2.4% lower ahead of the open, putting it on pace to open at a new two-year low. Last night, Regeneron Pharmaceuticals Inc settled at $336.01, already down 38% in 2016. Understandably, short sellers have been eager to bet against the shares. In fact, at REGN's average daily trading rate, it would take over a week for these bears to cover their short stock positions.
- Carl Icahn reported late yesterday in an SEC filing that he recently upped his stake in HLF to 23.1% from 20.8%. Ahead of the open, though, the stock has failed to get a boost, still sitting at Thursday's close of $56.08. Technically speaking, Herbalife Ltd. has pulled back sharply from its mid-July two-year high of $72.22, down over 22%. As such, options traders have been blazing a bearish path of late. HLF's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 2.35 ranks in the high 85th percentile of its annual range.
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