Buzz Stocks: McDonald's Corporation, Sprint Corp, and NCI Inc

Today's stocks to watch in the news include McDonald's Corporation (MCD), Sprint Corp (S), and NCI Inc (NCIT)

Jan 23, 2017 at 9:23 AM
facebook twitter linkedin

Dow futures are pointing to a lower start as traders lean toward caution for the first full week of Donald Trump's presidency. Among specific equities in the spotlight are Dow stock McDonald's Corporation (NYSE:MCD), telecommunications specialist Sprint Corp (NYSE:S), and IT interest NCI Inc (NASDAQ:NCIT). Here's a quick look at what's driving MCD, S, and NCIT.

  • MCD is down 0.8% ahead of the bell, despite beating estimates for fourth-quarter earnings and revenue. Potentially weighing on the shares is a 5% year-over-year decline in revenue, with U.S. stores showing weaker performance compared to global growth. Though McDonald's Corporation is up just 3.8% over the past 12 months, at $122.26, optimism has been building among options traders in recent weeks. MCD holds a 10-day call/put volume ratio of 1.27 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- higher than nearly three-quarters of the past year's readings.
  • S is 1% higher in electronic trading on news the company will purchase 33% of Tidal -- the music streaming service headed by artist Jay-Z -- for an undisclosed price. The acquisition will give Sprint Corp CEO Marcelo Claure a seat of Tidal's board. The announcement has yet to win any fans from the brokerage bunch, where 17 out of 19 analysts maintain a "hold" or worse rating. But S could be overdue a round of upbeat attention, considering the shares have climbed steadily for the past 52 weeks, adding more than 257% on the charts, at $8.93, ushered higher by the 40-day moving average. The company is due to report earnings next week.
  • NCIT is set to drop 10.4% at the open after the firm reported an internal investigation, which has so far uncovered that the company's former controller embezzled about $18 million over the last six years. The past year has been choppy for shares of NCI Inc, which finished Friday just above the year-over-year breakeven mark, at $13.95. Meanwhile, some bears may be wishing they had hung around longer. Specifically, short interest in NCIT dropped by nearly 38% during the two most recent reporting periods, and now accounts for just 0.7% of the stock's available float. 

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


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!