Starbucks, Vodafone, Tempur Sealy News Today

Today's stocks to watch in the news include Starbucks Corporation (SBUX), Vodafone Group Plc (ADR) (VOD), and Tempur Sealy International Inc (TPX)

Jan 30, 2017 at 9:27 AM
facebook twitter linkedin


U.S. stocks are set for a lower open following President Trump's immigration ban. Among specific equities in the spotlight are coffee expert Starbucks Corporation (NASDAQ:SBUX), telecommunications stock Vodafone Group Plc (ADR) (NASDAQ:VOD), and mattress maker Tempur Sealy International Inc (NYSE:TPX). Here's a quick look at what's driving SBUX, VOD, and TPX.

CEO Comments Fail to Boost Starbucks

After dropping 4% Friday on a disappointing earnings report, SBUX is 0.8% lower ahead of the open following comments from CEO Howard Schultz, who said the company will hire 10,000 refugees around the world over the next five years. The plan comes as a response to President Trump's executive order banning refugees from seven largely Muslim countries from entering the U.S., signed over the weekend. Starbucks Corporation stock has been mostly higher since Election Day, and Friday's finish at $56.12 has the shares holding onto support above the 200-day moving average. But the stock could be in trouble should analysts lose faith. At present, 16 out of 21 brokerages rate SBUX a "buy" or better, with not one giving a "sell" recommendation.

Vodafone Inches Higher on M&A Chatter

VOD is 1.9% higher in electronic trading on news the company is involved in M&A talks with Idea Cellular Ltd regarding its India unit. Vodafone Group Plc has shed almost 25% year-over-year, at $24.58, and is currently perched just above its November six-year low. Options traders have largely been betting on a recovery for VOD, per the stock's 50-day call/put volume ratio of 5.70 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- which is higher than 94% of the past year's readings.

Mattress Firm Fallout Sends Tempur Sealy Spiraling

After terminating its agreement with Mattress Firm Holding Corp (NASDAQ:MFRM) -- the company's top customer -- TPX is set to drop 26% of its value at the opening bell. The move also caused the mattress specialist to lower its sales outlook for the 2016 fiscal year. Also weighing on the shares is a downgrade to "underperform" from "outperform" at Raymond James. Tempur Sealy International Inc was already off to a rough start in 2017, down 7.5% at $63.19, as of Friday's close, and on track to open at its lowest level since 2014. Short sellers aren't likely to mind, however. Nearly 29% of TPX's total float is dedicated to these bearish bets, accounting for almost three weeks' worth of trading, at the stock's typical daily pace. 

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

Winning With Weekly Options

1606854690

  


 
Special Offers from Schaeffer's Trading Partners