Altria, Amazon, Catabasis News Today

Today's stocks to watch in the news include Altria Group Inc (MO),, Inc. (AMZN), and Catabasis Pharmaceuticals Inc (CATB)

Feb 1, 2017 at 10:02 AM
facebook twitter linkedin

U.S. stocks are higher, after a better-than-expected ADP employment report. Among specific equities in the spotlight are tobacco company Altria Group Inc (NYSE:MO), e-tail behemoth, Inc. (NASDAQ:AMZN), and biotech stock Catabasis Pharmaceuticals Inc (NASDAQ:CATB). Here's a quick look at what's driving MO, AMZN, and CATB.

Altria Falls On Forecast

MO is trading down 2% at $69.76, after announcing weaker-than-expected fourth-quarter sales and issuing 2017 guidance under analyst expectations. Still, Altria shares have managed to recover more than 14% from their post-election lows, and just yesterday notched a record high of $71.44. In the option pits, near-term traders have been more call-skewed than usual, with Altria Group Inc's Schaeffer's put/call open interest ratio (SOIR) of 0.55 sitting in just the 19th percentile of its annual range.

Amazon to Open New Cincinnati Shipping Hub

AMZN -- which reports earnings tomorrow -- is up 0.8% at $830.25, following news that the e-tail giant will open a new air cargo hub at the Cincinnati/Northern Kentucky airport, bringing the company one step closer to its goal of becoming an autonomous force among shipping companies. The project will cost around $1.5 billion, and will create upwards of 2,700 new jobs. AMZN is up more than 43% year-over-year, though the shares have stalled near the $840-$850 mark, home to AMZN's all-time high, notched in early October. Analyst sentiment towards, Inc. is mostly upbeat, with 28 of 31 rating the shares a "buy" or better.

Catabasis Plunges On DMD Drug Disappointment

CATB is down a whopping 70% at $1.22 -- and just off a new all-time low of $1.08 -- after the biotech reported disappointing mid-stage trial results for its Duchenne muscular dystrophy (DMD) drug, edasalonexent. Catabasis Pharmaceuticals Inc shares also received a downgrade to "market perform" from "outperform" from Cowen and Company, as well as a brutal 87% price-target cut -- to $4 from $30. Likewise, Oppenheimer cut its target price on the shares to $11 from $18. Before today's drop, the shares had enjoyed a floor near the $3.50 mark, though the stock is now down more than 80% year-over-year. A number of short sellers are likely cheering today's drop, however, with CATB's short interest up more than 24% in the last two reporting periods.

Get a jump-start on the day's stock market news with Schaeffer's free Opening View newsletter.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners