Ford Motor, Red Hat, Cara Therapeutics News Today

Ford Motor Company, Red Hat, and Cara Therapeutics are in the news today

Karee Venema
Mar 28, 2017 at 9:18 AM
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Stock futures are trading below fair value this morning, and another loss for the Dow would mark its longest losing streak in 33 years. Among specific stocks in focus are automaker Ford Motor Company (NYSE:F), software developer Red Hat Inc (NYSE:RHT), and biotech Cara Therapeutics Inc (NASDAQ:CARA). Here's a quick roundup of what's moving shares of F, RHT, and CARA.

Ford Motor Shares Jump on Trump Tweet

Shares of F are trading up 0.9% ahead of the bell, after President Donald Trump tweeted the automaker is going to unveil a "major investment" in three of its Michigan plants. Though Ford Motor Company has not yet commented, F stock could certainly use the boost. The shares closed at $11.46 on Monday, down 5.5% on the year, and their lowest settlement since Nov. 4. Ford options traders have kept the faith, though, per the stock's top-heavy 10-day call/put volume ratio of 2.37 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). What's more, this ratio ranks in the 88th annual percentile, meaning calls have been bought to open over puts at a faster-than-usual clip.

Red Hat Stock Signals a Move to Levels Not Seen Since Tech Bubble

Well-received earnings and an upbeat full-year forecast have shares of RHT 5.2% higher in electronic trading, and on their way to levels not seen since February 2000. Adding to the bullish buzz is a round of price-target cuts, including one from Deutsche Bank to $100 from $90. This positive price action is just more of the same for the tech stock, which boasts a 17.9% year-to-date gain -- based on last night's close at $82.20 -- and tapped a 17-year-high in late February. Against this backdrop, short-term options traders have rarely been as call-skewed as they are now. Red Hat Inc's Schaeffer's put/call open interest ratio (SOIR) of 0.39 ranks lower than 97% of all comparable readings taken in the past year.

Drug Data Has Cara Therapeutics Shares Set to Explore New Highs

After settling Monday at $18.15, CARA stock is trading almost 15% higher ahead of the bell -- on track to hit a fresh annual high out of the gate. Boosting the shares is positive mid-stage trial data for its uremic pruritus (UP) treatment -- an itch condition affecting those with chronic kidney disease. CARA stock has already nearly doubled in value in 2017, and topped out at a 52-week peak of $19.44 on March 6. Short sellers are likely getting spooked, too. Short interest on Cara Therapeutics Inc surged 18.3% in the most recent reporting period to a record high 5.4 million shares. 

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