AMD Stock Rallies, General Electric Hits Another New Low

Arena Pharmaceuticals stock is soaring after an analyst upgrade

Managing Editor
Jul 7, 2017 at 2:40 PM
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U.S. stocks are higher today, rebounding from a rough session yesterday. Among the stocks surging today are Apple supplier Advanced Micro Devices, Inc. (NASDAQ:AMD) and biotech Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), while Dow stock General Electric Company (NYSE:GE) continues to struggle. Here's a quick look at what's moving shares of AMD, ARNA, and GE.

AMD Stock Soars As Semiconductors Rally

AMD stock is up 3.5% to trade at $13.46, among the leaders on the S&P 500 Index (SPX), as the broader semiconductor sector rallies. Advanced Micro Devices stock is up 18% year-to-date, and has rallied nearly 99% in the last nine months. So far in July, AMD shares have added 6.8% -- set to buck their trend of July losses.

There has been frenzied activity in AMD's options pits of late. Open interest has skyrocketed, reaching its highest point in a year, with over 2.2 million contracts outstanding -- roughly 1.5 million of those on the call side. Over 100,000 calls were traded in the first hour in trading, according to Trade-Alert, compared to 22,000 puts. What's more, AMD's 30-day at-the-money implied volatility touched its highest point in a year. 

ARNA Stock Extends Hot Streak, Stays Nasdaq Darling

Arena Pharmaceuticals stock is one of the best on the Nasdaq today, up 9.7% to trade at $19.73, and just off a new annual high of $19.90, after JMP raised its rating on the stock to "market outperform" from "market perform." The biotech stock is now up 39% year-to-date, and has skyrocketed about 75% since hitting a record low of $11.30 on May 18. 

A short squeeze could add fuel to ARNA stock's fire. Short interest represents more than 26% of the equity's total available float, and would take nearly a week to buy back, at Arena Pharmaceuticals' average daily trading volume.

GE Stock Dips Over EU Accusations

General Electric stock is down 1% to trade at $26.01, and earlier touched an annual low of $25.98. It's the second straight day of new lows for GE stock, after the European Commission charged the industrial name with misleading regulators and breaching procedural rules. Fines could be brought down if the charges are upheld. Its been a tough year for GE stock, which has shed 18% year-to-date, while the Dow Jones Industrial Average (DJIA) has rallied 8.4%. GE was the worst stock on the Dow yesterday, dropping 3.8%, and appears poised to repeat such a nefarious distinction today. 

General Electric stock could be vulnerable to downgrades. Of the 10 brokerages covering GE stock, five rate it a "buy" or better. 

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