Amazon Partnership Has This Stock Soaring

Philip Morris stock is lower after the cigarette company cut guidance

Managing Editor
Jul 20, 2017 at 10:03 AM
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U.S. stocks are higher this morning, building off of yesterday's records. Among specific equities on the move are cigarette stock Philip Morris International Inc. (NYSE:PM), equipment rental stock United Rentals, Inc. (NYSE:URI), and retailer Sears Holdings Corp (NASDAQ:SHLD). Here's a quick look at what's moving shares of PM, URI, and SHLD.

Philip Morris Stock Cools Off After Earnings Miss, Guidance

Philip Morris stock is down 3% to trade at $117.95, after the company's earnings fell short of expectations. Philip Morris also cut its guidance for the year. Prior to today's pullback, PM stock was enjoying a pretty solid year otherwise, adding 30% year-to-date and reaching a new record high of $123.55 on June 20. The shares could now test support at their 60-day moving average, which has acted as support for most of the year.

In the options pits, traders have shown a bias toward calls lately. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), PM's 50-day call/put volume ratio 1.23 is in the 96th percentile of its annual range.

United Rentals Stock Cruising After Earnings Beat

United Rentals stock is up 5.3% to trade at $125, after the rental company reported earnings that topped expectations and lifted its full-year guidance. The news today has URI stock barreling past the $120 level, and filling in a bear gap from mid-April. A round of upgrades could propel URI shares even higher. Of the 12 brokerages covering URI stock, seven rate it a "hold."

Sears Stock Surging After Amazon Boost

Sears stock is up 16% to trade at $10.09, after the retail name announced plans to sell its flagship Kenmore products on Amazon. The appliances will be integrated with Amazon's Alexa to boost the 'smart home' brand. It's been a volatile year for SHLD stock, but today's bull gap places the shares north of their 200-day moving average for the fist time since April. Sears is just the latest stock to partner with Amazon, with Nike recently saddling up to the e-tail giant.

Short sellers will undoubtedly be keeping an eye on Sears stock. Over 13 million shares of the stock are sold short, accounting for a whopping 65% of its total available float. At SHLD's average trading volume, it would take more than nine sessions to repurchase all of those pessimistic positions.

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