M&A Buzz Sparks Volatility in the Retail Sector

Michael Kors stock is widening its year-to-date deficit today

Managing Editor
Jul 25, 2017 at 10:20 AM
facebook X logo linkedin


U.S. stocks are mixed this morning, as markets digest the latest round of big-cap earnings. Among specific equities in the news are carmaker General Motors Company (NYSE:GM), as well as retail stocks Michael Kors Holdings Ltd (NYSE:KORS) and Barnes & Noble, Inc. (NYSE:BKS). Here's a quick look at what's moving shares of GM, KORS, and BKS.

GM Stock Swings Lower After Revenue Miss

General Motors stock started the session in positive territory, after the car giant reported earnings of $1.89 per share that exceeded the consensus $1.69 per share estimate. However a revenue miss and production cut have the shares trading down 0.4% at $35.69. Longer term, GM stock has been on the mend since skimming a year-to-date low near $32 on May 25, adding roughly 12% -- with the upside only accelerated by a sharp bounce off its 50-day moving average in late June.

There remains a great deal of pessimism priced into the shares, though. According to data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GM's 10-day put/call volume ratio of 2.67 ranks 5 percentage points from an annual high, meaning puts have been bought to open over calls at a near-annual-high clip. An unwinding of these bearish bets could drive GM stock even higher.

KORS Stock Can't Capitalize on Jimmy Choo Purchase

Michael Kors stock is down 4% to trade at $33.43, after the company said it will buy high-end shoemaker Jimmy Choo for $1.2 billion. Today's negative price action is more of the same for KORS stock, which is down 22.2% year-to-date, with several rally attempts quickly halted by the 80-day moving average. Not surprisingly, most analysts are on the bearish bandwagon, with 15 of 16 analysts rating KORS a "hold" or worse. 

Barnes & Noble Stock Soaring After Activist Investor Recommends Sale

Barnes & Noble stock is up 9.9% to trade at $7.80, on reports activist investor Sandell Asset Management is urging the book retail chain to put itself up for sale. Sandell believes BKS stock could go for at least $12 per share.

Today's rally has BKS trading north of their 80-day moving average for the first time in six months, a trendline that kept a lid on the shares in January. Nevertheless, the stock is still staring at a 30% year-to-date deficit, and hit a five-year low of $6.25 on June 21.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI