Alibaba Rallies to New Record After Earnings; Wal-Mart Margins Crush the Dow

Tighter margins at WMT are dragging the broader Dow into the red today

Aug 17, 2017 at 10:41 AM
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U.S. stocks are lower today, following poorly received earnings from two Dow stocks and a stronger-than-expected jobless claims report. Online retail concern Alibaba Group Holding Ltd (NYSE:BABA), big-box retailer Wal-Mart Stores Inc (NYSE:WMT), and shipping company Golden Ocean Group Ltd (NASDAQ:GOGL) are three stocks in the news this morning. Here's a quick look at what's moving shares of BABA, WMT, and GOGL.

Alibaba Soars After Earnings Beat

Alibaba is soaring after a resounding fiscal first-quarter earnings beat this morning, last seen trading up 3.4% at $164.90 -- and fresh off a new record intraday high of $166.85. The shares have now gapped well above recent support at their 10-day and 20-day moving averages, extending their year-to-date gain to nearly 88%. Not surprisingly, BABA stock remains a top pick among analysts, with the e-commerce name boasting 100% "buy" or better ratings from the 16 brokerages tracking its shares.  

WMT Sinks on Contracting Margins

Despite a second-quarter earnings beat, WMT stock is down 2.5% at $78.98, with traders responding to tightening margins and the negative impact of currency fluctuations. Today's bear gap pares Wal-Mart stock's year-to-date gain to 12.5%, and the shares are now testing their 30-day moving average -- which previously cushioned pullbacks in May and June, before briefly acting as resistance in mid-July.

On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), WMT stock carries a 10-day put/call volume ratio of 1.18, which ranks in the 77th percentile of all other ratios in the past 12 months. This means that WMT put options were favored over calls in the weeks leading up to the retail giant's quarterly report.

Analyst Favorite Golden Ocean Slips After Earnings

Golden Ocean shares have dropped 3.9% to trade at $8.31, despite reporting second-quarter adjusted earnings that topped consensus estimates. GOGL stock still sports a year-to-date gain of 84%, though, and remains north of its rising 10-day moving average.

Analysts are unanimously upbeat on GOGL, though the Bermuda-based shipper is lightly covered by the brokerage community. All three analysts following GOGL maintain a "buy" or "strong buy" recommendation.
 

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