China Buzz Lifts Tesla Stock; Short Sellers Rejoice as Hasbro Slips

Meanwhile, biotech stock GBT is tanking

by Josh Selway

Published on Oct 23, 2017 at 9:17 AM

U.S. stocks are pacing for a positive open this morning, as the focus stays on corporate earnings. Among the stocks making moves this morning are toy company Hasbro, Inc. (NASDAQ:HAS), electric vehicle maker Tesla Inc (NASDAQ:TSLA), and biotech stock Global Blood Therapeutics Inc (NASDAQ:GBT). Here's a closer look at what's moving shares of HAS, TSLA, and GBT.

Hasbro Earnings Forecast Hurt By Toys 'R' Us

Shares of Hasbro are down 4.2% at $94.10 after the toymaker said the bankruptcy of Toys 'R' Us will have a negative impact on its holiday sales. While the equity is still comfortably higher on a year-to-date basis, it's fallen hard since peaking above $116 in July, and the 200-day moving average has provided stiff resistance over the past two months. Short sellers are gearing up for more losses, too, as short interest on HAS stock jumped by almost 23% over the past two reporting periods. 

Tesla Reportedly Reached Deal to Build Cars in China

Tesla stock is up 1.3% at $349.63 followings reports that the company will be building a car factory in China. Despite closing below the trendline on Friday, TSLA shares have been riding their 100-day moving average higher since their sharp pullback in late-June, early July. Overall, the security sports a year-to-date advance of almost 62%, hitting a record high of $389.61 about a month ago. 

While many analysts remain firm Tesla bears, options traders have been bullish lately across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The stock has a 10-day call/put volume ratio of 1.24 across these exchanges, ranking in the 80th annual percentile. Simply put, call buying has been more popular than normal lately. 

GBT Stock Sinks After Study Halted

Global Blood Therapeutics stock is down 9.4% at $298.50, after the firm said it will discontinue its study on GBT440, a treatment for idiopathic pulmonary fibrosis. Despite this, the shares -- which have been trading in a tight range for months -- are so far still trading above their 200-day moving average, which has acted as strong support since August. And it'll be hard for shareholders to complain, since GBT was trading below $15 a share coming into 2017. It'll be worth watching if analysts turn on the biotech, however. At the moment, all nine covering brokerage firms consider it a "buy" or "strong buy." 

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