The Dow Stock at a 17-Year High on AMD Buzz

A short squeeze could lift Seagate Technology even higher

Patrick Martin
Oct 23, 2017 at 2:57 PM
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Stocks are modestly lower this afternoon, though all three major U.S. benchmarks hit record highs earlier. Among specific names making big moves, data storage specialist Seagate Technology PLC (NASDAQ:STX) and Dow stock Intel Corporation (NASDAQ:INTC) are higher, while materials expert Arconic Inc (NYSE:ARNC) is plummeting after earnings. Here's a quick look at what is moving shares of STX, INTC, and ARNC.

Seagate Technology Stock Soars After Earnings Beat

Seagate Technology reported adjusted first-quarter earnings of 96 cents per share this morning -- 10 cents above the consensus Wall Street estimate. Revenue also beat the forecast, and, as a result, STX stock is up 12.2% to trade at $39.22. The burst today has the shares attempting to close a late-July earnings-induced bear gap, and earlier made a brief appearance above their 200-day moving average for the first time since late June. 

A short squeeze could provide the equity with some additional tailwinds. Short interest decreased by nearly 10% during the last two reporting periods, but the 40.72 million shares still sold short represent a healthy 14% of STX's total available float. It would take more than eight days for shorts to fully cover their positions, at the stock's average trading volume.

Intel Stock Gets a Boost from Citi, BofA

Intel stock is up 1% to trade at $40.83 -- earlier hitting a nearly 17-year high of $41.01 -- after Citi Research posited that the company's new chips will be vastly superior to competitor Advanced Micro Devices (AMD). Additionally, Bank of America said it will begin using Intel's Online Connect technology next year. Intel shares have now tacked on 12.6% year-to-date. 

In the options pits, call buying has been vastly more popular than put buying during the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This is according to the equity's 10-day call/put volume ratio of 3.88, which ranks in the 86th percentile of its annual range. Looking ahead, Intel will report third-quarter earnings after the market closes on Thursday, Oct. 26.

Earnings Miss Weighs On Arconic Stock

Arconic stock is down 7.6% to trade at $25.60, after the company reported adjusted third-quarter earnings of 25 cents per share -- below Wall Street estimates. In addition, the aluminum firm named former General Electric executive Chip Blankenship as its new CEO. Today's drop has the shares on track to close below their 80-day moving average for the first time this month -- a trendline that served as a ceiling during an August rally attempt.

Nevertheless, ARNC stock is still boasting a 36% year-to-date lead, and most analysts are optimistic. Of the eight brokerages covering ARNC, five rate the shares a "strong buy," while the other three rate it a tepid "hold."

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