2 Stocks Sinking After Earnings

Infinera stock just crossed a key technical level

Managing Editor
Feb 8, 2018 at 3:24 PM
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Volatility continues to run rampant on Wall Street today, with the Dow last seen down over 600 points. Among individual stocks moving lower today are automaker Tesla Inc (NASDAQ:TSLA) and high-end retailer Canada Goose Holdings (NYSE:GOOS), though tech concern Infinera Corp. (NASDAQ:INFN) is soaring. Here's a closer look at what's moving shares of TSLA, GOOS, and INFN today.

Tesla Stock Stalls After Spending Warning

Tesla stock is down 6.6% at $322.22 at last check -- on track for its session since Nov. 2 -- after the company said its fiscal first-quarter loss was its steepest ever, and warned of a spending increase in 2018 to meet lofty Model 3 production goals. Despite today's drop, TSLA stock has still managed to add 23% year-over-year. 

Options traders have been quite bullish on TSLA in the past two weeks. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows the stock's 10-day call/put volume ratio of 1.26 ranks in the 70th percentile of its annual range. This suggests that calls have been bought to open relative to puts at a faster-than-usual clip.

CFO Shake-Up Shoots Down Canada Goose Stock

Canada Goose stock is down 15.5% at $32.19, among the worst stocks on the New York Stock Exchange (NYSE) today. While the retailer posted fiscal third-quarter earnings that topped estimates, the company also announced Jimmy Choo exec Jonathan Sinclair will replace retiring John Black as chief financial officer.

After notching a record high of $38.25 yesterday, U.S.-listed GOOS shares are on track for their worst day since they first began trading last March. However, the equity's 14-day Relative Strength Index (RSI) closed last night at 80, deep in overbought territory, indicating today's breather may have been in the cards. Even with today's drop, though, GOOS stock is still up almost 87% in the past nine months.

Infinera Stock Pacing For Best Day In Three Years

Shares of INFN are up 26.52% at $8.73 -- on track for its best day since October 2014 -- after the tech company reported a smaller-than-expected fourth-quarter earnings loss and revenue that beat estimates. As a result, Northland Capital upgraded INFN to "outperform," and Deutsche Bank chimed in with a price-target hike to $11 from $10.

Today's surge has INFN shares filling an early November bear gap. However, they seem to be running out of steam near their 200-day moving average, a trendline not conquered on a closing basis since early August.

A number of short sellers got out just in the nick of time, too. Short interest plunged 13.1% in the two most recent reporting periods to 15.57 million shares. This still represents a healthy 10.8% of the stock's available float.

 

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