There's no shortage of news hitting the Street today, including the latest GDP figures and a fresh round of corporate earnings. Among today's newsmakers are Apple Inc. (AAPL), which is facing its latest iPhone 4 migraine, and QUALCOMM, Inc. (QCOM) and Whole Foods Market, Inc. (WFMI), which have both formed new strategic partnerships.
The good news for Apple Inc. (AAPL)? Its iPhone 4 is wildly popular in New Zealand. The bad news? The gadget's New Zealand launch is being described as a "nightmare," according to AFP reports. Early arrivers were disappointed to learn the phone's debut was being inexplicably pushed back to the afternoon hours -- and then, the news broke that only Vodafone account holders would be able to purchase the iPhone 4, due to scant availability.
AAPL is hovering near breakeven at last check, with the stock continuing its recent consolidation around the $260 region. The shares have been bouncing between $255 and $265 since July 21, as support from their 10-week and 20-week moving averages rises into the neighborhood.
Amid the equity's recent stagnation, options players have started gravitating toward puts on the gadget guru. During the past 10 days, AAPL has racked up an International Securities Exchange (ISE) buy-to-open put/call volume ratio of 0.77. This ratio resides in the 92nd annual percentile, indicating that traders have purchased puts over calls at a faster clip just 8% of the time during the past year.
Meanwhile, QUALCOMM, Inc. (QCOM) announced a new joint venture with Global Holding Corp. and Tulip Telecom Ltd. of India. The companies are teaming up to create a network for wireless broadband services in the emerging country. QCOM will hold 74% of the new venture, thanks to its investment of $164.3 million, with the other two firms each maintaining a 13% stake worth $28.86 million.
On the charts, QCOM is down about 2.3% amid a mixed session for U.S. equities. The stock recently gapped above its 100-day moving average, and is now pulling back to potential support from this trendline.
Checking out the stock's option activity today, it looks as though one speculator is betting on intermediate-term losses for QCOM. Judging by several major trades that crossed the tape earlier, the equity was the target of a synthetic short options spread, with the trader selling the equity's January 2011 39-strike call, and simultaneously buying QCOM's January 2011 39-strike put.
Speaking of new corporate partnerships, Whole Foods Market, Inc. (WFMI) said late Thursday that it inked a deal with United Natural Foods (UNFI). Under the terms of the agreement, UNFI will become the primary nonperishable distributor for WFMI's Rocky Mountain region. The deal calls for UNFI to acquire certain inventory from the grocer's Aurora, Colo., and Austin, Texas, distribution facilities, as well as the lease agreement and all employees at the Colorado facility.
WFMI is roughly 2% lower as we head into the second half of the session, with the stock giving away part of its year-to-date gain of 41%. The stock is at a critical juncture on the charts -- currently, WFMI is pinned between long-term support from its rising 10-month moving average, and resistance from its 80-month moving average, which is docked near the round-number $40 region.
Despite WFMI's respectable technical performance in 2010, traders are growing skeptical of the equity's inability to conquer the $40 level. The equity's Schaeffer's put/call open interest ratio (SOIR) weighs in at 1.48, with puts easily outnumbering calls among near-term options. This ratio rests in the 82nd annual percentile, indicating that traders have been more bearishly aligned just 18% of the time during the past year.
Elsewhere, short sellers have also ramped up their bearish bets. Short interest on WFMI swelled by 13.7% during the past month, and now accounts for a healthy 11.7% of the equity's float -- or nearly seven times WFMI's average daily trading volume.
If the stock can continue its long-term uptrend, an unwinding of pessimism could provide a steady source of buying pressure. However, WFMI may need to tackle the looming $40 level before the bears start feeling the heat.
Discuss this article:
Post your own comment
More articles:
TiVo Inc. (TIVO) stepped into the earnings spotlight after the close on Wednesday to report a narrower-than-expected loss, thanks to a pick-up in sales for its new Premiere recorder. However, the company forecast a wider-than-expected net loss in the fiscal third quarter. read more...
American Eagle Outfitters (AEO) announced before the open this morning that its fiscal second-quarter earnings tumbled 66% on wider losses related to its failed Martin + Osa chain. read more...
Pacific Sunwear of California Inc. (PSUN) announced after the close on Tuesday that its fiscal second-quarter loss widened. Quarterly results rolled in at a loss of $23.5 million, or 36 cents a share, compared with a year-earlier loss of $14.2 million, or 22 cents a share. Excluding a charge for tax assets, the loss was 22 cents in the latest quarter. Net sales declined 10% to $218.3 million, while analysts expected $213 million. Same-store sales fell 10%. The company in May projected a loss of 22 cents to 28 cents a share, worse than analysts' estimates at the time, on a same-store sales decline of 9% to 14%. Gross margin narrowed to 23.2% from 23.8%. read more...
Earnings rolled in last night from retailing giant Limited Brands Inc. (LTD), and it appears that the company is in better shape than many of its peers. The firm surpassed the consensus estimate, helped by stronger sales at its Victoria's Secret and Bath & Body Works chains. read more...
Stocks grabbing headlines today include Trina Solar Limited (TSL), which inked a new supply deal with SunEdison; Jazz Pharmaceuticals, Inc. (JAZZ), which is attracting attention ahead of an FDA review later this week; and Biogen Idec Inc. (BIIB), which is partnering with Knopp Neurosciences on a treatment for Lou Gehrig's disease. read more...
Stocks grabbing headlines today include Cumberland Pharmaceuticals, Inc. (CPIX), which is wallowing in the red after a second-quarter earnings miss; GT Solar International, Inc. (SOLR), which retreated from a new annual high in the wake of an analyst downgrade; and M&T Bank Corporation (MTB), which is the center of renewed merger speculation with a Spanish peer. read more...
Deutsche Bank kicked off the week by weighing in on the biotech sector. The brokerage firm is generally pretty downbeat on the group, as evidenced by its lukewarm rating on Amgen, Inc. (AMGN) -- but Dendreon Corporation (DNDN) and Gilead Sciences, Inc. (GILD) each managed to score bullish notes from the analysts. However, only DNDN has been able to capitalize on its brokerage boost, with the shares shrugging off sector weakness to trek higher at midday. read more...
Taking a look at today's noteworthy analyst actions, MF Global Holdings Ltd. (MF) garnered a bullish note in the wake of last week's well-received earnings report. Meanwhile, Las Vegas Sands Corp. (LVS) woke up to a healthy price-target boost, while Hartford Financial Services (HIG) is slumping dramatically after a downgrade to "hold." read more...
Among today's notable analyst notes are a new bullish rating for ZymoGenetics, Inc. (ZGEN), a post-earnings upgrade for Whole Foods Market, Inc. (WFMI), and a mixed bag of new brokerage initiations for new kid on the Street Tesla Motors Inc. (TSLA). Read on for a quick-and-dirty review of how each stock is faring in the wake of this fresh analyst attention. read more...
Wall Street was holding its breath all week for today's marquee nonfarm payrolls report from the Labor Department -- and that whooshing sound you heard this morning was the wind coming out of the bulls' sails. The Bureau of Labor Statistics (BLS) confessed that nonfarm payrolls fell by 131,000 in July, thanks to a mass exodus of census employees. Private sector payrolls climbed by a weaker-than-expected 71,000 for the month, while unemployment held steady at a 9.5% rate. read more...
working... 
