Buzz Stocks: Kate Spade & Co, Time Warner Inc, and Fiat Chrysler Automobiles NV

Today's stocks to watch in the news include Kate Spade & Co (NYSE:KATE), Time Warner Inc (NYSE:TWX), and Fiat Chrysler Automobiles NV (NYSE:FCAU)

Aug 3, 2016 at 10:14 AM

U.S. stocks are down, despite promising private-sector jobs data, with the Dow staring at its longest losing streak in five years. Among equities in focus are luxury apparel stock Kate Spade & Co (NYSE:KATE), media company Time Warner Inc (NYSE:TWX), and automaker Fiat Chrysler Automobiles NV (NYSE:FCAU).

KATE is down 19.7% at $16.17, after reporting disappointing quarterly earnings and downwardly revising its full-year sales forecast, citing continued headwinds in the retail environment and tourists discouraged by the stronger dollar. Prior to today, KATE was up 13.3% since the beginning of 2016, but today's drop puts the luxury goods retailer down 9.1% year-to-date, and within a chip-shot of annual-low territory. There's likely some cheering in the option pits after this latest move, given KATE's Schaeffer's put/call open interest ratio (SOIR) of 1.06 sits higher than 92% of all other readings from the past year, suggesting near-term option players have rarely been more put-skewed over the last 12 months.

TWX is up 2.6% at $77.73, after upwardly revising its full-year profit forecast and announcing a 10% stake in online streaming service Hulu. TWX is now up 20.3% year-to-date, and has rallied 40% since its February low of $55.53. Option bulls have been keen on TWX as of late, with Time Warner Inc's 50-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 7.54 sits higher than 84% of all other readings from the past 12 months.

FCAU is up 6.4% at $6.47, amid reports that Samsung Electronics Co Ltd is in talks to purchase some or all of its Magneti Marelli unit. This is welcome news for FCAU, which is down over 28% year-to-date, and has struggled with resistance from its 32-week moving average since October. Furthermore, FCAU just hit a record low of $5.45 not even a month ago. There are plenty of skeptics hoping for more downside, though. While short interest fell 16.3% over the previous two reporting periods, shorted shares still represent over two weeks' of pent-up buying demand, at FCAU's average daily volume.

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