Lawsuit fears are sinking FCAU stock, while BABA and CSCO succumb to earnings woes
U.S. stocks are sliding for a second straight day, as political concerns weigh on sentiment. Among specific stocks on the move are Chinese internet issue Alibaba Group Holding Ltd (NYSE:BABA), Dow stock Cisco Systems, Inc. (NASDAQ:CSCO), and automaker Fiat Chrysler Automobiles NV (NYSE:FCAU). Here's a quick look at what's moving shares of BABA, CSCO, and FCAU.
BABA Stock Drops After Bottom-Line Miss
Alibaba stock is down 4.8% at $114.90, with an earnings miss overshadowing a dramatic increase in revenue. Alibaba Group Holding Ltd also announced a $6 billion stock buyback. BABA shares have still had a strong year, touching a record high of $124.34 on May 16, but the stock remains heavily shorted. After edging higher in the most recent reporting periods, short interest on Alibaba stock represents 14% of the available float, which equates to 12 days' worth of buying power, going by average daily volumes.
Weak Guidance Sinks CSCO Stock
Cisco Systems stock is bombing today, last seen 8% lower at $31.10, following the company's disappointing
current-quarter forecast. The blue chip also said it'd be cutting 1,100 more jobs. This puts CSCO shares below their 200-day for the first time since early December, but they're so far holding familiar support in the $30 region. However,
CSCO stock is now vulnerable to bearish analyst attention, if it can't turn things around on the charts. Sixteen of 22 analysts recommend buying Cisco stock, versus six "hold" ratings and zero "sells."
FCAU Stock Falls Amid Lawsuit Fears
Fiat Chrysler stock is down 4% at $10.16, due to reports the U.S. government is going to sue the company for excessive
diesel emissions. The European Commission earlier took legal aim against Italy for not responding to allegations of Fiat Chrysler cheating on emissions tests. Today's drop puts the shares below their 120-day moving average for the first time since October, though they're still up 45% year-over-year. Options traders have remained committed to calls, too, with FCAU stock boasting a 10-day call/put volume ratio of 2.37 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).