Investors are cheering GE's newly anointed CEO
U.S. stocks are down, as many tech stocks opened the week in the red. Among specific names on the move today are Dow stock General Electric Company (NYSE:GE), bioscience stock Coherus Biosciences Inc (NASDAQ:CHRS), and social media concern Facebook Inc (NASDAQ:FB). Here's a quick look at what's moving shares of GE, CHRS, and FB.
CEO Departure Shakes Up GE Stock
GE stock is up 4% today at $29.14, after news broke that Chairman and CEO Jeff Immelt will be stepping down, with CEO of GE Healthcare John Flannery taking over the top executive role this August, and assuming chairman responsibilities in 2018. Today's pop is a rare bullish move for the stock, which has shed nearly nearly 8% year-to-date, and hit a 15-month low of $27.10 on May 18.
Despite GE's lackluster price action this year, options traders have been favoring calls over puts. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GE has a 10-day call/put volume ratio of 4.24, which ranks in the 90th percentile of its annual range -- indicating a stronger-than-usual appetite for bullish bets as of late.
FDA Rejection Sends CHRS Stock Spiraling
Bioscience stock CHRS is reeling, down 30% to trade at $14.14 -- just north of annual-low territory -- after the FDA rejected its biosimilar for Amgen's blockbuster Neulasta drug, which fights infections in cancer patients. Coherus expects to take about six months to respond to the regulatory agency's concerns.
Today's big drop exacerbates what has been a rough year for the stock, with CHRS now down 49% year-to-date. Unfortunately, analyst downgrades could also spark fresh selling in the wake of today's news; all six brokerage firms tracking the shares maintain a "strong buy" rating on CHRS.
FB Stock Falls Victim to Tech Drop
FB stock is down 2% to trade at $146.49, succumbing to the broader tech sell-off that's plaguing markets around the globe. Facebook shares started to tail off last Friday, ending sharply lower despite hitting a record high of $155.99 earlier in the session. FB stock has posted solid returns for the year, up 21% year-to-date -- but is currently at risk of closing the session below its 50-day moving average, at $147.58, for the first time since early January.
Amid the stock's impressive rise to new highs in 2017, options traders have taken a strong interest in FB call options. FB boasts a 10-day ISE/CBOE/PHLX call/put volume ratio of 2.35, which ranks in the 97th percentile of its annual range. Analysts echo this bullish sentiment, with 92% of brokerages rating the stock a "buy" or better.