Whole Foods is near the bottom of the SPX on a negative earnings reaction for KR stock
Though the major market indexes are off their session lows, they remain under pressure from a steeper decline in FAANG stocks. Among other names making volatile moves are media stock Tribune Media Co (NYSE:TRCO), steel manufacturer Nucor Corporation (NYSE:NUE), and organic grocer Whole Foods Market, Inc. (NASDAQ:WFM). Here's a quick look at what's moving shares of TRCO, NUE, and WFM.
TRCO Stock Jumps as Sinclair Buyout Seems More Likely
Tribune Media shares are trading up 5.6% at $41.21, after a federal appeals court effectively removed a legal hurdle in Sinclair Broadcast's proposed takeover of TRCO. Specifically, the court voted against blocking the Federal Communications Commission's (FCC) reversal of a 2016 order limiting the number of television stations broadcasters can purchase.
Today's positive price action is just more of the same for TRCO shares -- up 40% year-to-date, and fresh off an M&A-induced record high of $43.04 on May 8. This has coincided with a rise in short interest, which could be a result of arbitrage. Regardless, short interest surged 19% in the two most recent reporting periods to 3.1 million shares, the most since mid-February.
NUE Stock Lowers Profit Forecast on "Challenging" Market Conditions
Nucor stock has plunged 6.4% to trade at $55.34, after the company said it expects second-quarter per-share profit to land between $1.00 and $1.05, below the consensus estimate of $1.22, citing "more challenging" market conditions. While the shares are maintaining a roughly 10% year-over-year lead, they are now at risk of closing south of their 50-week moving average for the first time since early March 2016.
Should Nucor shares continue to tumble, there's ample room for analysts to downwardly revise their ratings. Ten of the 13 brokerages covering NUE maintain a "strong buy" rating, with not a single "sell" on the books, while the average 12-month price target of $69.83 stands at a 26.4% premium to the stock's current perch.
WFM Stock Slumps After Kroger Earnings
Kroger stock's negative earnings reaction is dragging Whole Foods shares into the red, with the stock last seen down 6.2% at $33.26 -- near the bottom of the S&P 500 Index (SPX). Nevertheless, WFM is still sporting an 7.4% year-to-date lead.
Short-term WFM options traders have rarely been as put-skewed as they are now, per the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.92 -- in the 94th annual percentile. Peak open interest in the front-month series is found at the June 35 put, and data indicates most of the positions were sold to open, meaning some speculators are hoping today's retreat is short-lived.