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The Latest Retailer Casualty, NVIDIA Earnings, and Netflix Fights for 'Star Wars'

NVDA stock is lower after earnings, but analysts remain optimistic

Aug 11, 2017 at 10:11 AM
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U.S. stocks are attempting to snap their recent losing streak, despite increased tensions between the U.S and North Korea tension. Retailer J C Penney Company Inc (NYSE:JCP), chip concern NVIDIA Corporation (NASDAQ:NVDA), and streaming entertainment service Netflix, Inc. (NASDAQ:NFLX) are three stocks in the news this morning. Here's a quick look at what's moving shares of JCP, NVDA, and NFLX.

JCP Stock Hits Record Low After Earnings

J C Penney shares hit a record low of $3.87 out of the gate, after the company reported a steeper-than-expected second-quarter loss. At last glance, JCP stock was down more 17.2% to trade at $3.90,  and gapped below its 40-day moving average for the first time since July 12. At the end of Thursday, JCP stock sported a Schaeffer's Volatility Index (SVI) of 1.33%, ranking in the 100th percentile of all other ratios in its annual range, due to increased volatility expectations before J C Penny's earnings release. Those expectations were likely heightened yesterday, too, after a handful of fellow retailers reported dismal earnings.

Nvidia Earnings Bring Price-Target Hikes from Analysts 

Chipmaker Nvidia reported stronger-than-expected quarterly earnings, but unimpressive sales at the company's data center and autonomous driving units have NVDA stock down 5.6% at $155.48. The shares are now poised to snap their streak of positive earnings reactions, yet analysts are waxing optimistic. Nvidia stock received no fewer than nine price-target raises this morning, with SunTrust Robinson Humphrey upping its price target to $181 from $177 -- in uncharted territory.

Considering NVDA just touched a record high of $174.56 earlier this week, it's no surprise to find most analysts are already bullish. Of the 27 following the stock, 16 carry a "buy" or "strong buy" recommendation. 

Netflix Reaches for Marvel and 'Star Wars'

Just a day after Walt Disney announced plans to pull its content from Netflix, the duo is once again making headlines this morning. Specifically, Netflix is reportedly talking with Disney about keeping Marvel and "Star Wars" movies beyond 2019. The FAANG stock is up 0.8% to trade at $170.45, after yesterday marking its lowest close since its July bull gap, and carries an impressive year-over-year gain of 80%.

On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NFLX stock sports a 10-day put/call volume ratio of 1.00, which sits in the 90th percentile of all other ratios in the past 12 months. This suggests that while puts and calls were bought to open at roughly the same pace,  options buyers have shown a healthier-than-usual appetite for bearish bets over bullish during the past two weeks.
 
 

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