China's retail sales and industrial production data missed expectations
U.S.-listed Chinese stocks are slipping this morning, after China's National Bureau of Statistics on Monday released data showing July retail sales grew just 2.7% year-over-year, compared to the expected 5% growth, marking a drop from the 3.1% growth seen in June. Industrial production data in the country also missed growth estimates, rising just 3.8%, as opposed to the previous month's 3.9% jump.
Two stocks feeling the weight of this disappointing economic data are JD.Com Inc (NASDAQ:JD) and Pinduoduo Inc (NASDAQ:PDD). JD was last seen down 1.5% at $56.19, while PDD was down 1.6% at $48.01at last check. Below, we will take a look at how both equities are performing on the charts, and dive into the sentiment surrounding them.
Starting with JD, the stock had a hard time capitalizing on a rally earlier this month, though shares found a floor at the $54 mark. The 180-day moving average has kept a tight lid on the equity, however, keeping the tech name at a 16.5% year-to-date deficit.
Despite this, short-term options traders have been incredibly call-biased of late, per JD's Schaeffer's put/call open interest ratio (SOIR) of 0.60, which stands in the 3rd percentile of its annual range. Plus, of the 10 analysts in coverage, all but one call the security a "buy" or better.
PDD also ran into trouble at its 180-day moving average last week, after spending most of June and early July above the trendline. And while the $44 level moved in as a floor in recent weeks, PDD remains down 16.3% year-to-date.
Options traders have taken a bullish stance on PDD as well. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock boasts a 10-day call/put volume ratio of 3.46, which ranks higher than 88% of readings from the past year. This means calls are getting picked up at a quicker-than-usual clip.