Top Stocks to Watch for Feb. 9: Tesaro, Intel

February 9, 2017

Nordstrom steals the limelight after the clothing retailer appeared to have won the battle against U.S. President Donald Trump. The company’s stock surged by almost 5 percent after Trump tweeted negatively about the company’s decision to drop his daughter Ivanka’s line of branded apparel. But, it’s not all good news for the company. Find out what Sentifi financial crowd is saying about the company and whether you should buy the stock by staying right here on Sentifi.

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Nordstrom Inc.: Won in the clash with Trump

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So, here’s the tweet from Trump himself.

Shortly thereafter, White House press secretary Sean Spicer said the company’s decision was a “direct attack” on Trump administration policy and on Ivanka. Just like every other company that Trump has attacked previously, Nordstrom shares dipped, but not for long. They bounced back up almost 5 percent in less than an hour. There were a few possible reasons for the surge. The obvious one is that it could just be a coincidence. It could also be that investors and traders expected a surge in sales thanks to the free publicity Trump gave the store. Another reason is that battling with Trump could potentially boost the company’s profile in the large metropolitan areas where most of its stores are located.

With that all said, the current sentiment among Sentifi crowd members is bearish, as our traders predict a dip may happen very soon due to short selling. And soon, the store may see a nationwide boycott from Trump supporters. So short selling is advised if you want some quick cash, but generally staying away from the stock is the safe bet.

Bombardier: Stock rises despite concern

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The Canadian aerospace company is not doing well in terms of publicity, but it’s doing very well when it comes to stocks. Recently, Brazil has taken issue with the interest-free loans of $372.5 million the company received from the Canadian government and filed a complaint to WTO on the basic of unfair competition. Sentifi traders, in the other hand, see no issue in their company getting more funding as they continue to invest with a strong belief that the company will bring profit thanks to its ability to secure contract wins with U.S. airlines by selling planes at artificially low prices thanks to the funding.

Under Armour: Receives bullish sentiment from traders

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CEO Kevin Plank has been under a mountain of criticism from social media after praising U.S. President Donald Trump’s pro-business policy. Many loyal customers have vowed to never buy its products again. On the other hand, he’s also received lots of support from small business owners as well. Traders are more practical as they see the stock has very little downside risk with excellent upside potential. Moreover, getting on Trump’s good side also helps the company’s stock avoid a social media clash with the president.

Cigna Corp.: Judge blocks Anthem-Cigna deal, may kill it

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The future of the merger between Anthem and Cigna is doom and gloom after a federal judge blocked the merger and flagged it as anticompetitive. The judge ruled that “the merger would create an unacceptable reduction in companies that can serve large national employees in insuring workers.” The opposition against the merger has grown in the past year and a half, which proves difficult for the merger to move forward. Traders are not very hopeful either, and they’ve already planned to sell the shares to scavenge any profit left.

Whole Foods Market Inc.: Is in a bad situation

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Whole Foods Market continues to see a decline in sales as its fiscal Q1 same-store sales declined 2.4 percent. Traders’ sentiment about the company is even worse. A lot of them are expressing a loss of faith in the company, and demanding a change in its management before they invest in the company. Some even cited their own experience with the stock, saying they sold an entire position last year and waited for signs of a turnaround to get back in, only to be greeted with disappointment. Others have also pointed out that Costco is a better stock to invest in.

Moelis & Co.: Shares trade up on a Saudi Arabian IPO

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Saudi Arabian Oil Co. has picked the U.S.-based boutique investment bank to advise on its initial public offering which will be the world’s biggest share sale. The bank’s shares have been traded up by 5.43 percent, also thanks to its strong Q4 earnings. Sentifi financial crowd’s sentiment on the stock is quite neutral, so expect the bank’s shares to go down in price slightly as it always happens to a company’s shares after it releases an earnings report.

Rio Tinto Ltd.: The bears are dominant

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After a strong earnings report, Rio Tinto shares are on the way down, as expected. But, Sentifi traders have caught the glimpse of its forecast EPS. The company has lowered its forecast EPS from $2.9 to $2.63, which is not good for its prospect. Thus, lot of traders are selling the stock on the prediction that it will go much lower very soon.

Tesaro Inc.: Stock rallies on buyout rumor

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The U.S. biopharmaceutical is in discussion with investment banks about acquisition interest it’s received from several drugmakers. The news propelled the company’s stock up 12.28 percent. Traders are cashing in the stock, hoping the buyout rumor to be true to cash in. A few of them are exercising caution, warning others not to believe in buyout rumors, but that doesn’t stop many other traders from buying the stock.

Intel: Invests more in the U.S.

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The computer chip manufacturer has announced an investment of $7 billion to finish a factory in Arizona that will create 3,000 jobs. The news further cemented Intel’s position as one of the best low risk option trading vehicles in the market. Many traders have already planned a short trading strategy around Intel shares, so you should do the same as well.

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