Stocks are higher this afternoon, with all three major U.S. benchmarks boosted by an array of upbeat earnings reports. However, not all of the day's action is to the upside, with biotech Celgene Corporation (NASDAQ:CELG), tech stock Nokia Oyj (NYSE:NOK), and wellness retailer GNC Holdings Inc (NYSE:GNC) all spiraling. Here's a quick look at what's moving shares of CELG, NOK, and GNC.
Celgene stock is down 18% to trade at $97.94 -- earlier hitting a new annual low of $95.50, and pacing toward its worst single-day drop in 17 years -- after the biotech cut its profit and sales guidance for 2020, while also reporting weak sales of its flagship drugs Revlimid and Otezla. Plus, Raymond James downgraded the CELG to "market perform" from "strong buy" and Baird slashed its price target to $103 from $136, just days after Guggenheim said to buy the stock.
Options traders have been quick to respond to CELG stock, with 205,346 contracts exchanged -- nine times the average intraday rate, and a new 12-month high. The weekly 10/27 95-strike put is most active, and it looks like there could be a mix of buy- and sell-to-open activity here. Those buying the puts expect Celgene shares to plummet below $95 by expiration at this Friday's close, while those writing the puts expect the strike to hold as a near-term floor.
Nokia is down 19.7% to trade at $4.86, among the worst stocks on the New York Stock Exchange (NYSE) today. This comes after the telecom company reported earnings well below Wall Street estimates and lowered its guidance for 2018, citing increased competition in China. NOK stock is on track for its worst day in five years, and is currently trading at its lowest point since February.
While the stock is short-sale restricted (SSR) today, short sellers have been ramping up their bearish exposure in recent weeks. Short interest surged 24.9% in the two most recent reporting periods to 29.24 million shares -- the most since mid-April.
GNC stock is down 12.4% to trade at $7.12 -- also among the worst on the NYSE -- after the nutrition company reported earnings that fell just short of analyst expectations, citing a negative impact from Hurricanes Harvey, Irma, and Maria. GNC stock has now shed 31% year-to-date, amid increasing pressure from short sellers. Although GNC is currently SSR, short interest increased by 6.4% during the last reporting period to 23.65 million shares, which represents a whopping 35% of the stock's total available float.