Stocks making the biggest moves premarket: Bank of America, UnitedHealth, P&G and more

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Check out the companies making headlines before the bell:

Bank of America (BAC) – Bank of America shares rallied 3.2% in the premarket after it beat estimates by 6 cents with a quarterly profit of 82 cents per share. Revenue was slightly below forecasts, but the bank’s overall performance was helped by strength in investment banking.

UnitedHealth Group (UNH) – UnitedHealth earned an adjusted $4.48 per share for the fourth quarter, 17 cents above estimates, and the health insurer’s revenue also topped forecasts. UnitedHealth saw particular strength from its Optum unit’s drug benefits management business.

Morgan Stanley (MS) – Morgan Stanley jumped 3.5% in the premarket after beating estimates by 10 cents with a quarterly profit of $2.01 per share, and revenue essentially in line with forecasts. Results got a boost from robust deal advisory fees on a very active quarter for merger and acquisition deals.

Procter & Gamble (PG) – P&G added 1% in the premarket after beating estimates on the top and bottom lines for its fiscal second quarter and raising its organic growth outlook. P&G beat estimates by a penny with a profit of $1.66 per share, as consumers shrugged off price hikes for the company’s household staples.

Sony (SONY) – Sony fell 3.9% in premarket trading on top of a 7.2% skid Tuesday. The drop followed news of Microsoft’s (MSFT) deal to buy video game maker Activision Blizzard (ATVI) for $68.7 billion, a transaction that would increase competitive pressure on Sony’s PlayStation operation.

Alliance Data Systems (ADS) – Alliance Data lost 1.7% in premarket action, following news that warehouse retailer BJ’s Wholesale (BJ) is moving its co-branded credit card account to Capital One (COF). Alliance is also being sued by BJ’s, which claims the store credit card specialist is slowing down the transfer process. Alliance said it believes it is in full compliance with its contract.

SoFi Technologies (SOFI) – SoFi surged 18% in premarket action after the financial technology company won regulatory approval to become a bank holding company.

Zogenix (ZGNX) – Zogenix soared 65.9% in the premarket after agreeing to be acquired by Brussels-based biopharmaceutical company UCB for $26 dollars per share, compared with the $15.64 Tuesday closing price for Zogenix. UCB would also pay an extra $2 per share if the Zogenix drug fintepla – a treatment for a rare type of epilepsy – wins EU approval by the end of 2023.

Tegna (TGNA) – Tegna is close to finalizing a $9 billion deal to be bought out by private equity firms Apollo Global Management and Standard General, according to sources familiar with the situation who spoke to the New York Post. The paper said the TV station operator was initially holding out for a roughly $500 million breakup fee if the deal did not receive FCC approval in a timely manner, but has now backed off that demand. Tegna rallied 4.9% in the premarket.

ASML (ASML) – ASML shares rose after reporting a better-than-expected fourth-quarter profit. The Dutch chipmaker also issued an upbeat 2022 sales growth forecast, with shares adding 2.2% in premarket trading.

Pearson (PSON) – Pearson raised its full-year forecast amid strength across its education publishing portfolio and better-than-expected prospects for U.S. higher education courseware. Pearson shares jumped 7.2% in the premarket.

Correction: Tegna was seeking a breakup fee of roughly $500 million as part of a deal to be bought out by private equity firms, according to the New York Post. An earlier version of this story misstated the figure.

Nasdaq ends in correction territory for first time in 10 months, stocks tumble as Wall Street girds for inflation battle

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U.S. stock benchmarks finished lower Wednesday, with the Nasdaq Composite booking its first close in correction territory since March, as sharply higher bond yields and elevated inflation rattle investors.

Banks stocks were again in the spotlight, with Morgan Stanley and Bank of America reporting quarterly results.

How did stock indexes fare?

On Tuesday, stocks fell sharply, with the Nasdaq Composite tumbling 2.6% to finish below its 200-day moving average.

What drove markets?

Markets tumbled into the closing bell Wednesday in another session of volatile trade, a potential sign of the “new normal” for equities, as the Federal Reserve looks to tighten financial conditions and tamp down inflation.

“I don’t think it’s going to be a short-lived bout of volatility,” said Matt Peron, Janus Henderson’s director of research, in a phone interview. “There’s a lot policy normalization that has to happen. There are a lot of changes in investors’ thinking that needs to happen, and those typically take time.”

While Peron said he’s “constructive on the long term” for stocks, he also expects the next three to six months to be choppy as the Fed looks to rein in easy monetary conditions unleashed during the pandemic.

Surging Treasury yields have weighed on the market’s bullishness, particularly hitting yield-sensitive technology and other growth equities hard. The yield on the 10-year Treasury note TMUBMUSD10Y, 1.869% on Wednesday was at around 1.826%, pulling back somewhat, after reaching highs not seen since early 2020.

Read: Stock-market warning signal: Here’s what surging bond yields say about S&P 500 returns

The yield on the 2-year Treasury note TMUBMUSD02Y, 1.055% , more sensitive to Federal Reserve policy expectations, fell 1.6 basis points to 1.022%, after hitting its highest level since February 2020.

“There is concern that…the Fed is not easing into monetary policy normalization because it is so far behind the curve,” Invesco’s chief global market strategist, Kristina Hooper, told MarketWatch.

She also sees inflation, which the Fed now plans to fight, as weighing on the stock market. “In a number of the earnings calls, we are hearing about expenses going up…we’re hearing about compensation going up,” Hooper said, noting that wage inflation tends to be longer-lived.

The Fed is scheduled to meet next Tuesday and Wednesday, though many think January will be too soon to pencil in the first interest-rate hike of the year. Federated Hermes’ Philip Orlando expects four rate hikes this year, starting in March, each in 25-basis-point increases, even through others have begun calling for a series of 50-basis-point hikes to help “get the inflation genie back in the bottle.”

“I don’t think they will be that aggressive,” the chief equity-market strategist told MarketWatch. “But the reality is we just don’t know. I think that’s going to create a lot of volatility and uncertainty in the markets right now.”

In U.S. economic reports, home builders started construction on homes at a seasonally adjusted annual rate of roughly 1.7 million in December, representing a 1% increase from the previous month, the U.S. Census Bureau reported Wednesday. Compared with December 2020, housing starts were up 2.5%.

Permitting for new homes also occurred at a seasonally adjusted annual rate of 1.87 million, up 9% from November and 6.5% from a year ago.

Separately, crude oil prices CL00, +0.24% BRN00, -0.81% on Wednesday closed at their highest levels in more than seven years, following reports that an explosion disrupted flow through the Kirkuk-Ceyhan pipeline between Iraq and Turkey.

The International Energy Agency also predicted global oil demand will exceed pre-pandemic levels this year due to increased vaccination against COVID-19 and milder recent waves of the virus. West Texas Intermediate crude for February delivery CLG22, +0.87% closed up 1.8% to around $86.96 a barrel.

Read: Oil could break the stock market’s back if crude ‘goes parabolic’ — How to prepare

Which companies were in focus?

Investors poured over a report from Bank of America BAC, +0.39% after the bank reported fourth-quarter profit that rose above expectations. Shares rose 0.4%.

BAC, after the bank reported fourth-quarter profit that rose above expectations. Shares rose 0.4%. Morgan Stanley MS shares were in focus after the bank beat profit estimates for the fourth quarter amid strong performances at its investment banking and wealth management divisions. Its stock rose 1.8%.

MS shares were in focus after the bank beat profit estimates for the fourth quarter amid strong performances at its investment banking and wealth management divisions. Its stock rose 1.8%. Procter & Gamble Co. PG shares added 3.4% Wednesday after the consumer products company reported fiscal second-quarter results that beat expectations and narrowed its full-year sales guidance.

PG shares added 3.4% Wednesday after the consumer products company reported fiscal second-quarter results that beat expectations and narrowed its full-year sales guidance. UnitedHealth Group Inc . UNH reported fourth-quarter profit and revenue that rose above expectations and affirmed its full-year outlook. Its stock added 0.3%.

. UNH reported fourth-quarter profit and revenue that rose above expectations and affirmed its full-year outlook. Its stock added 0.3%. U.S. listed shares of ASML Holding ASML, -2.29% fell 2.3% after the Dutch semiconductor-equipment maker reported better-than-forecast fourth-quarter earnings, predicted a 20% rise in sales this year and doubled its dividend to €5.50.

ASML, fell 2.3% after the Dutch semiconductor-equipment maker reported better-than-forecast fourth-quarter earnings, predicted a 20% rise in sales this year and doubled its dividend to €5.50. SoFi Technologies Inc. shares SOFI, +13.68% climbed 13.7% after the financial-technology group said that it won regulatory approval to become a bank holding company.

shares SOFI, climbed 13.7% after the financial-technology group said that it won regulatory approval to become a bank holding company. Shares of Zogenix Inc. ZGNX, +65.73% surged 65.7% after the biopharmaceutical company agreed to a deal to be acquired by Belgian peer UCB, with an up to $1.9 billion valuation.

How did other assets do?

The ICE U.S. Dollar Index DXY, a measure of the currency against a basket of six rivals, fell 0.2%.

Gold futures GC00 rose 1.67%, settling at a two-month high at $1,843.20 an ounce.

The Stoxx Europe 600 SXXP closed 0.2% higher, but well off its high, while London’s FTSE 100 UKX, a commodity-heavy index, advanced 0.4%.

The Shanghai Composite SHCOMP declined 0.3%, while the Hang Seng Index HSI rose less than 0.1% in Hong Kong and the Nikkei 225 NIK declined 2.8%.

—Barbara Kollmeyer contributed reporting

Hoese & Co LLP Buys Ecolab Inc, AerCap Holdings NV, UnitedHealth Group Inc, Sells Manulife …

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Investment company Hoese & Co LLP (Current Portfolio) buys Ecolab Inc, AerCap Holdings NV, UnitedHealth Group Inc, Alphabet Inc, NVIDIA Corp, sells Manulife Financial Corp, Paychex Inc, Diageo PLC, National Grid PLC, Kinder Morgan Inc during the 3-months ended 2021Q4, according to the most recent filings of the investment company, Hoese & Co LLP. As of 2021Q4, Hoese & Co LLP owns 211 stocks with a total value of $101 million. These are the details of the buys and sells.

New Purchases: AER, NVDA, HRL, FUL, WFCPL.PFD, TTC, TNC, SHW, AAL, LFUS, FAST, LLY, DCI, NVT, SCHW, CHRW, PII, ZNGA, ELAN, JAMF, JAMF, ONL, ZBH, QCOM, ATVI, DGII, CTAS, BAX, LNT,

Added Positions: USMV, VIG, VOO, SPHQ, VTI, QUAL, DGRO, ECL, MDT, USB, GOOG, UNH, JNJ, ABT, UPS, DIS, WFC, PFG, MSI, HD, FISV, AXP, SYY, ROK, INTC, CVX,

Reduced Positions: ACN, MMM, SCHG, JPM, MDY, MRK, MSFT, UNP, NKE, BABA,

Sold Out: MFC, PAYX, DEO, NGG, KMI, RACE, CS, ORAN, HAIN, LRCX, VTRS, TEF, CODI, ADT, OGN,

For the details of Hoese & Co LLP’s stock buys and sells,

go to https://www.gurufocus.com/guru/hoese+%26+co+llp/current-portfolio/portfolio

These are the top 5 holdings of Hoese & Co LLP

iShares Core S&P 500 ETF (IVV) - 38,162 shares, 18.09% of the total portfolio. Shares reduced by 0.52% S&P 500 ETF TRUST ETF (SPY) - 23,135 shares, 10.92% of the total portfolio. Shares added by 0.44% Vanguard Short-Term Inflation-Protected Securities (VTIP) - 202,340 shares, 10.34% of the total portfolio. Shares reduced by 0.56% Vanguard S&P 500 ETF (VOO) - 19,263 shares, 8.36% of the total portfolio. Shares added by 1.93% Vanguard Total Stock Market ETF (VTI) - 17,975 shares, 4.31% of the total portfolio. Shares added by 3.39%

New Purchase: AerCap Holdings NV (AER)

Hoese & Co LLP initiated holding in AerCap Holdings NV. The purchase prices were between $54.5 and $69.05, with an estimated average price of $61.95. The stock is now traded at around $67.610000. The impact to a portfolio due to this purchase was 0.02%. The holding were 300 shares as of 2021-12-31.

Story continues

New Purchase: Hormel Foods Corp (HRL)

Hoese & Co LLP initiated holding in Hormel Foods Corp. The purchase prices were between $41.24 and $49.19, with an estimated average price of $43.93. The stock is now traded at around $49.230000. The impact to a portfolio due to this purchase was 0.02%. The holding were 324 shares as of 2021-12-31.

New Purchase: NVIDIA Corp (NVDA)

Hoese & Co LLP initiated holding in NVIDIA Corp. The purchase prices were between $197.32 and $333.76, with an estimated average price of $277.31. The stock is now traded at around $259.030000. The impact to a portfolio due to this purchase was 0.02%. The holding were 72 shares as of 2021-12-31.

New Purchase: Fastenal Co (FAST)

Hoese & Co LLP initiated holding in Fastenal Co. The purchase prices were between $51.3 and $64.42, with an estimated average price of $59.15. The stock is now traded at around $58.390000. The impact to a portfolio due to this purchase was 0.01%. The holding were 216 shares as of 2021-12-31.

New Purchase: Sherwin-Williams Co (SHW)

Hoese & Co LLP initiated holding in Sherwin-Williams Co. The purchase prices were between $285.29 and $352.16, with an estimated average price of $324.02. The stock is now traded at around $306.220000. The impact to a portfolio due to this purchase was 0.01%. The holding were 26 shares as of 2021-12-31.

New Purchase: nVent Electric PLC (NVT)

Hoese & Co LLP initiated holding in nVent Electric PLC. The purchase prices were between $31.3 and $38.31, with an estimated average price of $35.59. The stock is now traded at around $37.090000. The impact to a portfolio due to this purchase was 0.01%. The holding were 224 shares as of 2021-12-31.

Added: Ecolab Inc (ECL)

Hoese & Co LLP added to a holding in Ecolab Inc by 107.14%. The purchase prices were between $212.13 and $235.67, with an estimated average price of $226.33. The stock is now traded at around $213.400000. The impact to a portfolio due to this purchase was 0.07%. The holding were 580 shares as of 2021-12-31.

Added: Alphabet Inc (GOOG)

Hoese & Co LLP added to a holding in Alphabet Inc by 400.00%. The purchase prices were between $2675.3 and $3014.18, with an estimated average price of $2894.54. The stock is now traded at around $2725.810000. The impact to a portfolio due to this purchase was 0.02%. The holding were 10 shares as of 2021-12-31.

Added: UnitedHealth Group Inc (UNH)

Hoese & Co LLP added to a holding in UnitedHealth Group Inc by 29.27%. The purchase prices were between $387.01 and $505.58, with an estimated average price of $454.21. The stock is now traded at around $460.990000. The impact to a portfolio due to this purchase was 0.02%. The holding were 212 shares as of 2021-12-31.

Added: Principal Financial Group Inc (PFG)

Hoese & Co LLP added to a holding in Principal Financial Group Inc by 124.00%. The purchase prices were between $65.12 and $73.93, with an estimated average price of $69.94. The stock is now traded at around $75.800000. The impact to a portfolio due to this purchase was 0.01%. The holding were 224 shares as of 2021-12-31.

Added: American Express Co (AXP)

Hoese & Co LLP added to a holding in American Express Co by 40.00%. The purchase prices were between $150.06 and $187.08, with an estimated average price of $170.39. The stock is now traded at around $166.170000. The impact to a portfolio due to this purchase was 0.01%. The holding were 280 shares as of 2021-12-31.

Added: United Parcel Service Inc (UPS)

Hoese & Co LLP added to a holding in United Parcel Service Inc by 130.00%. The purchase prices were between $178.42 and $218.07, with an estimated average price of $203.94. The stock is now traded at around $205.590000. The impact to a portfolio due to this purchase was 0.01%. The holding were 46 shares as of 2021-12-31.

Sold Out: Manulife Financial Corp (MFC)

Hoese & Co LLP sold out a holding in Manulife Financial Corp. The sale prices were between $17.93 and $20.54, with an estimated average price of $19.35.

Sold Out: Paychex Inc (PAYX)

Hoese & Co LLP sold out a holding in Paychex Inc. The sale prices were between $115.01 and $137.38, with an estimated average price of $123.94.

Sold Out: Ferrari NV (RACE)

Hoese & Co LLP sold out a holding in Ferrari NV. The sale prices were between $207.24 and $275.3, with an estimated average price of $247.39.

Sold Out: Diageo PLC (DEO)

Hoese & Co LLP sold out a holding in Diageo PLC. The sale prices were between $192.75 and $221.79, with an estimated average price of $205.45.

Sold Out: Kinder Morgan Inc (KMI)

Hoese & Co LLP sold out a holding in Kinder Morgan Inc. The sale prices were between $15.24 and $18.65, with an estimated average price of $16.62.

Sold Out: National Grid PLC (NGG)

Hoese & Co LLP sold out a holding in National Grid PLC. The sale prices were between $60.21 and $73.44, with an estimated average price of $66.16.

Here is the complete portfolio of Hoese & Co LLP. Also check out:

1. Hoese & Co LLP’s Undervalued Stocks

2. Hoese & Co LLP’s Top Growth Companies, and

3. Hoese & Co LLP’s High Yield stocks

4. Stocks that Hoese & Co LLP keeps buyingThis article first appeared on GuruFocus.

(UNH) - Analyzing UnitedHealth Group Inc.’s Short Interest

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UnitedHealth Group Inc.’s (NYSE:UNH) short percent of float has fallen 4.92% since last its last report. The company recently reported that it has 5.41 million shares sold short, which is 0.58% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.8 days to cover their short positions on average.

Why Short Interest Matters

Short interest is the number of shares that have been sold short but have not yet been covered or closed out. Short selling is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.

Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.

See Also: List of the most shorted stocks

UnitedHealth Group Inc. Short Interest Graph (3 Months)

As you can see from the chart above the percentage of shares that are sold short for UnitedHealth Group Inc. has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.

Comparing UnitedHealth Group Inc.’s Short Interest Against Its Peers

Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company’s peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company’s peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.

According to Benzinga Pro, UnitedHealth Group Inc.’s peer group average for short interest as a percentage of float is 2.88%, which means the company has less short interest than most of its peers.

Did you know that increasing short interest can actually be bullish for a stock? This post by Benzinga Money explains how you can profit from it..

This article was generated by Benzinga’s automated content engine and was reviewed by an editor.

Noteworthy Tuesday Option Activity: BAC, UNH, SONO

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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Bank of America Corp (Symbol: BAC), where a total volume of 336,049 contracts has been traded thus far today, a contract volume which is representative of approximately 33.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 66.7% of BAC’s average daily trading volume over the past month, of 50.4 million shares. Especially high volume was seen for the $45 strike put option expiring January 21, 2022, with 27,682 contracts trading so far today, representing approximately 2.8 million underlying shares of BAC. Below is a chart showing BAC’s trailing twelve month trading history, with the $45 strike highlighted in orange:

UnitedHealth Group Inc (Symbol: UNH) options are showing a volume of 21,172 contracts thus far today. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 65.7% of UNH’s average daily trading volume over the past month, of 3.2 million shares. Especially high volume was seen for the $480 strike call option expiring January 21, 2022, with 3,103 contracts trading so far today, representing approximately 310,300 underlying shares of UNH. Below is a chart showing UNH’s trailing twelve month trading history, with the $480 strike highlighted in orange:

And Sonos Inc (Symbol: SONO) saw options trading volume of 14,131 contracts, representing approximately 1.4 million underlying shares or approximately 61.9% of SONO’s average daily trading volume over the past month, of 2.3 million shares. Particularly high volume was seen for the $26 strike put option expiring January 21, 2022, with 1,815 contracts trading so far today, representing approximately 181,500 underlying shares of SONO. Below is a chart showing SONO’s trailing twelve month trading history, with the $26 strike highlighted in orange:

For the various different available expirations for BAC options, UNH options, or SONO options, visit StockOptionsChannel.com.

Today’s Most Active Call & Put Options of the S&P 500 »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.