NOTE: Trending tickers is an index compiled exclusively by Yahoo Finance every day. It’s a list of companies whose stocks are seeing the biggest bump in interest as measured by your Yahoo Finance Ticker searches.
Today’s ticker is J.C. Penney (JCP). Shares of the embattled retailer are moving higher again today on big volume. The stock is up more than 40% in the last five trading sessions after the company reported better than expected earnings and the end of an SEC investigation into accounting with regards to liquidity.
Speaking of liquidity it’s hard to talk about the rally in J.C. Penney without mentioning the fact that it was one of the most heavily shorted names in the entire S&P (^GSPC) coming in to 2014. Nearly half of the entire float of shares outstanding were in the hands of the bears prior to the company's latest earnings report.
Those shorts are being forced to cover their positions and buy back JCP shares or suffer unknowable levels of financial pain.
There are a couple of points I want to make here. First is that JCP’s stock is still down 20% for the year. For everyone who claims to have bought the bottom last week there are a dozen folks underwater.
Two, shorting is hard. Enough said.
Three you don’t have to play every name that makes headlines. As is the case with J.C. Penney sometimes the market is just good theater.
Also making Yahoo Finance's Trending Ticker list today are:
JinkoSolar Holding Co. (JKS)
Dendreon Corp. (DNDN)
Central European Media Enterprises (CETV)
and STILL holding on today...Zulily (ZU)
That’s your trending ticker for today. We’ll see you back here tomorrow.