With the Chicago Board Options Exchange Volatility Index, better known as the VIX Index, nearing year-to-date highs we would expect short selling in VIX related ETFâ€™s and ETNâ€™s to not only be active, but also trend significantly upwards as traders and portfolio managers sell volatility. While we are seeing a slight bump up of VXX ETF short selling over the last several days, we are not seeing the increase in short selling in the remaining eight actively shorted VIX ETFâ€™s\ETNâ€™s that we observed at the start of both 2018 vol spikes.
Short selling in Qualcomm Inc (QCOM) continues to increase after the April 16th announcement of their legal settlement with Apple Inc (AAPL.) QCOM shares shorted have increased by 14.1 million shares, +76%, since the settlement even though its stock price has jumped by over $29/share, +51%.
Both Tesla Inc (TSLA) and NIO Inc (NIO) had reports of vehicles fires in Shanghai and Xiâ€™an China which is highlighting safety fears over electric vehicles and the use of high density lithium batteries. TSLA is down -3.6% over the past two days while NIO is up slightly, +0.84%.
Bank of America Merrill Lynch analyst George Staphos issued a research report stating that March containerboard and box shipments declined by 3% year-over-year and industry wide inventories were declining at a lesser rate than deliveries. Containerboard purchases fell and supply\production is running ahead of demand.
Netflix, Inc (NFLX) will be releasing their earnings after the bell today. The big question is whether the largest internet subscription service will be able to follow up last yearâ€™s surge in subscriber growth with another blockbuster year or will competition from Amazon.com Inc (AMZN), stand alone streaming channels and pending Apple Inc (AAPL) and Walt Disney Co (DIS) streaming services take a bite out of their meteoric growth path.
Weâ€™re seeing continued short covering today in Charles Schwab CorpÂ (SCHW), over 500k of new buys to cover this morning.
SCHW short interest is $686.7 million; 15.14 million shares shorted; 1.26% of float; 0.30% stock borrow fee.
Chevron Corp (CVX) is acquiring Anadarko Petroleum Corp (APC) for $33 billion in cash and stock to join the ranks of Exxon Mobil Corp (XOM), Royal Dutch Shell PLC (RDS/A) and BP PLC (BP) as one of the major worldwide oil producers.
Bed Bath & Beyond (BBBY US) short interest is currently 48.26 million shares, 36.7% of float, $936.7 million notional exposure.
Over the first 3 months of 2019, short interest was up 17.5 million shares, or 55% on a shares shorted basis; and up $475.5 million, or 133% on a notional exposure basis.
Weâ€™re seeing increased short selling in the other Electric Vehicle manufacturer, NIO Inc (NIO) today.
NIO short interest is $420 mm; 84.40 mm shares shorted; 10.97% of float; 1.65% borrow fee.
Shares shorted are up 40.9 mm shares,+94%, in 2019 and up 24.8 mm shs,+41.7% in March and we are seeing continued short selling today, over one million additional shares shorted in morning trading.
Bed Bath & Beyond Incâ€™s (BBBY) stock price rallied 22% on March 27th when it was reported that three activist investment funds, Legion Partners, Macellum Advisors and Ancora Advisors are looking to wage a proxy battle for control of the domestic merchandise and home furnishing retailer. The funds are looking to completely overhaul both the entire board of directors and replace CEO Steven Temares.