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T3's Take 3: GoPro Gets a Short Squeeze on Takeover Talk


Today's financial recap and tomorrow's financial outlook.

Market Roundup

Stocks roared back to life on Thursday following a morose first half of the week.

On Wednesday, the VIX spiked over 20, resulted in an inverted VIX curve, indicating that traders were very negative, setting the stage for a near-term bottom.

Tech stocks outperformed today, driving the NASDAQ up 0.4% to 5045.17. Major names like Apple (AAPL) and Facebook (FB) did the heavy lifting, aided by a 1.3% surge in the NASDAQ Biotechnology Index ETF (IBB).

The S&P 500 closed up 0.2% at 2052.22, led up by energy of all sectors. The S&P Energy Sector ETF (XLE)  rose a very solid 0.6% despite a drop in oil prices.

Pharmaceutical, transportation, and industrial stocks also aided the bulls' cause.

On the downside, utilities stocks fell 1.7%, and financials were weak despite higher US Treasury yields and a strong dollar.

Energy and Oil

Crude oil continues to exhibit significant intraday volatility but once again ended down, falling 19% to $36.47, putting it within striking distance of the 2009 low at $33.20.

OPEC announced today that it raised production in November to a three-year high despite the slump in prices. And according to Bloomberg News, US crude inventories are roughly 120 million barrels above the five-year average.

However, as noted above, energy stock rose today despite falling crude oil, which is a repeat of yesterday's action.

One energy stock standout today was Rice Energy (RICE) which rose 2.7% after being initiated with a Buy at Stifel.

Energy Master Limited Partnership Kinder Morgan, (KMI), which announced a major dividend cut on Tuesday, had another positive day and finished up 1.2%.

GoPro Goes Bananas

Embattled sports camera maker GoPro (GPRO) rose a whopping 11.5% to $18.83 today as takeover speculation reared its head.

FBR & Co. analyst Dan Ives argued that Apple (AAPL) should acquire GoPro, driving a massive short squeeze.

According to Bloomberg data, over 38% of GoPro's float is sold short, and ahead of today's rally, the stock was down 73.3% year-to-date.

And in general, beaten-down tech stocks performed well today. For example, former highflyers Twitter (TWTR), Cyber-Ark Software (CYBR), and FireEye (FEYE) all sported impressive gains.

Friday's Financial Outlook

On the calendar for Friday,  Retail Sales, Business Inventories, and Consumer Sentiment will be released.

Overseas, there are no important releases on the calendar.

There are also no earnings reports..
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