Why Microsoft, Nokia, Spherix, Dynegy, and Best Buy Are Making Moves Today

The major U.S stock indexes are trading up on Wednesday afternoon, helped by surging oil prices and the resulting spike in energy stocks, which were already coming off of very strong gains on Tuesday. Materials stocks are also driving the rise in the markets today. Among the day’s trending stocks are Nokia Corp (ADR) (NYSE:NOK), Spherix Inc (NASDAQ:SPEX), Dynegy Inc. (NYSE:DYN), Best Buy Co Inc (NYSE:BBY), and Microsoft Corporation (NASDAQ:MSFT), not all of which are enjoying the day’s overall gains. We’ll check out what’s happening with them in this article and see what the hedge funds in our database think about these companies.

At Insider Monkey, we track around 760 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).

Nokia Surges On 5G Talks, Upgrade

Let’s start with Nokia Corp (ADR) (NYSE:NOK), which is up by more than 4% this afternoon, driven by several events. First off, it was reported that Nokia Networks is currently holding talks with telecom operators in India to begin testing 5G networks in the country, even though 4G networks have not yet been fully deployed. Milivoj Vela, Nokia Networks Head of Mobile Broadband assured that by 2020, 5G networks will begin to be commercially deployed and will deliver 100Mbps of Internet speed, everywhere. In other news, research firm CLSA upgraded shares of Nokia to ‘Outperform’ from ‘Underperform’, and boosted its price target on the stock by $1.00 to $6.25.

Among the funds that we track, 20 were long Nokia Corp (ADR) (NYSE:NOK) at the end of the first quarter of 2016. The largest stake was held by Jim Simons’ Renaissance Technologies, which disclosed ownership of 15.77 million shares worth roughly $93 million on March 31.

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Spherix Tumbles After Tuesday’s Rally

Opposite to Nokia, Spherix Inc (NASDAQ:SPEX) is trading down, by roughly 11.4% on Wednesday afternoon, after it gained an impressive 60.73% on Tuesday after the announcement of its licensing deal with RPX Corp (NASDAQ:RPXC). However, shares are tumbling today following the release of a letter to shareholders in which the company assured that, aside from the multi-million dollar license agreement, which was “a major milestone for Spherix,” it is “actively exploring viable opportunities outside of the patent monetization space.”

As with most nano-cap companies, Spherix Inc (NASDAQ:SPEX) does not count a lot of hedge fund supporters. In fact, none of the funds that we keep track of disclosed long equity stakes in the company as of the end of the first quarter of the year.

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We’ll cover three more of today’s top market movers on the next page.