In a reversal of last Thursday, the U.S. markets Tuesday tended to favor energy and reject health care. What a difference a week makes.
Patterson-UTI Energy Inc. (NASDAQ:PTENC) closed up 6.39% or $1.29 at $21.49 on volume of 5,640,000 shares. Latest rig count shows a substantial decrease from a year ago and reflects a curb on operating expenses. Zacks says the decline will likely affect earnings and cash flow moving forward.
Hertz Global Holdings, Inc. (:HTZN/A) ended up 5.85% or $0.63 at $11.40 on volume of 13,850,000 shares. Carl Icahn’s announced purchase of nearly 1 million shares earlier this month likely encouraged Wall Street. Hertz says it will split its car and equipment rental operations by the end of June.
Cheniere Energy, Inc. (AMEX:LNGC) closed up 5.80% or $1.95 at $35.59 on volume of 2,610,000 shares. Citigroup Inc. (NYSE:CC) analysts’ confidence in new CEO Jack Fusco likely led Citi to reiterate its “buy” rating on the stock. One potential downside - a decrease in hedge fund interest.
Nabors Industries Ltd. (NYSE:NBRC) ended Tuesday up 5.65% at $10.85 on trading volume of 11,600,000 shares. A mini-oil price surge, above $50, and the possibility producers will spend on rigs has companies like Nabors on the rise.
Valeant Pharmaceuticals International, Inc. (NYSE:VRXC) led the “down crowd” Tuesday, falling -14.59% ending at $24.64. Volume was 103,950,000 shares. Today’s action represented a 6-year low for Valeant. Cutting guidance and missing Q1 estimates did not help.
Ionis Pharmaceuticals Inc. (NASDAQ:IONSC) was off -8.07% closing at $22.33 on volume of 3,420,000. Unprofitable Ionis needed the damages it lost today when the court ruled against it and partner, Merck & Co. Inc. (NYSE:MRKC). Chances for Ionis to collect now are considered very slim.
Chinese retailer, JD.com Inc. (TSX:JDC), fell 5.62% closing at $22.01 on volume of 35,780,000. APS senior analyst, Sid Choraria, wasn’t surprised. In a nutshell, Choraria believes the hedge fund favorite is wildly overvalued.
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Companhia Siderurgica Nacional (NYSE:SIDA) finished Tuesday off 5.16% at $2.02 on volume of 2,540,000 shares. Although Brazilian stocks like SID have outperformed equity markets so far in 2016, political challenges, high inflation and unemployment have taken their toll.