TheChek News Flow

After Hours Summary: FLGT +5.5% on CDC award; SLDB -17.9% falls on clinical data, offering; NKLA -4% lower on stock offering

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SRT +5.8%, AMPH +3.3%, BEKE +3.2%, WPRT +2.9%, VUZI +0.8%

Companies trading higher in after hours in reaction to news: FLGT +5.5% (CDC has awarded a contract to provide genomic sequencing of samples of SARS-CoV-2 on an ongoing basis), ASC +3.4% (signs letter of intent with Element 1 Corp. and Maritime Partners to establish joint venture), TMST +1.6% (to increase base pricing on special bar quality products), NWSA +1% (NWSA reaches multi-year agreement with FB for news content in Australia), VTGN +0.4% (files for $250 mln mixed securities shelf offering), PBPB +0.3% (stock offering), INSP +0.1% (announces receipt of FDA approval for two-incision implant procedure), GFL +0.1% (to acquire Terrapure Environmental)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: HQY -1.8%

Companies trading lower in after hours in reaction to news: SLDB -17.9% (reports data from ongoing IGNITE DMD trial and resumes patient dosing in the 2E14 vg/kg cohort; also stock offering), CLSK -8.9% (stock offering; also files for mixed securities shelf offering), PARR -6.5% (stock offering), GMRE -6% (stock offering), RUBY -5.9% (stock offering), ACRE -5.6% (stock offering), IMAX -4.7% (convertible notes offering), NKLA -4% (stock offering), OPCH -3.9% (stock offering), MAXR -3.8% (stock offering; also files for mixed securities shelf offering), PAYA -2.6% (stock offering), SHC -1.5% (stock offering), ACCD -1.5% (stock offering), VLDR -1.5% (new COO), AKR -1.2% (reinstates dividend), AAP -0.4% (announces exec promotions, also plans to convert 109 Pep Boys stores in California to AAP stores), IPI -0.2% (raises price on Trio by $20 per ton), CDEV -0.2% (exchangeable notes offering; also files mixed securities shelf offering), FB -0.1% (NWSA reaches multi-year agreement with FB for news content in Australia), GVA -0.1% (awarded $42 mln Air Force Base improvement project in Guam), TDW -0.1% (names new CFO and COO)

Closing Stock Market Summary

The S&P 500 (+0.7%), Dow Jones Industrial Average (+0.5%), and Russell 2000 (+0.3%) set intraday and closing record highs on Monday, thanks to a strong finish in the last 30 minutes of action. The Nasdaq Composite (+1.1%) outperformed with a 1.1% gain. 

The session started on a meek note, with the major indices dipping into negative territory on no specific catalyst other than an apparent case of the Monday's after clocks moved forward an hour on Sunday. Classically, investors bought the intraday dip (S&P 500 was down 0.5% at its low), and nine of the 11 S&P 500 sectors closed in the green as buyers followed through. 

The information technology (+1.1%) and consumer discretionary (+1.2%) sectors provided the influential leadership for the benchmark index and were accompanied by the lightly-weighted utilities (+1.4%) and real estate (+1.2%) sectors. The Philadelphia Semiconductor Index advanced 2.3%. 

The energy (-1.3%) and financials (-0.6%) sectors, however, struggled throughout the day amid lower oil prices ($65.28/bbl, -0.25, -0.4%) and a decline in long-term interest rates, respectively. The 2-yr yield was unchanged at 0.14%, while the 10-yr yield decreased two basis points to 1.61%. The U.S. Dollar Index increased 0.1% to 91.78.

Travel-related stocks like airlines and casinos were among the biggest gainers amid lingering reopening optimism. 

The U.S. Global Jets ETF (JETS 28.71, +1.03, +3.7%) closed at a 52-week high after TSA data showed the highest number of passengers last Friday in a year and several airlines, including Southwest (LUV 62.10, +1.07, +1.8%) and Spirit (SAVE 39.31, +0.69, +1.8%), provided operational updates that highlighted improved bookings activity in March for leisure-based travel.

Positive catalysts in the casino space included Nevada casinos increasing capacity to 50%, media reports highlighting big crowds at the Las Vegas strip, Jefferies upgrading MGM Resorts (MGM 40.96, +1.98, +5.1%) to Buy from Hold, and the S&P Dow Jones Indices naming Penn Natl Gaming (PENN 136.47, +6.00, +4.6%) and Caesars Entertainment (CZR 101.20, +0.58, +0.6%) to the S&P 500, effective March 22. 

Separately, shares of Eli Lilly (LLY 189.16, -18.92, -9.1%) dropped 9% after failing to impress shareholders with expanded Phase 2 trial data for its Alzheimer's Disease drug, donanemab. Similarly, shares of Biogen (BIIB 260.13, -6.00, -2.3%) declined 2% following some cautious commentary for its Alzheimer's treatment at an analyst call. 

Monday's economic data was limited to the Empire State Manufacturing Survey, which increased to 17.4 in March (consensus 15.0) from 12.1 in February. Looking ahead to Tuesday, investors will receive Retail Sales for February, Industrial Production and Capacity Utilization for February, the NAHB Housing Market Index for March, Business Inventories for January, and Import and Export Prices for February.

• Russell 2000 +19.5% YTD
• Dow Jones Industrial Average +7.7% YTD
• S&P 500 +5.7% YTD
• Nasdaq Composite +4.4% YTD

Early premarket gappers

• Gapping up:
  • ATRA +8.9%, AUPH +5.5%, CTAC +5.2%, RIDE +5.2%, X +5%, RACA +4.8%, BLUE +4.2%, LUV +2.1%, HOLI +2%, BA +1.4%, DFS +1.3%, LMT +0.8%, JPM +0.8%
• Gapping down:
  • LLY -5%, ASHR -1.8%, STPK -1.7%, FXI -0.8%, BABA -0.7%, JD -0.4%, BIDU -0.4%, VXX -0.4%, BEAM -0.4%