As we make our way to the end of the year, top money managers and investors of all types will begin to go away for the holiday season and focus their time on family and relaxation rather than the stock market. Today’s CPI number and Wednesday’s FOMC decision will likely facilitate higher volumes and some market movement. However, volumes will probably dry up as we enter the end-of-year doldrums. Nevertheless, catalyst-driven moves such as earnings reports, analyst movements, and surprise company-specific headlines are worth monitoring. Below, we will cover 5 of the top headline-driven moves.
Shares of the leading aerospace company rose by nearly 4% after a positive analyst note from JP Morgan JPM. JPM raised their outlook on the airplane maker to “overweight” and cited catalysts including the return of production of the 787 and the re-certification of the troubled 737 Max in China, the largest airplane market in the world.
Rivian Automotive RIVN: Monday, the Amazon AMZN backed electric car start-up slid 6% to more than 6-month lows on news that the company would be scrapping plans to pursue a joint venture with German luxury car maker Mercedes Benz. Ceo RJ Scaringe cited in a statement that “We pursue the best risk-adjusted returns based on our capital”. Rivian has yet to post a profit as a public company and sports a mediocre Zacks Ranking of 3. Shares rebounded on Tuesday after the surprise drop in CPI data was announced.
Oracle ORCL: Database software giant Oracle reported earnings of $1.21 per share, outpacing the Zacks Consensus Estimates of $1.17 per share. Shares gained 1.78% Monday and were up more than 4% early in Tuesday’s session. Oracle shares have been on the mend in recent weeks. Earlier in the month, Oracle, Amazon, Microsoft MSFT, and Alphabet GOOGL won a piece of a pentagon contract totaling an estimated $9 billion. The technical picture for ORCL shows that the 50-day moving average is crossing over the 200-day moving average in what is known as a “Golden Cross”, a bullish sign for shares.
Pictured: AMGN’s 50-day crosses over its 200-day to form a “Golden Cross” pattern.
Software stocks were already strong after news broke that private equity firm Thoma Bravo will take Coupa Software COUP private in a deal worth over $6 billion. Elsewhere in software, shares of Box Inc BOX launched higher after an upgrade, while Nutanix NTNX worked on its 8th straight week in the green.
Horizon Therapeutics (HZNP): Amgen AMGN acquired shares of Horizon Therapeutics in a $27.8 billion mega-deal announced and hammered out over the weekend. Shares of Horizon jumped 15% on the news. Amgen has a Zacks Rank of 3 however, the company has been performing well as of late and is highly profitable. AMGN pulled back slightly on the news and is testing its rising 50-day moving average, a dip buying zone often used by intermediate traders.
Pictured: AMGN is looking to get support at its rising 50-day moving average – a key level for intermiediate speculators.
Moderna MRNA: The therapeutic and vaccine maker saw shares rise by nearly 20% early Tuesday after news broke that Moderna’s mRNA vaccine for melanoma reduced death and recurrence of disease in a Phase 2 trial. Moderna’s drug is taken in combination with Merck’s MRK Keytruda drug. Shares of MRK were little changed. Moderna’s stock is rebounding from an initial slowdown after enjoying windfall profits from its Covid 19 vaccine. The stock found clear support at its 50-day moving average as volume traded above the 50-day average just minutes into the session.