Post-Bell | Nasdaq, S&P Rally Over 1%; Lululemon Soars 10% While Vaccine Shares Drop
Wall Street jumped and benchmark Treasury yields climbed on Monday as investors embarked upon the first full week of third-quarter earnings while keeping a close eye on the Israel-Hamas conflict.
Market Snapshot
The Dow Jones Industrial Average rose 314.25 points, or 0.93%, to 33,984.54, the S&P 500 rose 45.85 points, or 1.06%, to 4,373.63 and the Nasdaq Composite rose 160.75 points, or 1.20%, to 13,567.98.
Market Movers
These stocks made moves Monday:
$Pfizer(PFE)$ slashed revenue expectations for the year to $58 billion to $61 billion, down from a previous outlook of $67 billion to $70 billion as the drug maker expects a drop in sales of $9 billion from its Covid-19 vaccine and anti-viral treatment Paxlovid. Pfizer also forecast adjusted earnings $1.45 to $1.65 a share, down from a prior range of $3.25 to $3.45. Pfizer shares closed up 3.6% after falling during the premarket session. Analysts at Jefferies upgraded the stock to Buy from Hold.
Shares of $Pfizer(PFE)$’s Covid vaccine partner, $BioNTech (BNTX)$, dropped 6.4%. Other Covid vaccine makers $Moderna (MRNA)$, and $Novavax (NVAX)$ declined 6.5% and 6%, respectively.
Separately, reports from the Financial Times and Reuters said European Union regulators delayed a decision to approve Novavax’s revised Covid-19 vaccine.
$Charles Schwab (SCHW)$, the largest publicly traded U.S. brokerage, reported third-quarter adjusted earnings of 77 cents a share, beating analysts’ estimates of 74 cents. Revenue fell 6% to $4.61 billion. The stock rose 4.7%.
$Lululemon Athletica (LULU)$ was up 10% to $416.64. It will be joining the S&P 500 on Wednesday, replacing $Activision Blizzard (ATVI)$, which was acquired by $Microsoft (MSFT)$ last week.
$Alignment Healthcare (ALHC)$ jumped 17% to $7.76 after shares of the provider of health care services for seniors were upgraded to Strong Buy from Outperform at Raymond James and the price target was raised to $10 from $9.
$Instacart (CART)$ was initiated with a Buy recommendation at Goldman Sachs and a price target of $48. Shares of the grocery delivery service, which officially is known as Maplebear, also were initiated with Buy ratings at Baird, Stifel, and Piper Sandler. The stock was down 2.8% to $24.85.
Starboard Value has built a stake in $News Corp (NWSA)$ and the activist shareholder plans to push for strategic and governance changes, The Wall Street Journal reported, citing people familiar with the matter. Starboard’s stake in News Corp is “sizeable,” the people said. News Corp is the owner of Dow Jones, which publishes the Journal, Barron’s, and MarketWatch. News Corp’s class A shares rose 4.7%.
$Varonis Systems (VRNS)$ was rising 6.7% to $32.63 after shares of the cybersecurity company were upgraded to Overweight from Equal Weight and the price target was boosted to $39 from $34.
$Rite Aid (RAD)$ filed for bankruptcy late Sunday, plans to close more of its stores and named a new chief executive as part of a restructuring. The stock fell 16.8% to 65 cents. Competitor $CVS Health (CVS)$ was flat.
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