U.S. equities moved lower on Monday, a consolidation after the extreme moves seen in a handful of tech stocks on Friday following key earnings reports. Small-cap stocks were hit particularly hard — a reminder of the terrible market breadth that’s been in play lately — resulting in the worst one-day decline since August.
The catalyst fell in the form of the House’s five-year corporate tax-rate cut (down 3% per year, hitting 20% in 2022) plan, on concerns about the hit to revenues. Moreover, there is fear that fighting over individual deductions — like mortgage interest deduction — could torpedo the entire effort.
In the end, the Dow Jones Industrial Average lost 0.4%, the S&P 500 lost 0.3%, the Nasdaq Composite lost a fraction and the Russell 2000 gave back 1.2%. Treasury bonds were stronger, the dollar declined, gold gained 0.5% and crude oil gained 0.5%.
Click to EnlargeREITs led the way with a 0.6% gain with tech stocks up another 0.4%. Telecom underperformed on word M&A talks between T-Mobile US Inc (NASDAQ:TMUS) and Sprint Corp (NYSE:S) have broken down, losing 1.4%. Healthcare lost 1.1%.
10 best stocks: Intersil Corporation(ISIL)
- [By Scott Rubin]
Big gainers on the day included Intersil Corp (NASDAQ: ISIL), which jumped 20 percent on news of a buyout, and Medivation (NASDAQ: MDVN), which added 20 percent on a deal with Pfizer (NYSE: PFE) related to its cancer drug. Cotiviti Holdings Inc (NYSE: COTV) lost around 9 percent in the wake of a mid-day sell-off and Marathon Oil Corporation (NYSE: MRO) fell 7 percent in the wake of a management shakeup.
10 best stocks: Santander Consumer USA Holdings Inc.(SC)
- [By Jim Robertson]
On Friday, our Under the Radar Moversnewsletter suggested going long on small cap consumer financestock Santander Consumer USA Holdings (NYSE: SC):
- [By Wayne Duggan]
Height Financial Services analyst Edwin Groshans believes Credit Acceptance Corp, Santander Consumer USA Holdings Inc (NYSE: SC), Ally Financial Inc (NYSE: ALLY) and Capital One Financial Corp. (NYSE: COF).
10 best stocks: Arlington Asset Investment Corp(AI)
- [By Money Morning Staff Reports]
The first stock on our list today is Arlington Asset Management Corp. (NYSE: AI), which primarily acquires and holds mortgage-related assets. The company’s portfolio consists mostly of agency-backed mortgage-backed securities (MBS) and private-label, residential MBS. The best part is its massive 17.4% dividend yield.
10 best stocks: SeaWorld Entertainment, Inc.(SEAS)
- [By Peter Graham]
The Q4 2016 earnings report for troubled small capSeaWorld Entertainment Inc (NYSE: SEAS) is scheduled for before the market opens onTuesday (February 28th) as the company still grapples with thefallout generated from the highly critical documentary Blackfish. On Tuesday, SeaWorld Entertainment reportedthat preliminary total 2016 revenues were expected to be $1.344 billion and total attendance was approximately 22.0 million guests for the year. The CEO commented:
- [By Benzinga News Desk]
In the parched terrain just south of the United States border, the prices of food and other necessities follow the dollar, whose value has been climbing: Link
Industrial Production (MoM) for Feb 0.00% vs 0.20% consensus estimate; Manufacturing Outputs (MoM) for Feb 0.50% vs 0.40% consensus estimate.
The University of Michigan's consumer sentiment index for March is schedule for release at 10:00 a.m. ET.
The index of leading economic indicators for February will be released at 10:00 a.m. ET.
The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.
Wunderlich upgraded Adobe Systems (NASDAQ: ADBE) from Hold to Buy
FBR Capital upgraded L Brands (NYSE: LB) from Market Perform to Outperform
Morgan Stanley upgraded Dean Foods (NYSE: DF) from Neutral to Overweight
Baird downgraded Patheon (NYSE: PTHN) from Outperform to Neutral
Citigroup downgraded SeaWorld Entertainment Inc (NYSE: SEAS) from Neutral to Sell
Goldman Sachs downgraded Macerich (NYSE: MAC) from Neutral to Sell
This is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. To get the full version of this note every morning, click here or email firstname.lastname@example.org.
- [By Ben Levisohn]
SeaWorld Entertainment (SEAS) has dropped 2.2% to $18.47 after getting cut to Sell from Neutral at Citigroup.
Valeant Pharmaceuticals International (VRX) has jumped 4.3% to $11.68 after activist investor ValueAct bought three million shares of the beaten-down specialty pharmaceutical company.
10 best stocks: Ethan Allen Interiors Inc.(ETH)
- [By Dan Caplinger]
Wednesday was a strong day for the stock market, as the Dow finished up nearly 100 points and the S&P 500 and Nasdaq both posted gains as well. Investors remained generally upbeat about the prospects for the U.S. economy in 2017, and a rise in crude oil prices helped lift the energy sector higher during the market session. Yet comments during a press conference from President-elect Donald Trump weighed on the healthcare sector, and some individual stocks took particularly hard hits. Among the worst performers were Perrigo (NYSE:PRGO), Novadaq Technologies (NASDAQ:NVDQ), and Ethan Allen Interiors (NYSE:ETH). Below, we’ll look more closely at these stocks to tell you why they did so poorly.