This Week in Emerging Growth: Maybe the “Second Amendment People” Can Take Care of the Economy, While They’re at It…

Joel Anderson  |

Well, it was another bizarre week on the campaign trail as both candidates visited the Metro Detroit area (note to major news outlets: Warren is not Detroit) to give economic policy speeches. That wasn’t bizarre, though. Rather, it was Donald Trump seemingly implying that it might be a good idea to assassinate his opponent and then stating that President Obama and Hillary Clinton “founded” ISIS, doubled down on the claim, then insisting that he was being “sarcastic.” It was a strong week for markets, however, as the Dow, S&P 500, and Nasdaq all hit record highs on Thursday, the first time all three did so concurrently since 1999.

Major News Recap:

The Week’s Market Action

S&P 500: +0.91 or 0.04% to 2,184.05

Nasdaq: +11.32 or 0.22% to 5,232.90

Top-performing Stocks:

Top Performers

Company

Gain

Bottom Performers

Company

Loss

Mega-Cap

Alibaba Group (BABA)

$13.66 or 16.15% to $98.25

Mega-Cap

Wells Fargo (WFC)

$0.79 or 1.62% to $47.90

Large-Cap

Macy’s (M)

$5.72 or 16.77% to $39.82

Large-Cap

KLA-Tenor Corp (KLAC)

$9.13 or 11.79% to $68.28

Mid-Cap

Mattress Firm Holding Corp (MFRM)

$34.10 or 114.66% to $63.84

Mid-Cap

United States Steel Coproration (X)

$5.46 or 20.61% to $21.06

Emerging Growth Company News

It was a big week for major acquisitions as the Russell 2000 declined slightly despite gains in the major indices as small-cap earnings didn’t show as much strength as their mid- and large-cap brethren.

Russell 2000 Performance: -1.61 or 0.12% to 1,229.82

Emerging Growth Stock Performance:

Top Performers

Company

Gain

Bottom Performers

Company

Loss

Small-Cap

DXP Enterprises (DXPE)

$11.48 or 69.45% to $28.01

Small-Cap

Impax Laboratories (IPXL)

$9.06 or 29.43% to $21.72

Micro-Cap

Resolute Energy Corp (REN)

$7.77 or 115.11% to $14.43

Micro-Cap

SAExploration Holdings (SAEX)

$20.29 or 61.5% to $12.70

Deals Recap:


Emerging Growth Company News

  • Retail goliath Wal-Mart (WMT) snapped up online retail, um, David, Jet.com for some $3.3 billion. Wal-Mart is likely doing this with an eye on Amazon (AMZN) and building an online infrastructure to help them stay better prepared for the future. I wonder if they’re going to get two-day shipping on this purchase…
  • A recent study appears to indicate that the weakening in capital flow to startups from the second half of 2015 is an ongoing trend that has continued into the second quarter of 2016. Given that valuations reached an all-time high in mid-2015, this correction is likely no surprise, but it’s worth keeping an eye on to see how far things fall before finding a new bottom.
  • Share in Impax Laboratories (IPXL) were plunging Tuesday after the company’s Q2 earnings showed lower-than-expected profits and weaker-than-expected guidance for the rest of the year. The company ultimately shed nearly 30% of its value by week’s end, falling to $21.72 a share.
  • This week’s victim of the small-cap Biotech’s high-stakes game of “Cross Your Fingers and Wait for Clinical Results” was Array Biopharma (ARRY), which saw shares plunge more than 20% after the lung cancer drug it’s developing in a partnership with AstraZeneca (AZN), selumetinib, failed a Phase III clinical trial.
  • Health benefits platform Castlight Health (CSLT) saw shares leap on Tuesday following a solid Q2 earnings report.
  • Job-finding website Monster Worldwide (MWW) agreed to an acquisition price of $429 million, a premium of 23% over Monday’s close, from Randstad Holdings. In the event that Randstad decides to downsize, at least Monster’s employees will have an idea of how to get their job search started.
  • Computer maker Hewlett Packard Enterprises (HPE) is snapping up data management company Silicon Graphics International (SGI) for some $275 million.
  • Ocean Rid UDW (ORIG) delivered a big earnings beat in its Q2 earnings, released after the closing bell on Thursday. However, that particular piece of information was somewhat overshadowed by the company’s warning that adverse market conditions may force it to file for bankruptcy, which had shares down more than 60%.
  • Plastics company A. Schulman (SHLM) shed more than a quarter of its value this week after it lowered its full-year 2016 guidance by more than $0.50 a share.
  • Semiconductor company Alpha and Omega Semiconductor (AOSL) saw shares explode by more than a third after a Q4 earnings report showed them beating Wall Street profit forecasts.

Top Reads of the Week



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Companies

Symbol Name Price Change % Volume
BABA Alibaba Group Holding Limited American Depositary Shares each representing eight 212.59 -5.45 -2.50 17,700,801 Trade
YELP Yelp Inc. 34.00 -0.64 -1.85 786,967 Trade
JWN Nordstrom Inc. 40.54 -0.54 -1.31 1,518,326 Trade
DAL Delta Air Lines Inc. 57.87 -0.51 -0.87 6,296,079 Trade
GS Goldman Sachs Group Inc. (The) 230.62 -2.11 -0.91 3,082,273 Trade
M Macy's Inc 16.23 -0.41 -2.46 8,123,406 Trade
MWW Monster Worldwide Inc. n/a n/a n/a 0 Trade
CSLT Castlight Health Inc. Class B 1.25 -0.06 -4.58 599,165 Trade
SAEX SAExploration Holdings Inc. 2.43 -0.13 -5.08 52,787 Trade
KSS Kohl's Corporation 44.55 -0.22 -0.49 2,448,502 Trade
IPXL AMRX Impax Laboratories Inc. n/a n/a n/a 0
SGI Silicon Graphics International Corp n/a n/a n/a 0 Trade
X United States Steel Corporation 9.43 0.16 1.73 10,995,563 Trade
WFC Wells Fargo & Company 47.70 0.36 0.76 21,729,106 Trade
KLAC KLA Corporation 161.12 -6.18 -3.69 1,909,894 Trade
AZN Astrazeneca PLC 50.17 1.23 2.51 4,105,822 Trade
DXPE DXP Enterprises Inc. 32.74 -0.28 -0.85 46,940 Trade
MFRM Mattress Firm Holding Corp. n/a n/a n/a 0 Trade
AOLS Aeolus Pharms Inc 0.00 0.00 45.00 40,000
HPE Hewlett Packard Enterprise Company 14.18 -0.29 -2.00 8,480,256 Trade
WMT Walmart Inc. 118.58 0.89 0.76 6,242,526 Trade
AMZN Amazon.com Inc. 2,095.97 -57.13 -2.65 4,650,740 Trade
DIS The Walt Disney Company 138.97 -1.40 -1.00 7,725,829 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

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