Top Business News of the Week: AT&T, NVIDIA, MannKind, PG&E, Walmart and Many More
The Dow and S&P 500 are at all-time highs, and the bull market is now closer to nine years old than eight. Even though the indexes are all well above 200% from their 2009 lows, the reality is that it is not a bull market everywhere. There are also a lot of news items outside of earnings that have to be considered by equity investors.
24/7 Wall St. has compiled 10 of the top business news items, where there was specific company news driving the shares, for the week ended Friday, October 13, 2017.
Some great performance was seen, but there were also some serious let downs. These were certainly not the only big movers for the week, but these were definitely among the top business news stories making an impact on shares. More detail from our prior in-depth coverage is available on most of these stories.
AT&T Inc. (NYSE: T) is still trading down like it’s just an old-fashioned telecom player without a diversified future for DirecTV and Time Warner. Its shares were down big this past week over lost accounts and from costs related to hurricane damage. AT&T shares were trading at $35.70 on Friday’s close, just above the 52-week low of $35.10, for a drop of 7.5% for the week. The only good news right now is that its dividend yield is back up to about 5.5% for new investors.
Barracuda Networks Inc. (NYSE: CUDA) seems to be a great company in networking and security, but meeting expectations sometimes isn’t enough for solid tech companies. Its shares recovered a bit from a low of $22.01 during the week to $22.50 late on Friday. Still, that is down over 12% from its pre-earnings price of $25.74 earlier this week. The 52-week trading range is $19.06 to $26.40.
CarGurus Inc. (NASDAQ: CARG) proved yet again that the IPO market is not dead. It exploded higher after pricing 9.4 million shares at $16 per share, and that was even above the expected price range of $13 to $15 per share. This stock was close to $29.00 late on Friday, and the lowest trade post-IPO was $25.85. Let’s call this 80% premium to the original pricing.
Infinity Pharmaceuticals Inc. (NASDAQ: INFI) reminded biotech investors that a company doesn’t have to be acquired for its shares to almost double. The small-cap biotech released positive solid tumor treatment news for a presentation this week, and its shares rose from $1.67 ahead of the news to as high as $3.75 afterward on 60 million shares. The stock was back down at $2.90 by the end of the week, after some serious profit taking, but that would still be around an 85% gain.
J. Jill Inc. (NYSE: JILL) lost about half of its value on poor sales expectations this week. The ladies apparel retailer was trading at $5.11 late on Friday’ close, for a drop of near 51% from its $9.93 price before releasing its forecast. To make matters worse, J. Jill shares were at $10.62 just the prior Friday, and the stock’s 52-week high is $14.40. Losing almost two-thirds of your value is no good, and it’s hard to just blame Amazon and e-tailing for a drop of that magnitude.