When investors see a major sell-off, they often freeze like a deer in the headlights. And many investors had said for the better part of a year that they just wanted a 10% pullback so they could get into (or deeper into) the stock market. But what about on days where the major equity indexes are down an average of 3%?
Many investors have started to question whether the bull market simply became too bullish. After all, there are so many pressures at work now that it is getting harder for the average investor to look through the rain and see sunlight.
Some days the stocks trading higher on a down day are the defensive stocks with strong earnings and solid dividends. That is not the case on Monday, as the following shares were all higher on news or on catalysts.
MediciNova Inc. (NASDAQ: MNOV) often has zero market correlation, with a mere $500 million market cap, and that’s after a 20% rally to $12.35 on more than five times normal trading volume. MediciNova is terminating its NASH/NAFLD Phase 2 trial early due to positive results. This stock has a 52-week high of $14.50, and it had a consensus analyst target price from Thomson Reuters of $15.00 ahead of the news.
Commvault Systems Inc. (NASDAQ: CVLT) is surging on news that Paul Singer’s Elliott Management has taken a 10% equivalent stake and is seeking to elect members to its board. Commvault shares were last seen up 10.6% at $63.25 on twice-normal trading volume.
AngloGold Ashanti Ltd. (NYSE: AU) may not be a U.S.-based gold miner and producer, but gold stocks were up and this was the largest gainer. AngloGold shares were last seen up 3.6% at $9.83, but not on active trading volume.
Humana Inc. (NYSE: HUM) is seen as being in talks with Walmart for an expanded health coverage or for an outright acquisition by the world’s largest retailer. Humana shares were last seen up 3.5% at $278.14 in active trading. Humana shares had been up 7% earlier in the trading session.
Science Applications International Corp. (NYSE: SAIC) topped earnings estimates a few days ago, and the stock is up after Jefferies raised its price target. Its market cap is $3.5 billion, and its shares were up 2.6% at $80.85 in mid-afternoon trading.
IQIYI INC. (NASDAQ: IQ) is continuing its fresh IPO interest. The Chinese video platform provider was last seen up 1.5% at $15.79, but that’s still down from the post-IPO high of $18.50.
On last look the Dow Jones industrial average was down 677 points, or 2.8%, at $23,425, the S&P 500 was down 3.0% and the Nasdaq Composite was down 3.4%.