The bull is back! Wall Street’s bulls came out roaring this morning amid better than expected news of car sales by Ford Motor Company (F), General Motors Company (GM), and Fiat Chrysler Automobiles NV (FCAU). After the commerce department reported a 1.1% increase in construction spending for October, the market maintained its gains.
Although crude oil retreated, energy stocks were higher today, as were the healthcare and utility sectors. Market strength was diversified today, as can be seen in broad-based stocks such as Biogen Idec Inc (BIIB), Cypress Semiconductor Corporation (CY), and MOL Global Inc (MOLG), which were three of the best stocks of the day.
Biogen Idec Inc (BIIB)
BIIB stock gapped above both its 50- and 200-day moving averages to finish more than 6% higher after the company announced plans to move a new Alzheimer’s treatment, known only as BIIB 037, from Phase I to Phase III testing. Doug Williams, the Executive Vice President of Research and Development, told a Deutsche Bank Biofest Conference in Boston that the drug has shown significant positive effects on cognition, and a decrease in amyloid deposits on the brain. The drug was tested on patients for 54 weeks during the Phase I study.
BIIB stock traded as high as $342.50 intraday before finishing at $327.98.
Cypress Semicondutor Corporation (CY)
CY stock jolted higher by over 14% today after agreeing to acquire Spansion, Inc. (CODE) after Monday’s closing bell. The deal is an all-stock, tax-free purchase for approximately $4 billion. Wall Street analysts regard this deal as quite favorable for both companies, and as a result, both CY and CODE were substantially higher today.
CY stock has clawed its way back from $8 a share as recently as mid October, and traded 41.2 million shares today, finishing at $11.91.
MOL Global Inc (MOLG)
MOLG was the biggest winner on Wall Street today, rebounding an astounding 114% higher. MOLG stock fell nearly 54% the Friday before Thanksgiving on a dismal 62% decline in earnings, as well as several class-action lawsuits being filed against the company. Trading on the stock was halted all of last week. MOLG stock took off after billionaire Vincent Tan, the largest shareholder of MOLG stock, publicly announced his full support for the company.
MOL Global also announced a $15 million share repurchase program, $500,000 of which will be shares purchased by the company’s CEO. But even with today’s huge gain, MOLG stock is still less than half the price it sold for prior to the earnings report.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
