Political difficulties in Greece started a post-Christmas stock market off on the wrong foot this morning. The Greek stock index fell more than 10% after a snap general election was triggered by the failure of their politicians to elect a president.
The market recovered thereafter on the back of firming oil prices from in-fighting in Libya. But even that recovery was short-lived, as concerns of over supply reversed earlier gains in the oil market, sinking stocks along with crude. Stocks struggled to push higher thereafter, basically breaking even on the day.
The Dow Jones Industrial Average slipped 0.09%, while conversely, the S&P 500 rose 0.09%, and the Nasdaq finished outright flat. Utilities and Cyclical Consumer Goods were two of the only sectors to show any real strength today. Among individual issues, Gilead Sciences, Inc. (GILD), Cliffs Natural Resources Inc (CLF), and Manitowoc Company Inc (MTW) all managed to overcome the market’s anxieties.
Gilead Sciences, Inc. (GILD)
GILD stock rose more than 3% higher following the announced expansion of an agreement with Janssen Research & Development, LLC to develop and market a new once-daily prescription for Gildead’s tenofovir alafenamide (TAF) and emtricitabine, along with Janssen’s rilpivirine. All three drugs are used to combat HIV infection.
GILD stock also benefited today from an upgrade by Morgan Stanley (MS) to “overweight” from “equal weight,” while nudging its price target up for the California-based bio- pharmaceutical company from $100 to $104. GILD stock led all Nasdaq issues in volume today, with more than 18 million shares traded.
Cliffs Natural Resources Inc (CLF)
CLF, a company that has seen its share price clobbered in recent years, had a much-needed good day, rising almost 5%, due to a strong gain in the price of China’s iron ore. The reason for the increase was an easing of credit rules by the People’s Bank of China, in an effort to stimulate business investment in that country. Three years ago, CLF stock traded for $45, and began 2014 at just under $25 per share. Having closed today at $6.62, CLF stock has a long road back to respectability.
Manitowoc Company Inc (MTW)
Noted investor, Carl Icahn was at it again, disclosing a 7.7% stake in MTW stock and talking about splitting the company into two parts, in order to increase its value. Icahn noted the shares are undervalued, and is hinting that he may soon try to stage a proxy contest in order to elect more favorable members to the board. These are familiar strategies that Icahn has utilized many times before,and as is typical after these announcements, it sent MTW stock soaring almost 9% on the day, on much higher than usual volume of 11.4 million shares.
As of this writing, Ethan Roberts did not hold any positions in the aforementioned securities.
