Wall Street markets opened modestly higher this morning, buoyed by yesterday’s strong day and the S&P 500 touching a new record. Some comments by Mario Draghi, president of the European Central Bank (ECB), and some lukewarm economic data set the tone.
Draghi said that the ECB would “implement in full” its ongoing bond purchasing program for “as long as needed.” That made traders momentarily happy. But the happiness didn’t last long, and stocks struggled just to break even for the rest of the day.
In economic news, U.S. industrial production fell 0.3% in April, the fifth straight month of decline, while economists were looking for an increase of 0.1%. The March number was revised from -0.6% to -0.3%.
The Dow Jones Industrial Average and the S&P 500 were both up 0.1%, and the Nasdaq Composite was down a fraction. Sectors were mixed, with utilities and telecommunications services showing the most strength.
Some major announcements helped stocks such as Netflix, Inc. (NASDAQ:NFLX), Hertz Global Holdings Inc (NYSE:HTZ) and Sorrento Therapeutics Inc (NASDAQ:SRNE) fly high today. Those three are the best of all stocks today.
Netflix, Inc. (NFLX)
NFLX stock was a winner today, sliding up 4.5% after announcing it is in talks to enter China’s nearly $6 billion online video market.
Specifically, private talks are ongoing with Wasu Media Holding Co, a media company with financial backing from Jack Ma, the billionaire founder of Alababa Group Holding Ltd (NYSE:BABA). Netflix has plans “to be nearly global by the end of 2016,” said NFLX spokesperson Anne Marie Squeo.
NFLX stock broke through $600 today, finishing at $613.25 at the closing bell.
Hertz Global Holdings Inc (HTZ)
Hertz stock, along with rival Avis Budget Group Inc. (NASDAQ:CAR), had very strong showings today, after Hertz said it is raising prices as much as $5 a day in June due to expected high demand for car rentals.
Hertz also announced some cost-cutting measures. HTZ said it will buy fewer new cars and sell more of its cars and SUVs that it currently owns. In addition, HTZ will close 200 stores to save $10 million a year.
HTZ stock was up 5%, while Avis stock was up 10%.
Sorrento Therapeutics Inc (SRNE)
SRNE stock jumped 13% higher after saying that NantPharma will acquire SRNE’s experimental cancer treatement, Cynviloq. The deal could be worth $1.3 billion.
NantPharma will purchase Igdrasol Inc., which is a Sorrento subsidiary, and is the branch of Sorrento that has been developing Cynviloq. Sorrento will get $90 million cash up front for Igdrasol. The remainder could come from regulatory and sales milestone payments.
Cnyviloq was Sorrento’s first cancer product, and is slated to reach the market by the end of 2016. Six months ago, SRNE stock was less than $4. It closed today at $13.01.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
