Monday’s trading saw another round of heavy post-Brexit selling, with many still panicked about what the United Kingdom’s departure from the European Union could mean not just for the island nation, but for other countries interested in breaking off, not to mention the global economy. The S&P 500 shed 1.8%, and the Dow Jones Industrial Average finished 1.5% off.
Today, however, looks like it could be a rebound day, as evidenced by a few snap-backs in the market, including stocks like Twitter Inc (NYSE:TWTR). LendingClub Corp (NYSE:LC) and Dow Chemical Co (NYSE:DOW) also are heading higher, both on news that they’re trimming some fat.
LendingClub Corp (LC)
LC shares are up significantly on Tuesday amid news that the company is laying off about 12% of its workers. The move comes amid softening loan volumes – itself a byproduct of the departure of CEO Renaud Laplanche, which came amid a review that showed the company was failing to conform to its own rules.
According to The Wall Street Journal, the company announced the nature of a troubling personal investment by Laplanche — namely, that “in December 2009, 32 loans totaling $722,800 were made to Mr. Laplanche and three of his family members in order to inflate reported loan volumes at the time. The vast majority were paid off within months.”
All told, the workforce cut will amount to 179 positions.
The company also announced that acting CEO Scott Sanborn will remain on a permanent basis.
LC shares were up more than 4% in Tuesday’s trading.
Dow Chemical Co (DOW)
DOW shares are up marginally on its own layoff announcement — specifically, the chemicals company will hack roughly 4% of its global workforce.
The move is part of a restructuring that will see Dow Chemical take full control of the Dow Corning joint venture with Corning Incorporated (NYSE:GLW) — a move the company believed would help save $300 million when the deal was first announced back in December. Now, DOW sees the move saving $400 million.
According to Reuters, Dow also is shutting down facilities in North Carolina and Japan.
DOW shares were up a little more than 1%.
Twitter Inc (TWTR)
TWTR is just one of a number of stocks that are up in Tuesday’s premarket action on no news whatsoever.
Still, there’s at least a little something of a technical basis for Twitter’s quick turnaround.
TWTR shares are busy making a bounce off the 50-day moving average around the $15.25 area. Twitter actually popped above this moving average a couple of weeks ago, but have come back to earth since hitting $17, with its Relative Strength Index reading dropping back to a more neutral figure.
Twitter stock was up more than 2% as the market approached Tuesday’s opening bell.
Kyle Woodley is the Managing Editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. Follow him on Twitter at @KyleWoodley.
