Stocks snapped a five-day skid Thursday despite data revealing a slight increase in jobless claims. The S&P 500 added nearly a third of a percent while the Dow Jones Industrial Average rose more than half a percent. The Nasdaq Composite gained 0.21%.
Weekly jobless claims rose by 13,000 to 277,000 last week, topping economists’ forecast of 270,000 claims. The four-week moving average, which reduces volatility in claims, fell slightly to 269,250 from 269,500.
According to Bloomberg, the numbers are still within the range of a healthy labor market.
With stocks breaking out of their funk, for one day at least, Merck & Co., Inc. (NYSE:MRK), Shake Shack Inc (NYSE:SHAK) and World Wrestling Entertainment, Inc. (NYSE:WWE) were three of Thursday’s best performers.
Merck & Co., Inc. (MRK)
Pharmaceuticals giant Merck, a member of the Dow Jones Industrial Average, was one of the best performers today in the blue-chip index. MRK rose 2.5% on volume that was more than double the daily average after delivering positive trial results for its Keytruda immuno-oncology medicine.
MRK’s Keytruda immuno-oncology medicine is used to treat patients with lung cancer. The most recent trial focused on patients that previously had not undergone chemotherapy. Data reveal the MRK treatment helped patients live longer without the disease worsening, presenting an advantage of over traditional chemotherapy treatments.
The drug had already been approved for use by lung cancer patients who had undergone chemotherapy.
MRK is hoping the treatment, which has a list price of $150,000, will be approved for treating patients with the most common form of lung cancer, reports Reuters.
Shake Shack Inc (SHAK)
Shares of burger chain operator Shake Shake gained 5.3% after Buckingham Research initiated coverage of SHAK with a “buy” rating.
John Zolidis, an analyst at The Buckingham Research Group believes SHAK shares could rise 29% from current levels, reports Business Insider. That would put SHAK prices about at IPO levels.
Zolidis wrote:
“It has barely 50 U.S. locations. Yet, the company’s restaurants have become tourist destinations and inspire many to wait in extended lines. … It is extremely difficult to create a brand halo such as this and bodes very well for the company’s longterm ability to take market share.”
Shares of SHAK are down 7.3% this year.
World Wrestling Entertainment, Inc. (WWE)
World Wrestling Entertainment, Inc. jumped 4.2% after the company revealed a multiyear content distribution agreement with PPTV that will help WWE bolster its footprint in China.
As part of the agreement, PPTV will deliver the popular WWE shows “Raw” and “SmackDown” in Mandarin.
WWE will also put on its first live event in China in three years this September.
“WWE’s China debut rocked Shanghai Expo in 2010, and now we are excited that deafening cheers from WWE fans will be heard again in 2016 at the Mercedes-Benz Arena,” said Ding Hao, CEO of Expo Group.
The WWE also announced that it is adding its first-ever Chinese wrestler, Bin Wang, to a developmental contract, according to a statement issued by WWE.
At the time of this writing, Todd Shriber did not own any of the aforementioned securities.
