U.S. equities weren’t hindered by the first 2016 presidential debate on Monday evening, and instead rose Tuesday on the back of some strong consumer confidence data. Oil prices declined, knocking energy stocks to the ground, while tech and industrials thrived.
The final tallies for the indices: The S&P 500 rose 0.64% while the Dow Jones Industrial Average gained 0.73%. The Nasdaq Composite added 0.92%.
Among the stocks notching impressive gains Tuesday were GrubHub Inc (NYSE:GRUB), Kite Pharma Inc (NASDAQ:KITE) and Netflix, Inc. (NASDAQ:NFLX).
Netflix, Inc. (NFLX)
NFLX shares rose 2.6% on slightly above average volume after the company revealed plans to grow its presence in the reality TV arena.
At an industry conference in London on Tuesday, Netflix Chief Content Officer Ted Sarandos said NFLX is looking to double its lineup of original content, including substantial additions to unscripted platforms such as reality and competition shows.
Netflix has found increasing success in original content, including hit shows such as House of Cards and Orange Is the New Black. This year, Netflix won 54 Emmys for its content.
The executive said Netflix is targeting a budget for original content of $6 billion next year, according to The Hollywood Reporter.
NFLX now is off 15% for the year-to-date.
GrubHub Inc (GRUB)
GRUB shares climbed 3.7% following some positive analyst commentary on the stock.
Canaccord Genuity analyst Michael Graham raised his price target on the food delivery service to $48 from $42 while reiterating a “buy” rating on the shares. The analyst said Grubhub has the makings of a long-term winner in the consumer internet space while noting GRUB is the leader in the fragmented online takeout food market. Grubhub currently can order directly from more than 45,000 takeout restaurants in more than 1,100 U.S. cities and London.
The news merely furthered what has been a red-hot run in GrubHub this year. GRUB shares are now up more than 80% year-to-date, earning back almost everything they lost in their sweeping 2015/early 2016 decline.
Kite Pharma Inc (KITE)
KITE shares jumped 9.2% on more than six times the average daily volume after the company reported positive trial results for its treatment of non-Hodgkin lymphoma.
Nearly half the patients in the phase II trial showed full remission, though there were some patients that showed severe side effects and two deaths.
In a note out Tuesday, RBC Capital Markets reiterated a “buy” rating on Kite Pharma, though the firm maintains the view that KITE is a potentially risky stock. The market for treatments of non-Hodgkin lymphoma is potentially lucrative, but Kite faces competition from both comparably-sized and large pharmaceuticals companies.
With the move, KITE is close to being breakeven for the year.
As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities.
