Wednesday was a strong was a strong hump day for U.S. equities, lead by financial stocks, which roared ahead by 2.8% after President Donald Trump’s address to Congress. The S&P 500 Index and the Nasdaq Composite gained 1.4% apiece, while the Dow Jones Industrial Average surged 1.5%.
The biggest news on Thursday is, of course, the Snapchat IPO, but earnings are still coming fast and furiously, including Box Inc (NYSE:BOX) and Shake Shack Inc (NYSE:SHAK). Meanwhile, Kite Pharma Inc (NASDAQ:KITE) is starting to shed some of its recent red-hot gains.
Here’s what you should know heading into Thursday’s trade:
Kite Pharma Inc (KITE)
KITE shares have exploded by 40% in the past two days on monster trading volume following positive clinical trial results for its blood cancer immunotherapy treatment, KTE-C19, as well as its fourth-quarter earnings report.
KTE-C19 is a new class of drug referred to as a chimeric antigen receptor T-cell (CAR-T) therapy. In short, these drugs attempt to make T-cells kill blood cancers.
In its most recent study, KTE-C19 reached its primary endpoint of hitting an objective response rate of 82%. And 31% of patients had a complete response rate six months into treatment, meaning cancer signs had disappeared.
And in its Q4 report, KITE topped expectations by posting a loss of $1.31 per share — 44 cents better than estimates.
KITE stock is down 5% on Thursday on news that the company will execute a secondary offering, diluting its current shareholders. Kite Pharma will offer 4.75 million shares, with a 30-day option for the underwriter, Jefferies LLC, to buy as many as 712,500 additional shares.
Box Inc (BOX)
BOX shares are down on Thursday after it posted its most recent quarterly earnings the previous night.
The cloud company posted a loss of $36.9 million, or 28 cents per share, for its fiscal fourth quarter. Wall Street was looking for 13 cents of red ink. Meanwhile, Box revenues came in at $109.9 million, with billings at $159.3 million. Both measures topped FactSet-polled analysts’ estimates for sales of $108.8 million and billings of $153.2 million.
Where Box fell short was fiscal first-quarter estimates. BOX expects to bring in between $114 million and $115 million in revenue, trickling down to a loss of 14 to 15 cents per share. Analysts were looking for a 12-cent loss on $115.1 million of sales.