U.S. markets dropped sharply this morning, recovered some midday and then pushed lower again on the heels of a weekend in which nearly two-thirds of Greek voters rejected strict conditions set by European creditors as a prerequisite for additional monetary aid.
Greeks did not want any part of a national austerity program, but the downside now is a possible exit from the eurozone.
The controversy helped push U.S. crude oil down 7% today to $52.53 today in its worst performance since last April. Conversely, even with a stronger U.S. dollar, the gold market rose and carried silver higher with it.
The Dow Jones Industrial Average and the Nasdaq Composite were off 0.3%, while the S&P 500 was off 0.4%. All sectors were in the red today, and the energy and basic materials sectors were off nearly 2%.
In addition to the rise in gold prices, lower oil prices help airlines, and that is why Barrick Gold Corporation (USA) (NYSE:ABX), United Continental Holdings Inc (NYSE:UAL) and Versartis Inc (NASDAQ:VSAR) are three of today’s best stocks.
Barrick Gold Corporation (USA) (ABX)
ABX stock as well as several other gold stocks, such as Goldcorp Inc (USA) (NYSE:GG) and Agnico Eagle Mines Ltd (USA) (NYSE:AEM) rose sharply as a group today following the Greek referendum, the result of which increases the chances that Greece may exit the eurozone.
ABX recently announced its next earnings report will be on Aug. 5, after the market closes. ABX stock has been crushed since the beginning of May, falling more than 22% prior to today’s action.
ABX stock was up over 4% in the morning before easing back to record a 2.6% gain for the day.
United Continental Holdings Inc (UAL)
UAL stock lifted 4.6% higher after receiving an upgrade from CRT Capital from “fair value” to “buy.” UAL recently reported a decline of 4.5% in passenger revenue per available seat mile (PRASM), but that was an improvement of 1% from the previous month. UAL’s on time arrival percentage has also been lagging other airlines recently.
UAL will report its June traffic numbers this week on Thursday.
Versartis Inc (VSAR)
VSAR stock surged 29% higher today after the U.S. Food and Drug Administraion removed a partial clinical hold on VSAR’s application for its new treatment, VRS-317.
VRS-317 is a treatment for children who have growth hormone deficiency (GHD). With the release of the partial hold, VSAR can now continue with its Phase 3 registration trial. VSAR is hoping for FDA approval by 2018.
Today’s action on VSAR stock overcame a one-month decline in the price.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
