U.S. markets took another dive Tuesday on weak overnight economic data from China. The market’s subsequent bloodletting turned the sea red, with the Dow Jones Industrial Average losing some 540 points in the afternoon after Boston Federal Reserve President, Eric Rosengren, made comments indicating the Fed will raise rates in September.
The trouble began after Chinese officials reported that their Manufacturing Purchasing Manager’s Index fell from 47.8 in July to 47.3, marking a six year low.
The Chinese services sector, a previous market stalwart, appears to be slowing as well.
The U.S. August Institute of Supply Management manufacturing index was also problematic, slipping from 52.7 to 51.1, the weakest reading since 2013.
It was a gloomy day for most sectors, except for energy, which was up about 1%. As a result, the Dow Jones toppled another 2.8%, while both the S&P 500 Index and Nasdaq Composite gave up 2.9%.
Despite the gloom, the sun was out for at least a few stocks: SunEdison Inc (NYSE:SUNE), Trevena Inc (NASDAQ:TRVN) and Viavi Solutions Inc (NASDAQ:VIAV) rounded out Tuesday’s three best stocks. Here’s why:
SunEdison Inc (SUNE)
SUNE stock was rebounding over 3% today after it was reported that Point72 Asset Management, which has the backing of Billionaire Steven Cohen, has now bought a 5.1% stake in the solar energy company.
Point72 bought nearly 16 million shares of SUNE stock on Monday evening, for a total value of approximately $165.9 million. Several other insiders, such as CEO Ahmad Chatila and CFO Brian Wuebbels, have also made purchases of nearly 60,000 shares recently.
SUNE stock has fallen from $32 as recently as July, to a low this past week of near $9 a share. SUNE stock closed at $10.76 today.
Trevena Inc. (TRVN)
TRVN stock soared 51% after announcing positive data from a Phase 2 trial of its TRV130 drug. TRV130 treats severe acute post-operative pain after abdominoplasty surgery.
The biopharmaceutical company reported significant pain reduction in patients receiving the treatment when compared with a placebo group, and added that TRV130 compared favorably to morphine in reduced symptoms such as vomiting, nausea and hypoventilation.
TRVN stock was up as much as 70% this morning, before pulling back a bit in the afternoon.
Viavi Solutions Inc (VIAV)
Shares of VIAV were climbing over 5% higher today after Sandell Asset Management sent a letter to the board of directors, outlining ways for the company to “enhance value and reverse the poor governance and performance that has plagued its shareholders.”
Two of Sandell’s suggestions included improving and enhancing the quality of the board and reviewing strategic alternatives to improve performance.
The letter was a breath of fresh air to VIAV shareholders, who have seen Viavi’s stock languish for over two years, falling from $9 to a recent low around $5.25.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
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