U.S. markets extended their recent Santa Claus rally today, as oil prices rose significantly for the first time in quite awhile, and a few economic reports were seen as encouraging.
Crude oil rose nearly 4% after the Energy Information Administration reported an unexpected decline in U.S. crude inventories of 5.9 million barrels. The street was looking for a rise of 1.1 million barrels.
November’s new home sales were up 4.3% to an annual rate of 490,000 units. October’s number was revised down to 470,000.
In addition, the Commerce Department reported a hike of 0.3% in consumer spending in November after October’s number was unchanged.
The Dow Jones Industrial Average moved up 1.1%, the S&P 500 gained 1.2% and the Nasdaq rose 0.9%. Sectors were as green as a Christmas tree today, with energy and basic materials stocks showing excellent strength.
Leading the parade on Wall Street today were Celgene Corporation (NASDAQ:CELG), Adamas Pharmaceuticals Inc (NASDAQ:ADMS) and Freeport-McMoRan Inc (NYSE:FCX), and here’s why they are three of Wednesday’s best stocks.
Celgene Corporation (CELG)
CELG stock was a huge winner today after announcing it settled a patent dispute on Tuesday having to do with multiple myeloma drug, Revlimid. That one drug comprised over 60% of Celgene’s total sales in the last quarter.
Under the terms of the settlement, a generic version of the drug can be sold in the U.S. as of March, 2022. The two companies who can sell the drug will be India based Natco Pharma Ltd and Arrow International Limited, which is a subsidiary of Allergan plc Ordinary Shares (NYSE:AGN).
Also boosting CELG stock today were two analyst reiterations. Cantor Fitzgerald & Co Inc kept its “buy” rating, and William Blair & Company LLC continued with its rating of “outperform”.
CELG stock climbed more than 9% today, pushing over the 200-day moving average for the first time in six weeks.
Adamas Pharmaceuticals Inc (ADMS)
ADMS stock was the biggest winner on Wall Street today, surging 83% higher following the announcement that one of its experimental drugs had met its goals in a latter stage clinical trial.
The drug, ADS-5102, is used to reduce a severe neurological side effect of L-Dopa treatment of Parkinson’s Disease called “levodopa-induced dyskinesia,” which affects a high percentage of patients with that disease. If eventually approved by the Food and Drug Administration, it would be the first treatment for LID in the U.S.
Analysts have estimated a possible $200 to $500 million annual sales range for the drug if approval should be granted down the road.
Freeport-McMoRan Inc (FCX)
It wasn’t just the rise in oil prices that sent FCX stock blistering higher today. FCX also rose 16% after the Chinese Government announced it will become more flexible on its monetary policies and push for “supply-side reform.” Such reforms help an economy to produce more, and that should help commodity and mining stocks
FCX stock has been decimated since July 2014, falling from $35 to $7 a share. The company also recently suspended its dividend, and announced it will cut capital spending through 2017 by $1 billion.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
