After bullrushing its way to much higher highs and then slumping back into the red, traders were content to end the day somewhere in between. The S&P 500 ended the volatile session at 2167.48, up a mere 0.2%.
Thursday wasn’t nearly as kind to owners of Sturm Ruger & Company Inc (NYSE:RGR), Barrick Gold Corporation (USA) (NYSE:ABX) and NetEase Inc (ADR) (NASDAQ:NTES) though. These three names ended the day rather deep in the red, though for understandable reasons.
Here’s the scoop.
NetEase Inc (ADR) (NTES)
China’s online-gaming name NetEase didn’t do as well as hoped in its third quarter of 2016, and NTES owners paid the price for the shortfall.
Earnings were good enough. The company posted a profit of $3.42 per share on a top line of $1.38 billion. The bottom line was up 47% on a year-over-year basis, and handily topped expectations of $2.89 per share of NTES. Sales were also up 38%, but missed estimates of $1.43 billion, sending NTES shares 9.2% lower.
Online gaming revenue accounted for 71% of NetEase’s business last quarter, and grew 26% on a year-over-year basis. Its e-commerce unit, which drove 23% of Q3’s revenue, grew 107%.
Barrick Gold Corporation (USA) (ABX)
After soaring briefly on Wednesday following Donald Trump’s successful bid for the U.S. Presidency, gold shares peeled back to a breakeven that day. Those sellers followed through on Thursday, sending gold prices lower to the tune of 1.4%.
Weakness in the commodity’s price translated into even more weakness for gold mining stocks. Goldcorp Inc. (USA) (NYSE:GG) fell 7.1%, and Agnico Eagle Mines Ltd (USA) (NYSE:AEM) was off by 7.9%. Barrick Gold was hit hardest of all, however, with ABX shares losing 8.6% of their value.
Gold’s pullback was driven by a strong 0.36% rise in the value of the U.S. dollar, which was ultimately spurred by a strong increase in bond yields. Markets are increasingly counting on a December (and/or beyond) rate hike, and Donald Trump’s impending presence in the White House may also be fanning those flames.
Sturm Ruger & Company Inc (RGR)
Last but not least, and for the second day in a row, gunmaker Sturm Ruger & Company saw its shares lose ground, with today’s 12.1% tumble bringing the two-day rout to 25%.
Once again, blame the election of Donald Trump for the weakness.
Broadly speaking, consumers/voters view a mostly Democratic government as gun-restrictive, and the prospect of Hillary Clinton in the White House posing the possibility of even more restrictive gun laws could have meant a rush to purchase firearms before she made it difficult to buy them. Republicans, conversely, are viewed as the more gun-friendly party, and Trump has vocally expressed his stance that he supports gun-ownership rights. With that policy tone now in place for at least four years, gun enthusiasts need not be in any hurry to purchase a firearm.
Rival Smith & Wesson Holding Corp (NASDAQ:SWHC) was also down today, losing 8.9% of its value.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.