The bulls tried to chip away at Tuesday’s loss, with the S&P 500 up for the better part of the day. Once Congress opted to postpone a vote on the pivotal repealing and replacing of Obamacare though, investors protested. By the time the closing bell rang, the S&P 500 had lost 0.11% to end the session at 2,345.96.
Here’s a closer look at why each name got dunked today.
Credit Suisse Group AG (ADR) (CS)
It’s only a rumor so far, but if the rumors regarding Credit Suisse Group are true, CS shareholders were understandably frustrated enough to push CS to the 2.6% loss shares booked on Thursday.
In short, much like its neighbor Deutsche Bank AG (USA) (NYSE:DB), Credit Suisse Group is in need of cash, and it is exploring various ways to garner it. The initial consensus was that it would issue a separate exchange listing for its Swiss banking arm — an IPO — though the company is reportedly shifting its preference to the issuance of more CS shares.
The secondary offering, if issued, is expected to raise about $3 billion, adding 10% more shares of CS than are currently in the float.
The company is expected to make a final decision in April.
Zillow Group, Inc. (Z)
As was the case with Credit Suisse, online real estate listing site Zillow Group is only the subject of speculation today. But, those speculations were enough to spook Z — and ZG — shareholders.
The concern is the possibility that Zillow Group has violated Real Estate Settlement Procedures Act laws. Specifically, Deutsche Bank is concerned that the website failed to comply with so-called “anti-kickback” rules by entering co-advertising agreements and funneling home-shopper leads to mortgage companies.
The result: If the CFPB investigates and finds anything inappropriate, it could crimp a key piece of the company’s fiscal firepower. Fears of such findings were enough to send Z shares lower to the tune of 5%.
Ultragenyx Pharmaceutical Inc (RARE)
Finally, shares of biopharma outfit Ultragenyx Pharmaceutical tumbled 8.1% today following news that one of its Phase 2 trials had failed to meet a hoped-for endpoint.
Nevertheless, Ultragenyx intends to take the drug into Phase 3 trials based on the encouraging improvement of the “absence seizures” observed during the trial. UX-007 could still prove beneficial for patients suffering related movement disorders.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.