While stocks may have ended last week’s holiday-shortened trading on a low note, the three-day weekend gave traders a chance to forget about their concerns and get back on their bullish horse. The S&P 500 ended Monday at 2,349.01, up 0.86%.
It wasn’t a glorious resumption of trading activity for all names though. Snyder’s-Lance Inc (NASDAQ:LNCE), Dish Network Corp (NASDAQ:DISH) and Incyte Corporation (NASDAQ:INCY) couldn’t win for losing today.
Here’s a look at what upended each stock.
Incyte Corporation (INCY)
It may not have been a fatal smack-down on soul-crushing news for Incyte Corporation shareholders on Monday, but the 10.5% setback INCY suffered clearly says traders are worried about what the announcement could mean.
On Monday, Incyte announced that an arthritis drug it and Eli Lilly and Co (NYSE:LLY) were co-developing was not approved by the Food and Drug Administration. While the government’s pharmaceutical regulator didn’t outright reject baricitinib, it is delaying its potential approval until more clinical trials can pinpoint the correct dosage needed to make the drug effective but also safe to use.
BMO Capital Markets believes the FDA’s response will add an additional three years worth of development time for baricitinib, which some say could have driven as much as $1 billion worth of revenue by 2020.
In addition to the sizeable setback suffered by INCY, LLY shares fell 4.1% on the news.
Dish Network Corp (DISH)
If Dish Network was a potential acquisition target before today, it’s less of one now. That’s the consensus market opinion surrounding the stock today, if the 5.7% plunge DISH made today is any indication.
The stock took that hit in the wake of reports from JPMorgan that it purchased roughly 18 megahertz worth of spectrum at the Federal Communications Commission’s most recent auction of licensed radio frequencies. All told, the company spent $6.2 billion on spectrum, far exceeding investor expectations.
DISH had been pegged as a buyout target in the midst of a wave of mergers and acquisition between telecom and media companies. Verizon Communications Inc. (NYSE:VZ) had even been explicitly named as a possible suitor. That seems less likely to JPMorgan analyst Philip Cusick now, though, with the cost/liability of a deal going up by that amount.
Snyder’s-Lance Inc (LNCE)
Finally, snack food company Snyder’s-Lance — the name behind Tom’s snacks, Kettle Chips, Pop-Secret and more — warned LNCE shareholders today that 2017’s per-share profit would only roll in somewhere between $1.05 and $1.20 per share. Previous guidance had suggested income for this year would be between $1.32 and $1.42 per share of LNCE.
Fanning the bearish flames that cooked Snyder’s-Lance was the sudden and unexpected exit of CEO of Carl Lee Jr., who is now officially retired. His step-down appears amicable, though the fact that Brian Driscoll has only been named as interim CEO suggests the move isn’t one that has been planned for a while.
With shareholders understandably presuming the disruption could be an indication of trouble ahead, LNCE ended the day down 15.4%.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.