Undeterred yet uncompelled by the drama of former FBI Director James Comey’s testimony to the U.S. Senate on Thursday, traders were content to mostly hang out on the sidelines. The S&P 500’s finish of 2,433.79 was only 0.03% better than Wednesday’s last trade, with most investors unsure what, if anything, is different now.
The Comey-stupor didn’t keep all trading action in check though. NewLink Genetics Corp (NASDAQ:NLNK), Urban Outfitters, Inc. (NASDAQ:URBN) and Dell Technologies Inc (NYSE:DVMT) were all deep in the red today, but for all the right reasons.
Here’s what investors need to know.
Dell Technologies Inc (DVMT)
By all accounts, Dell Technologies had a great first fiscal quarter. Revenue was up 46% (albeit due to the acquisition of EMC late last year), and the bottom line grew considerably.
For the quarter ending in April, Dell Technologies earned an operating profit of $1.12 per share on revenue of $17.82 billion. Both were well up from year-ago figures. Its PC and server business was firm, but higher component costs proved to be a drag. DVMT shareholders weren’t impressed or sympathetic though, sending the stock to a loss of 4% on Thursday.
Dell Technologies is the evolution of the computer company started by Michael Dell in his college dorm room in 1984. The company went private just a few years ago, with the buyer and the buyee agreeing they’d be better served without the involvement of short-term-minded investors. Via the union with EMC last year though, Dell is publicly-traded name again in the DVMT wrapper.
Urban Outfitters, Inc. (URBN)
Reminding traders that retailing is still a wickedly tough business to be in right now (not that investors weren’t keenly aware of it), Urban Outfitters officially warned URBN shareholders on Thursday that the quarter currently underway wasn’t going to be a pretty one, sending the stock lower to the tune of 10.3%.
The caution came in the form of an SEC filing, which explained, “Thus far during the second quarter of fiscal 2018, comparable retail segment net sales are high single-digit negative.” Analysts were collectively expecting a 3.2% same-store sales improvement.
Urban Outfitters was somewhat aggressive with store openings last year, adding 39 units. While aggregate revenue growth will be measurable, the same-store sales measure is an apples-to-apples picture of the company’s success. The negative comparison leaves some investors wondering if the expansion could end up being a costly waste of money.
NewLink Genetics Corp (NLNK)
Last but not least, biopharma name NewLink Genetics was upended today after Genentech, owned by Roche Holding Ltd. (ADR) (OTCMKTS:RHHBY), informed NewLink it was returning the marketing rights for the IDO inhibitor GDC-0919.
GDC-0919, or navoximod, is a cancer-immunology developed by Newlink, which in turn partnered with bigger and deeper-pocketed Genenetech to see its development all the way through to any approval. Roche and Newlink would share in any profits the drug might create. With Genentech opting to call it quits on the drug’s R&D though, its future isn’t encouraging.
Newlink CEO Charles Link commented:
“We are obviously disappointed in this decision. We remain committed to advancing our IDO pathway inhibitor indoximod, which continues to generate exciting data in combination with anti-PD-1 agents, cancer vaccines, and chemotherapy in multiple cancer types including melanoma, prostate cancer, acute myeloid leukemia, and pancreatic cancer.”
Investors aren’t nearly as optimistic though. NLNK finished the session at $6.24, down 41.2%.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.