With modest inflation and palatable industrial activity for June setting the stage for more of the same going forward, investors saw fit to hammer out another, albeit tempered, gain. The S&P 500 ended Friday’s trading up 0.47% at 2,459.27, which was more than enough to push the market to record highs.
Not every name was a winner on Friday though. In fact, Cyberark Software Ltd (NASDAQ:CYBR), Wynn Resorts, Limited (NASDAQ:WYNN) and Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) were all noteworthy losers.
Here’s the deal.
Teva Pharmaceutical Industries Ltd (TEVA)
What was good news for AstraZeneca plc (ADR) (NYSE:AZN) shareholders today ended up being bad news for Teva Pharmaceutical Industries. As it turns out, AstraZeneca’s CEO Pascal Soriot will be staying put rather than defecting to Teva. Soriot had even gone as far as to meet wth Teva’s search committee, with some suggesting he even took the job offer … an offer that reportedly doubles what Teva’s former chief, Erez Vigodman, would have been earning.
But, in that Teva’s top job has been something of a revolving door of late, Soriot may be better served by not stepping into a losing proposition.
Fanning the bearish flames than sent TEVA shares lower to the tune of 3.9% on Friday was a suggestion from Oppenheimer analyst Derek Archila that Teva Pharmaceutical Industries may not have done as well as expected last quarter.
Cyberark Software Ltd (CYBR)
Relatively unknown IT security outfit Cyberark Software saw its stock plunge 16.3% today following news that a recent wave of ransomwware attacks didn’t help the organization drum up a meaningful amount of new business.
Computer hacking and cybercrime is always a concern, but the concern ebbs and flows. A recent rise in cyberattacks with bugs like Petya and WannaCry as the centerpiece would normally have sent consumers and businesses alike searching for defensive solutions. Such scares have becomes so common now, though, that they don’t prompt people into action.
That was the message Cyberark Software sent CYBR shareholders today anyway, in the form of a warning that its second-quarter results would be weaker than initially suggested. Instead of a top line between $61 million and $62 million, the organization now only expects to report between $57 million and $57.5 million. That should translate into operating income of between $8.5 million and $8.9 million, versus prior guidance of between $10.9 million and $11.7 million.
Although CYBR was the hardest hit on Friday, it was hardly alone in its misery.
Wynn Resorts, Limited (WYNN)
Last but not least, Wynn Resorts today lead a bearish charge from all the major casino names with exposure to Macau in the wake of reports that Chinese regulators were cracking down in a way that could crimp their business.
It’s actually not a new story. The nation’s government got serious about preventing money laundering and illegal junkets in 2014, and although things are now getting better on a year-over-year basis, the move stymied a key source of the enclave’s gaming revenue. Worries were revived again today, however, when one of the nation’s top prosecutors himself was found guilty of awarding contracts that benefited him and/or his family. The corrupt moves were enough to land him a 21-year jail sentence.
While the outcome of the trial doesn’t inherently mean Macau’s gambling arena can’t grow, it does likely cast a dark cloud on the market’s future. That was enough to send the stock 3.4% lower for the session.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.