U.S. markets put in a huge upside reversal in mid-afternoon today, following the Fed’s dovish announcement from their FOMC meeting.
Markets rallied across the board as the Fed dropped the word, “patient” regarding waiting to raise interest rates, but instead lowered its December Fed funds rate outlook from 1.125% to 0.625%.
Chairperson Janet Yellen indicated in a press conference that she won’t rule out a rate hike after April, but that any interest rate hike will be “data dependent,” and that the first hike may not take place until September.
The Fed’s news also lifted oil and commodity prices. The Dow Jones Industrial Average rose 1.27%, the S&P 500 was up 1.22%, and the Nasdaq was 0.92% higher. As might be expected, sectors were all in the green, with energy and utilities quite strong for the second straight day.
As for individual issues, Rite Aid Corporation (RAD), Sony Corp (ADR) (SNE) and Retrophin Inc (RTRX) all had some important news to share, and are thus 3 of today’s best stocks.
Rite Aid Corporation (RAD)
RAD stock rose almost 2% on 90 million shares, after announcing a collaboration with American Express on the Plenti program, a loyalty coalition in which a purchase made at one store then provides a consumer with points that can be used for discounts at other businesses or services.
RAD’s Wellness Plus program will be rolled into the Plenti program, and new loyalty cards will go out to all 25 million current members.
Also pushing the volume and price of RAD stock today was further speculation that RAD could become an acquisition target for Walgreens Boots Alliance Inc (NYSE:WAG), especially with RAD now becoming one of the members of the attractive Plenti program.
RAD stock was up over 5% earlier on the day before selling off late.
Sony Corp (ADR) (SNE)
SNE stock moved 5% higher today after announcing its PlayStation Vue streaming video service, which will begin in New York City, Philadelphia, and Chicago for now, and then nationwide by the end of 2015.
PlayStation Vue is expected to compete with traditional cable television providers like Comcast Corporation (NASDAQ:CMCSA), and anyone with a PlayStation 3 or 4 console can get channel bundles between $50 and $70 per month for 85 broadcast and cable channels. It will eventually become available for iPads as well.
There will be no long-term contracts, and subscribers can get additional bundles for sports and other programming for a small extra charge per month.
Retrophin Inc (RTRX)
Not a day goes by anymore without at least one major biotech advance being announced, and today was no different. RTRX soared 36% amid news that the Federal Drug Administration has approved Cholbam capsules, manufactured by Asklepion Pharmaceuticals, LLC, for patients with bile acid synthesis disorders and patients with peroxisomal disorders.
RTRX will now exercise its rights to purchase from Asklepion all worldwide rights, titles, and ownership to the drug, and will have seven years of marketing exclusivity. RTRX will pay Asklepion a one-time payment of $27 million in cash for the rights to Cholbam.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
