The S&P 500 got hammered yesterday, but a handful of stocks shot higher on good news. Here are their stories.
HP (HPQ) and Xerox (XRX) had the biggest gains in the index as their takeover battles continue. It all started in November when XRX offered to buy HPQ for a 20 percent premium.
The computer maker leaped on the news and began a steady climb. XRX raised its bid on February 10. It then reported strong earnings on Monday night and CEO Enrique Lores suggested he might turn the tables by making a bid for the photocopier firm.
Either way, the developments make some kind of merger seem more likely. Regardless of who buys whom, such a deal would result in billions of cost savings and less competition in the printer market. It would also free up billions for share buybacks.
The result? HPQ rose 6 percent and XRX gained 5 percent. Not bad on a day when the S&P 500 dropped 3 percent to its lowest level since December 5. In fact, it’s worse than that because if you include Monday’s selloff, the market is now in the midst of its worst two-day slide since August 2015.
Regeneron Pharmaceuticals (REGN) had the third-biggest gain in the S&P 500. The drug maker rallied 4 percent after rival Novartis (NVS) launched a safety review of its blindness treatment Beovu. Wall Street viewed that as good news for REGN’s macular degeneration drug, Eylea.
Keysight Technologies (KEYS) followed with a 3 percent gain after earnings and revenue beat estimates. This company is a provider of technology for 5G networking, which is expected to receive over $1 trillion of investment in the next five years.
Perrigo (PRGO) was the fifth member of the S&P 500 to gain at least 1 percent yesterday. It jumped 3 percent after the Food and Drug Administration approved one of its respiratory drugs.
In conclusion, coronavirus worries have dragged the market lower. But a few companies swam against the bearish tide. Investors may want to keep an eye on these names when things begin to calm down.