It was a good day of quarterly earnings reports, but Brexit blocked investors’ happiness.
Beyond the overall market, in a typical move, investors (read algorithms) rushed to buy shares of a pharmaceutical company they were just finished selling off. In another typical move, investors sold off shares of a payment industry giant after it announced a rather complementary acquisition. It’s so typical of investors to do these things.
Oh, by the way, Tuesday was apparently the CEO-stepping-down day. Did you get the memo? We sure didn’t. This story is in the “Water Cooler” section. For the rest, scroll down to the “Overall Market,” “What’s Up?” and “What’s Down?” sections.
- U.S. markets: All three indices finished Tuesday slightly lower than where they started the day. Scroll to the “Overall Market” section to learn more.
- Cryptocurrency: Bitcoin’s price is hovering in the $8,000 range. Nothing to add at this point.
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What happened on Tuesday?
All three indices wrapped Tuesday lower than where they started the day. It was a good day of quarterly earnings reports. However, you can blame Brexit for the red arrows.
What does this mean?
As always, the stock market is impacted by a web of intertwined economies, countries, trade deals, and political battles. The fate of Brexit is in limbo, as the UK’s parliament both approved and rejected Brexit. We don’t want to get to the politics of this limbo situation. However, its suffice to say, the market doesn’t like uncertainties, and the limbo situation is not helping.
It’s so typical
So, what happened?
Shares of Biogen (Ticker: BIIB) were up more than 26% on Tuesday. Earlier in the year, the stock got hammered because the company decided to shut down two of its most promising drug developments for the treatment of Alzheimer’s. On Tuesday, the company announced that a new analysis of its phase 3 clinical trial has actually proved the drug’s impact on improving the patients’ situation, and the company is now ready to submit an approval application to the FDA.
We don’t know what will happen to the approval, and whether the drug will get approved or not. All we know for sure is that in a typical stock market day, suddenly, everyone is excited about the future of Biogen. What if the FDA approval doesn’t go through?
So Typical, Part II
Shares of Mastercard (Ticker: MA) were down more than 5% on Tuesday. There was no lower-than-expected performance or anything of that sort. The company announced the acquisition of SessionM, a loyalty program solution provider, to help merchants offer a better customer loyalty program and campaign management services to them.
In a typical move by the market, shares of Mastercard dropped right after the acquisition news. While it’s understandable that acquisition costs money, but, not all acquisitions are bad for the acquirees’ bottom line. It’s so typical of the market to just drag the stock’s price on a piece of acquisition news.
It must have hurt
So, what happened?
The beloved, strongly-opinionated, sometimes inappropriate, nevertheless visionary founder and CEO of Under Armour (Ticker: UA and UAA) stepped down, and investors are celebrating. Com’on investors! The man poured his soul and heart into this company. Don’t celebrate. Before he hasn’t even stepped out of the building.
In any case, investors were running out of patience waiting for Under Armour to turn around, solve its inventory issues, and potentially expand from the core athletic market to casual athletic wear.
Was Tuesday the CEO-Stepping-Down day, but we didn’t get the email?