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- Wall Street posted a mixed performance on Friday, attempting to stabilize ahead of the three-day holiday weekend. The S&P 500 posted a fractional gain following a slide during the previous session. The Dow finished lower as well, while the Nasdaq recorded a modest gain.
- While the broader averages limped into the holiday, Macau casino stocks staged a rally. Additional details related to casino licenses in the crucial gaming region removed some regulatory concerns about stocks like Melco Resorts & Entertainment (NASDAQ:MLCO), Las Vegas Sands (NYSE:LVS) and Wynn Resorts (NASDAQ:WYNN).
- Looking at individual stock stories, ATI Physical Therapy (NYSE:ATIP) expanded its value by nearly a quarter, bolstered by a bullish analyst comment.
- Meanwhile, a group of packaged food companies continued to shake off inflation concerns to push to new 52-week highs. General Mills (NYSE:GIS), Flowers Foods (NYSE:FLO), Tyson Foods (NYSE:TSN) and J.M. Smucker (NYSE:SJM) all saw new peaks during the session.
- On the other side of the spectrum, a lowered forecast sparked a sell-off in shares of Boston Beer (NYSE:SAM). At the same time, CureVac (NASDAQ:CVAC) dropped to fresh low on news of a revised shareholders' agreement.
Sector In Focus
- Information surrounding a plan to issue six casino licenses in Macau sent shares of companies with ties to the Chinese gambling hub higher on Friday. Investors interpreted gaming law changes for the city to be favorable for the casino operators, prompting the rally.
- The details of the new Macau gaming structure eliminates overhang for the stocks, which had been held down by worries that authorities would take a more aggressive regulatory stance.
- On the news, Melco Resorts & Entertainment (MLCO) posted a gain of nearly 17%. Las Vegas Sands (LVS) climbed 14%, while Wynn Resorts (WYNN) recorded an advance of nearly 9%.
Standout Gainer
- Jefferies turned bullish on ATI Physical Therapy (ATIP), sparking a 23% rise in the company's stock.
- The firm upgraded ATIP to Buy from Hold, pointing to signals that the company should see higher traffic, taking the physical therapy provider back towards pre-pandemic unit volumes.
- ATIP climbed 71 cents on the session to close at $3.75. Even with the advance, shares remain within a trading range that have held them since last July, when a disasterous earnings report prompted a massive sell off.
- The stock has lost about two-thirds of its value over the past year.
Standout Loser
- Boston Beer (SAM) plunged 8% afer the company announced a lowered forecast for 2021.
- The brewer and alcoholic beverage producer said it could post a loss of up to $1 per share in 2021, although it still has hope for a potential profit of up to $1 per share as well. Previously, the company expected a result firmly in the black, with an EPS forecast of between $2 and $6.
- SAM blamed the new forecast on lower shipment growth and reduced margins. The disappointing shipment projection came as a result of more aggressive wholesaler inventory reduction, largely targeting the firm's troubled Truly brand.
- SAM finished Friday's session at $449.33, a decline of $40.54 on the day. The stock also set an intraday 52-week low of $428.13 before retracing some of its losses late in the day.
- Shares had reached a 52-week high of $1,349.98 last summer but began trailing off that high. The selling pressure intensified in the second half of July, after the company warned that Truly sales would not be as strong as it had previously expected.
- The downward drift continued through the rest of 2021. The stock is down about 52% over the past six months.
Notable New High
- Packaged food companies continued their recent gains on Friday, defying skepticism that the firms would face margin pressure because of cost inflation. During the session, General Mills (GIS), Flowers Foods (FLO), Tyson Foods (TSN) and J.M. Smucker (SJM) all established fresh 52-week highs.
- Taking GIS as a representative of the group, analysts had worried about the impact of inflation margins. In late December, the company released a quarterly report that showed that it had not raised prices fast enough to counteract higher costs.
- This put pressure on the group in general, as investors fretted about the long-term impact of rising expenses. Yet, many players in the space have defied these worries in recent weeks, churning higher despite the inflation concerns.
- For GIS, the stock has climbed steadily since the initial post-earnings sell-off. On Friday, shares added to those gains, rising $1.00 to finish at $69.90. This was just off an intraday 52-week high of $69.95.
Notable New Low
- A revised shareholders' agreement sent CureVac (CVAC) tumbling. Shares of the German biotech firm dropped 9% on the session to reach a new 52-week low.
- On Thursday, the German government and investment firm dievini announced that an updated shareholder agreement will be put into effect that requires the sale of CVAC stock.
- The prospect of this restructuring sparked a decline of $2.55 on the day, with CVAC closing at $24.48. During the session, the stock established a 52-week low of $23.09.
- CVAC hit a 52-week high of $133 in the first half of last year but suffered severe selling pressure from there. The stock is down about 76% over the past year.
- For more on Wall Street's best- and worst-performing stocks, turn to SA's On The Move section.
