Hot Stocks: Copper stocks fall; LZB rises on earnings; MO, KSS drop; VIVO sets 52-week high

view original post

Wall Street ended an uncertain session with mild losses on Wednesday. The lack of direction came as investors digested new commentary from Federal Reserve Chairman Jerome Powell.

While the stock market finished near the unchanged market, many commodities came under serious pressure. This included copper, which retreated during the session, taking stocks like Freeport McMoRan (FCX), Rio Tinto (RIO), BHP Group (BHP) and Vale (VALE) with it.

Elsewhere in the market, Kohl’s (KSS) dropped as well, weighed down by reports of a reduced bid from a takeover suitor. Altria (NYSE:MO) also showed weakness, as regulators reportedly look to ban its Juul products in the U.S.

Turning to the upside, La-Z-Boy (LZB) jumped on earnings news, while Meridian Bioscience (VIVO) added to recent gains to set another 52-week high.

Sector In Focus

Tuesday’s trading was marked by a slide in a diverse group of commodities. The retreat included copper, which sank to its lowest level since March 2021 as investors continued to fret about an eventual recession, which would cut into demand for the industrial metal.

Copper dropped almost 3% during the session, falling below $395 a pound. With the retreat, stocks related to the commodity suffered selling as well. This included Freeport McMoRan (FCX), which dropped 8%.

The downdraft also took a toll on Rio Tinto (RIO) and BHP Group (BHP), with both stocks dropping about 4%. Vale (VALE) dipped almost 2%.

Standout Gainer

Earnings news prompted buying in La-Z-Boy (LZB). Shares of the furniture maker rallied nearly 8% after announcing better-than-expected quarterly results.

The company reported revenue that surged nearly 32% to reach nearly $685M. LZB said its retail sales reached record numbers, while its direct-to-consumer Joybird unit experienced 62% sales growth.

The Street-topping figures sent LZB higher by $1.79, with the stock closing at $24.52. With the advance, shares ticked further off a 52-week low of $22.24 reached last week.

Even with the recent gains, shares remain about 33% lower for 2022.

Standout Loser

The ongoing saga surrounding Kohl’s (KSS) attempts to sell itself continued on Wednesday, with the stock plunging on reports that a bidder is thinking about cutting its offer price. The news sent the stock lower by nearly 9%.

A report from CNBC indicated that Franchise Group (FRG) is evaluating the possibility of slashing its bid for KSS. The new offer would equate to $50 per share, the business news channel said, compared to the previous number of $60 per share.

With the prospect of a lower bid, KSS dropped $3.72 to close at $38.61. This was its lowest finish in nearly a month, although it remains off a 52-week low of $34.64 reached in late May.

Notable New High

The recent upswing for Meridian Bioscience (VIVO) continued on Wednesday, with the stock climbing nearly 3% and setting yet another 52-week high.

VIVO finished trading at $29.75, an advance of 75 cents on the day. Shares also reached an intraday 52-week high of $29.94.

With the advance, the stock added to a longer-term advance. VIVO has received a boost in 2022 as it has experienced strong demand for its reagents, which have uses in COVID testing.

VIVO has climbed nearly 15% over the past month and nearly 44% so far in 2022.

Notable New Low

Altria (MO) showed significant weakness as regulators have their sights set on the firm’s Juul E-Cigarette products. Shares dropped 9% with the U.S. Food and Drug Administration expected to remove Juul e-cigarettes from the U.S. market.

According to the Wall Street Journal, the FDA will reject Juul’s application to sell tobacco- and menthol-flavored products. The decision would follow a review period of over two years.

Weighed down by the news, MO declined $4.22 to finish at $41.48. During the session, the stock also reached an intraday 52-week low of $41.

Wednesday’s slide added to recent weakness for the stock. MO has dropped about 20% in the past month.

For more of the day’s biggest winners and losers, turn to Seeking Alpha’s On The Move section.

Related Posts