Market Takeaways

For the week ending April 28, 2017

Overview

This was a positive week of modest increases for the DJIA and S&P 500 which enjoyed five-day increases of 0.01% and 0.006%, respectively. Each index’s five-day trends were characterized by Friday pullbacks, which is not all that uncommon.

Performers

Cerner Corp (CERN)- Among this week’s top performers is Cerner Corp, a health services and technology company based Kansas City, MO. The stock’s price surged from $60.04 to $64.75 on Friday alone. This 7.8% increase came as a result of Cerner reporting that it beat on both revenue and earnings.

Regeneron Pharmaceuticals Inc (REGN)- Another winner from this week was Regeneron Pharmaceuticals Inc, a biotech corporation based in Eastview, NY. The company’s stock experienced modest fluctuations all week before jumping from $361.56 to $388.49 between Thursday morning and Friday’s closing bell. About a month ago, Regeneron along with other pharmaceutical companies, were pleased to hear that the FDA approved the use of Dupixent, an injected drug used to treat eczema.

Alphabet Inc (GOOGL)- Alphabet’s stock enjoyed a $33.07 (3.7%) increase between Thursday’s closing bell and Friday’s closing bell. This increase came on the heels of Google beating on earnings.

Under-performers

Synchrony Financial (SYF)- Synchrony Financial, a financial services firm based in Stamford, CT watched its share-price fall after earnings both disappointed and fell. The company’s stock price closed yesterday at $27.80, a significant decrease of $5.25 (15.89%.)

O’Reilly Automotive, Inc. (ORLY)- Well-known O’Reilly Automotive experienced a Friday decline of $9.04 (3.51%) resulting in a closing price of $248.15 going into the weekend. This drop came in the wake of missing on both earnings and revenue.

Chesapeake Energy Corp (CHK)- Chesapeake Energy, an energy company based in Oklahoma City, OK fell $0.03 (0.57%) Friday, dropping it to a closing price of $5.26. CHK currently has market capitalization to the tune of $4.72 Billion and a beta of 2.37 which is expected of a stock with such a low share price. The average 1-year target price for Chesapeake Energy is $7.17, an increase of $1.91 (36.3%) from where the share-price currently stands.

What to Watch For

House Approaching Needed Support for Obamacare Repeal

The House seems to be getting closer to repealing the Affordable Care Act (ACA) which is certainly something to keep an eye on in regards to health insurance, biotech, and pharmaceutical stocks. Though the vote was delayed, the House Republicans is approaching the amount of support it needs as it now has the Freedom Caucus as well as the Koch Brothers on their side.