Stocks rebounding from mid-June low: Weekly Stock Market Update

Last Week’s Top Five Market Winners

Nasdaq Stock Market (NASDAQ)

The past week included significant gains for Evofem Biosciences, Inc. (EVFM), MicroStrategy Incorporated (MSTR), Verv Therapeutics, Inc. (VERV), Affirm (AFRM), and Novavax, Inc. (NVAX). 

• Evofem Biosciences, Inc. (EVFM) share price soared more than 48% and was trading at $1.35 at week’s end.  Over the past year, the biotech company has dropped from more than $15 per share to as low as 0.27 cents in mid-June, a drop of more than 95%. Since bottoming out, Evofem has been trending upward. 
• Verve Therapeutics, Inc. (VERV) shares soared almost 36% after the gene-editing company amended its collaboration and licence agreement with Beam Therapeutics.
• Shares of Affirm (AFRM) surged over 35% as analysts predicted that the “buy now, pay later” company would grow rapidly in the fiscal year 2023.
• Novavax, Inc. (NVAX) had two positive developments this week, driving share prices 33% higher. Last Tuesday, the company’s Covid-19 vaccine Nuvaxovid was authorised by the European Union for adolescents between the ages of 12–17. In addition, SK Bioscience Co. was approved by the European Medicines Agency as a supplier for Nuvaxovid. 
• MicroStrategy Incorporated (MSTR) shares jumped more than 32% last week as the company rebounded from its 52-week low of $133 in mid-June, a drop of more than 70%. The data analytics firm recently revealed that it had bought another $10 million in Bitcoin at $20,817 per coin, bringing its total to almost 130,000 coins.  

NASDAQ TOP-PERFORMING STOCKS

New York Stock Exchange (NYSE)

Strong results were recorded on the New York Stock Exchange for Seritage Growth Properties (SRG.US), Wayfair Inc. (W), Ginkgo Bioworks Holdings (DNA), Diebold Nixdorf, Inc. (DBD), and Cano Health Inc. (CANO).

• Shares of property developer Seritage Growth Properties (SRG.US) surged more than 100% last week after the firm said it would request general shareholder approval to sell its real estate holdings. The company believes that by having this permission, as opposed to going to shareholders for each deal, it will be able to sell properties at a higher price.  
• Shares of online home store Wayfair Inc. (W) jumped 38% last week. The rise has been attributed to a general market rebound after steep losses over the first six months of 2022. Even with a great week, Wayfair is still down around 70% since the beginning of the year. The jump could also be driven by Wayfair’s upcoming earnings report set to be announced on August 4th.
• Diebold Nixdorf, Inc. (DBD) shares jumped more than 35% last week after the financial and retail technology company received a rating upgrade from “neutral”  to “outperform”  by Wedbush analyst Matt Bryson.
• Shares of Ginkgo Bioworks Holdings (DNA) skyrocketed more than 35% amid interest from Ark Invest’s Cathie Wood and billionaire Andreas Halvorsen, who purchased stocks of the biotech company.
• Shares of health services provider Cano Health Inc. (CANO) popped 31.7% amid rumours of a potential takeover by health insurer Humana.

NYSE TOP-PERFORMING STOCKS

Last Week’s Top Five Market Losers

Nasdaq Stock Market (NASDAQ)

The last seven days were less than ideal for Upstart Holdings, Inc.  (UPST), Kornit Digital Ltd. (KRNT), Qurate Retail Group, Inc. (QRTEA), Cardlytics, Inc. (CDLX), and Niu Technologies (NIU).

• Shares of AI lending platform Upstart Holdings, Inc.  (UPST) were seen 17% lower last week, after reporting disappointing preliminary Q2 results.
• Kornit Digital Ltd. (KRNT) dropped more than 16% this week after the company reported that its second-quarter revenue would be significantly below expectations. The digital printer company expects revenue to be around $30 million lower than previous estimates.  
• Shares of Qurate Retail Group, Inc. (QRTEA) fell more than 15% as the Internet retail firm continued to trend lower. Since the beginning of 2022, the company has dropped more than 60% and last week, Citigroup lowered its target price on the stock by $1 to $3 per share. 
• Purchase intelligence firm Cardlytics, Inc. (CDLX) is down more than 70% since the beginning of 2022. Last week, the company dropped another 15% with its share price dipping lower than $20. Recently, JP Morgan Chase lowered its target price for the stock to $35, down from $47.
• Electric scooter company Niu Technologies (NIU) saw its shares tumble more than 14% last week after the Beijing-based company posted weak quarterly sales results.  

 NASDAQ WORST-PERFORMING STOCKS

New York Stock Exchange (NYSE) 

On the New York Stock Exchange, Universal Corp/VA (UVV), Eldorado Gold Corp (EGO), Fomento Economico Mexicano SAB (FMX),  MAG Silver Corp (MAG), and RLX Technology INC-ADR (RLX) all experienced negative movement over the past week.

• The month of June saw a significant increase in short interest against tobacco company Universal Corp/VA (UVV), which crashed more than 12% last week.
• Shares of Vancouver-based gold mining company Eldorado Gold Corp (EGO) plunged almost 12% last week, bringing its total of 5-year losses to 51%.
• Fomento Economico Mexicano SAB (FMX) stock dropped almost 12% last week. The Mexican beverage and retail company, which operates internationally, announced a plan to take over Swiss kiosk operator Valora, in a $1.15 billion deal. The decline in share price came as investors were concerned FEMSA was paying too much. 
• MAG Silver Corp (MAG) shares dropped 11.4% last week, bringing the Canadian silver mining company down more than 21% over the past month.
• RLX Technology INC-ADR (RLX) shares fell 11% last week. The e-cigarettes company shares have been declining over the past several months, and have seen over 50% lower YTD. 

NYSE WORST-PERFORMING STOCKS

Highlights and Lowlights

Wall Street had a positive week with the NASDAQ 100 gaining close to 5%, the SPX500 up 2%, and the DJ30 adding less than 1%. 

Oil had a rollercoaster week: beginning the week at $105, rising to close to $110 before plunging below $94 mid-week due to recession fears. At the end of the week, the price of oil was above $102.50, not far from where it began at the beginning of the week. Wheat started and finished the week just under $900. However, mid-week, the price of wheat tumbled below $790, the lowest the price has been since the Russia-Ukraine war began. 

Bitcoin briefly rose above $22,000 late in the week, before dropping to around $21,000. On Friday, a Euro was trading for $1.008, reflecting the continued strengthening of the US dollar. The last time the two currencies reached parity was in late 2002. 

What’s in Store for the Week?

Second-quarter earnings kick off this week and some major financial institutions will be reporting earnings at the end of the week. On Thursday, JPMorgan Chase, Morgan Stanley, Cintas, First Republic Bank and ConAgra Brands. On Friday, Wells Fargo, BlackRock, Citigroup, U.S. Bancorp, PNC Financial Services and BNY Mellon. Elsewhere, PepsiCo will announce earnings on Tuesday, Delta Air Lines on Wednesday, Taiwan Semiconductor Manufacturing Company on Thursday, and UnitedHealth Group on Friday. For a list of all of the companies set to report earnings this week, see the eToro earnings season calendar.

This week, New York Fed President John Williams will deliver a speech on Monday, Federal Reserve Board of Governors Member Chris Waller will be speaking on Thursday and Atlanta Fed President Raphael Bostic will speak on Friday. On Wednesday, CPI and Core CPI data for June will be released. PPI statistics for June will be released on Thursday, and Core Retail Sales and Retail Sales data will be released on Friday. 

The Bank of Canada will publicize its Monetary Policy Report and Rate Statement on Wednesday followed by a press conference. 

In the UK, Governor Bailey will testify in front of the Treasury Select Committee on Monday, and deliver a lecture at the Official Monetary and Financial Institutions Forum on Tuesday.