The release of stronger-than-expected ADP jobs data prompted selling on Wall Street during Thursday’s session. Indications of a tight labor market fueled concerns about further rate hikes from the Federal Reserve, sending the S&P 500 lower by about 1.2%.
Looking at individual stocks, crypto-focused bank Silvergate Capital (NYSE:SI) plummeted more than 40% after announcing a massive restructuring effort amid declining deposits. Elsewhere, a “going concern” warning caused one-time meme stock Bed, Bath & Beyond (BBBY) to lose nearly a third of its value and reach a new 52-week low.
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On the other side of the spectrum, strong clinical trial data sparked a surge in NovoCure Limited (NVCR) and Zai Lab Limited (ZLAB). Meanwhile, earnings news allowed Lamb Weston (LW) to rally to a new 52-week high.
Standout Gainer
NovoCure Limited (NVCR) and Zai Lab Limited (ZLAB) skyrocketed following the release of strong clinical trial results. NVCR jumped 68%, while ZLAB surged 42%.
The companies said Tumor Treating Fields, a process that uses low intensity alternating electric fields to fight cancer, met the primary endpoint of a Phase 3 study in non-small cell lung cancer.
NVCR climbed $48.28 to close at $118.81, breaking out of a trading range that held it throughout 2022. Shares also touched an intraday 52-week high of $120.03.
Turning to ZLAB, the stock ended the session at $48.10, a rally of $14.18. With the advance, shares reached their highest finish since September.
Standout Decliner
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Spurred lower by continued customer withdrawals and a massive restructuring effort, Silvergate Capital (SI) experienced an investor exodus, leading the stock to plunge 43%.
The crypto-focused bank announced that it would cut its headcount by about 40% and take other restructuring steps, including streamlining its product portfolio and reassessing its customer relationships. The firm added that it will take a $196M impairment charge in Q4.
SI reported that total deposits from digital asset customers reached $3.8B as of Dec. 31, compared to a level of $11.9B on Sept. 30.
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“In response to the rapid changes in the digital asset industry during the fourth quarter, we took commensurate steps to ensure that we were maintaining cash liquidity in order to satisfy potential deposit outflows, and we currently maintain a cash position in excess of our digital asset related deposits,” CEO Alan Lane said.
SI finished Thursday’s trading at $12.57, a decline of $9.38 on the session. During the day, the stock also reached an intraday 52-week low of $11.14. Overall, SI has dropped about 91% over the past 12 months.
Notable New High
Lamb Weston (LW) rode a strong earnings report to a new 52-week high. Shares of the food processing company climbed about 10% after the firm beat expectations with its latest quarterly report and raised its forecast.
LW reported a Q2 profit of $1.28 per share, topping analysts’ projections of $0.54 per share. Revenue advanced 27% to $1.28B, exceeding Wall Street’s consensus by $130M.
Looking ahead, the firm projected 2023 net sales of $4.8B-$4.9B, up from its previous forecast of $4.7B-$4.8B. Analysts are looking for a figure of around $4.7B.
“We expect the continued implementation of pricing actions to counter higher input and potato costs to drive our financial results in the second half, while our volume performance will continue to be affected by supply chain constraints and inflationary pressures on consumers,” company CEO Tom Werner said.
Bolstered by the earnings report, LW advanced $8.55 to close at $96.03. The stock also established a fresh intraday 52-week high at $96.87.
The advance added to a general uptrend that has marked trading since last March. Shares have climbed more than 30% over the past six months.
Notable New Low
Bed, Bath & Beyond (BBBY) endured massive selling pressure after the company revealed that it will not be able to release its 10-Q on time and issued a so-called “going concern” warning. The stock dropped 30% to reach a new 52-week low.
The home products retailer disclosed that it has concluded that there is “substantial doubt” about the company’s ability to continue as a “going concern.” Given the situation, BBBY noted that it is pursuing actions meant to improve its cash position and minimize the damage from any liquidity shortfall.
On the news, BBBY plunged to an intraday 52-week low of $1.63. Shares ticked off that mark headed into the close but still finished at $1.69, a decline of 72 cents on the session.
The one-time meme stock had reached a 52-week high of $30.06 last year. Over the past 12 months, BBBY has lost 88% of its value.
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