Sizzling Shares: Gig economic system selloff; analyst sends AMGN larger; DICE soars; LEG drops

A late swoon prompted by concern associated to the U.Ok. bond market left the Nasdaq and S&P 500 decrease for the fifth consecutive session on Tuesday. The Dow gave up most of its early positive aspects however nonetheless completed in optimistic territory.

Among the many decliners on the session, gig-economy shares dropped on worries about stepped-up regulation. Uber (UBER), Lyft (LYFT) and DoorDash (DASH) all ended decrease.

Leggett & Platt (LEG) represented one other standout to the draw back. A lowered forecast despatched the inventory to a brand new 52-week low.

Trying to the upside, Amgen (NASDAQ:AMGN) rallied on an analyst remark, whereas DICE Therapeutics (DICE) jumped to a 52-week excessive on medical trial information.

Sector In Focus

Regulatory issues prompted promoting in gig-economy stalwarts like Uber (UBER) and Lyft (LYFT). The slides got here because the Biden administration proposed coverage modifications that would result in gig employees changing into full-time workers.

“Whereas unbiased contractors have an essential function in our economic system, now we have seen in lots of instances that employers misclassify their workers as unbiased contractors,” Labor Secretary Marty Walsh, stated in a press release. “Misclassification deprives employees of their federal labor protections, together with their proper to be paid their full, legally earned wages.”

On the information, UBER dropped about 10%, whereas LYFT fell about 12%. DoorDash (DASH) additionally fell, retreating about 6%.

Standout Gainer

Amgen (AMGN) obtained a lift from a bullish analyst remark, sending the inventory larger by nearly 6%.

Morgan Stanley gave an upbeat evaluation of the corporate’s AMG133 product, a possible weight problems therapy. Analyst Matthew Harrison argued that upcoming information in regards to the drug might be step one on the way in which to a multi-billion-dollar product.

Helped by the analyst notice, AMGN rallied $13.29 to shut at $245.44. The advance helped the inventory get better extra of the losses it posted within the first half of September, when the corporate’s pipeline hit some hindrances.

General, shares have seen uneven motion in 2022, though the inventory stays optimistic for the yr. AMGN is at present up about 8% for the reason that shut of 2021, in comparison with sharp declines within the general market.

Notable New Excessive

The discharge of medical trial information prompted a large surge in shares of DICE Therapeutics (DICE). The inventory skyrocketed 62% to achieve a brand new 52-week excessive.

The corporate revealed outcomes from a Part 1 trial of its DC-806 product in psoriasis. The drug candidate met its proof-of-concept aim within the research.

DICE completed Tuesday’s motion at $40, a achieve of $15.35 on the day. Shares additionally set a brand new intraday 52-week excessive of $45.99.

Notable New Low

Leggett & Platt (LEG) misplaced floor after the agency lowered its forecast for the complete yr. Shares of the engineered elements merchandise maker dropped 7% on the information.

LEG predicted EPS between $2.30 and $2.45. This was under its earlier forecast of $2.65 and $2.80. Analysts have been searching for a determine of round $2.71.

The agency additionally issued a disappointing income forecast, saying it sees a complete of $5.1B to $5.2B. The consensus of market specialists focused a complete of round $5.3B.

Dragged down by the forecast, LEG dropped $2.50 to shut at $32.17. This added to a basic downtrend that has marked a lot of the previous two months. In the course of the session, shares additionally touched an intraday 52-week low of $30.28.

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