Stocks pushed higher on Friday, adding to gains posted the previous day amid signs of moderating inflation and the latest round of earnings reports. For the Dow, this represented the sixth consecutive day of gains.
Electric vehicle stocks were among the standout performers during the session. Lucid (NASDAQ:LCID) posted a rally of more than 40% on takeover speculation, fueling gains throughout the sector. Tesla (TSLA), Fisker (FSR), Rivian Automotive (RIVN) and Polestar Automotive (PSNY) were among the stocks showing gains.
Elsewhere, Fair Isaac (FICO) advanced as well, riding better-than-expected results to a new 52-week high. Earnings news had the opposite impact on Stellar Bancorp (STEL), which plunged to a 52-week low following its financial figures.
Meanwhile, Hasbro (HAS) plummeted after revealing job cuts and a disappointing forecast.
Sector In Focus
Lucid (LCID) surged 43% amid speculation that Saudi Arabia’s sovereign wealth fund was eyeing a possible takeover of the EV maker. The advance spurred gains throughout the sector.
A report in a Betaville “uncooked” alert stirred chatter that Saudi Arabia’s Public Investment Fund is working on a plan to purchase the remainder of LCID that it doesn’t already own. The fund currently owns more than 62% of the company.
Elsewhere in the sector, Tesla (TSLA) rose 11%, adding to an earnings-inspired rally from earlier in the week. The stock has now advanced for six straight sessions, including another 11% advance on Thursday. Shares have climbed 31% in the past week and 65% so far in 2023.
Among smaller EV players, Fisker (FSR) jumped 15%, Rivian Automotive (RIVN) climbed 8% and Polestar Automotive (PSNY) advanced 4%.
Standout Decliner
Hasbro (HAS) slumped more than 8% after the company revealed disappointing guidance and announced a restructuring plan that included job cuts and a major leadership change.
The toy maker said it would cut about 1,000 positions, or around 15% of its global full-time employees. At the same time, the firm revealed that its COO, Eric Nyman, would leave the company.
For Q4, the company predicted adjusted EPS of $1.29-$1.31, excluding a series of one-time charges. Revenue is projected to fall 17% to $1.68B.
HAS finished Friday’s trading at $58.61, a decline of $5.17 on the day. With the retreat, the stock reached its lowest close since late December. Longer term, shares have dropped about 35% in the past year.
Notable New High
The release of earnings news pushed Fair Isaac (FICO) to a fresh 52-week high. The stock rose more than 2% on the news.
The credit score analytics firm reported an adjusted Q1 profit that topped analysts’ expectations, helped by a 7% rise in revenue. The top-line figure totaled $344.9M, edging past projections.
After a choppy start to the session, FICO rallied to an intraday 52-week high of $676.98. The stock moderated from there, eventually finishing at $660.25. That represented a gain of $14.20 on the day.
Friday’s advance added to a longer-term upswing for the stock. Shares have climbed about 9% in the past month and about 45% in the past six months.
Notable New Low
A disappointing profit figure sent Stellar Bancorp (STEL) to a new 52-week low. Shares of the financial services company dropped almost 10% on the news.
STEL revealed a quarterly profit that plunged from last year, coming in well below the amount analysts had predicted. Meanwhile, the company said its provision for credit losses hit $44.8M for Q4, compared to $2M for Q3.
STEL dropped $2.75 to close Friday’s trading at $25.85. During the session, the stock set an intraday 52-week low of $25.49.
For more of the day’s biggest winners and losers, head over to Seeking Alpha’s On The Move section.
