PRISM Market Moves on Friday: Madrigal Pharmaceuticals, Getty and Rivian Outperform; Adobe, ULTA Beauty Slide
US equities are trading mostly lower on Friday at midday after a mixed session on Thursday. Big tech is lower, and cosmetics, internet, software, semis, medtech, hotels, credit cards and tobacco are underperforming. Friday is seeing strong performances from machinery, copper, autos, biotech, banks, personal care, E&Ps, and ag chemicals. Treasuries are mixed, the Dollar index is flat, Gold is down (0.1%), Bitcoin futures are off (1.5%) and WTI crude is down (0.1%) but remains on track for a weekly gain.
Notable outperformers at midday are Madrigal Pharmaceuticals ($MDGL) which has soared +15.0% after receiving FDA approval for Rezdiffra to treat adults with non-alcoholic steatohepatitis (NASH) consistent with moderate to advanced liver fibrosis. Getty Images ($GETY) is up +4.7% on strong Q4 earnings and revenue, and notable growth in active annual subscribers driven by iStock and Unsplash+ subscriptions. Rivian ($RIVN) has gained +3.8% after being upgraded to overweight from neutral at Piper Sandler. Analysts cited strong initial orders of the company’s R2 SUV and company’s new capex plan.
The day’s decliners are Jabil ($JBL) which is down (14.4%) on weaker Q2 results with core EPS in line but revenue missed. The company’s Q3 revenue and EPS guidance came in below consensus. The company noted that revenue headwinds this year are expected to be short-term and that it expects to deliver strong core operating margins and free cash flow. Adobe ($ADBE) has lost (13.6%) on disappointing 2Q and FY24 guidance. Analysts cited enterprise momentum, operating margin expansion, and a $25 billion buyback as positives. ULTA Beauty ($ULTA) has fallen (5.3%) after beating FQ4 EPS and revenue but guiding below expectations for FY24 EPS. The company announced plans to enter Mexico in 2025.
