Image source: Endeavour Silver.
The stock market didn't give investors the post-holiday celebration they had hoped for, as most major benchmarks fell around 0.5% to 1% on the day. Market commentators attributed the dour mood to renewed concerns about the fallout from the U.K. vote to leave the European Union and its consequences on the global economic recovery. Bond yields continued to plunge, and the 10-year Treasury hit 1.37%, which was a new record low for the security. Oil prices weakened, however, hitting the energy sector especially hard. Still, some stocks posted solid gains on Tuesday, and Insys Therapeutics (INSY), Endeavour Silver (EXK 3.16%), and Himax Technologies (HIMX -2.82%) were among the best performers on the day.
Insys gets an approval
Insys Therapeutics gained 8% after the maker of cannabis-based treatments won a key approval from the U.S. Food and Drug Administration. The company's Syndros brand of cannabinoid dronabinol is now allowed for use in treating anorexia associated with weight loss in patients with AIDS, as well as in treating nausea and vomiting from cancer-related chemotherapy treatments in patients who haven't responded to conventional treatments. The approval allows the drug to be used orally, making it the only product on the market that can make that claim. The company still needs to get Syndros scheduled by the U.S. Drug Enforcement Administration, but Insys believes that it should be able to launch a marketing effort at some point during the second half of 2016.
Endeavour shines brighter
Endeavour Silver rose 5% in the wake of another strong day for the precious metals markets. Gold prices climbed almost $20 an ounce to approach the $1,360 mark, and silver hit a two-year high of $21.22 per ounce before falling back somewhat. Metals traders attributed the upward moves to the perception of gold and silver as safe havens for investors in light of the Brexit vote. Endeavour in particular has had some success lately, having announced last week that the company's surface exploration program has found several new silver and gold veins on its Terronera site in Mexico. The miner is looking closely at its El Padre and La Luz veins, and with what it called excellent sample results, Endeavour hopes it can take full advantage of a silver rebound.
Himax bounces back
Finally, Himax Technologies climbed 7%. The upward move clawed back most of the company's share price decline from Friday, and the primary reason came from the release of its preliminary second-quarter financial results. The company said that it hit the high end of guidance for revenue and gross margin, while earnings per share were actually above Himax's guidance range. In particular, GAAP earnings of $0.115 per share topped the higher end of the company's predictions by $0.01 per share, and Himax remains positive about its outlook for the remainder of the calendar year. Himax also explained that the departure of retiring Chief Technology Officer Chih-Chung Tsai should have no impact on its technology development because of the interaction of founder Biing-Seng Wu with the rest of the company.
