Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
Stocks took a pause from their solid advances over the past week, and although the Dow and S&P 500 both technically broke their winning streaks, losses of less than a point for the S&P and just 0.2% for the Dow didn't point to any true change in sentiment. In fact, Seattle Genetics (NASDAQ:SGEN), TripAdvisor (NASDAQ:TRIP), and Freescale Semiconductor (NYSE: FSL) all posted sizable gains on Wednesday, with positive news bolstering their shareholders' sentiment about the companies' prospects.
Seattle Genetics climbed 11% after the biotech company reported earnings results last night. Even though the company's losses rose by almost half, they were much lower than investors had feared. Although results from its Adcetris cancer drug have been mixed, investors are hopeful that other antibody drug conjugate candidates still in development could prove to be even more successful, and that seems to be driving optimism among shareholders today.
TripAdvisor gained 7%, as the online travel-review service managed to boost revenue by a larger-than-expected 25% in the quarter. Earnings fell by about 40%, as expenses jumped by half to weigh on overall margins. But with revenue gains both from advertising as well as subscription and transaction-based sales, TripAdvisor seems to have found a formula to monetize its service and earn consistent profits. That spurred an upgrade by RBC Capital Markets, adding to the feeding frenzy.
Freescale Semiconductor jumped 9% on news that the company had expanded a secondary stock offering to raise more cash. By adding 5 million shares to bring its total offering to 35 million, Freescale will add $92.5 million to its coffers. Even though the stock was offered at $18.50 -- below where the stock opened this morning -- investors nevertheless were pleased that investors could absorb that much supply after the sizable gains the stock has posted recently. Now, the company should be able to pay down high-interest debt, and that could help Freescale boost its profits down the road.