In this article we will take a look at the some of notable stocks on the move today.
It’s a bullish day on Wall Street as all three major indexes are in the green. Both the S&P 500 and the Dow are up around 1% while the NASDAQ has rallied around 0.7%. Although the Evergrande situation in China remains unresolved, there is less fear and investors are now more focused on the Fed meeting.
Among the stocks that’s on the move include FedEx Corporation (NYSE:FDX), Incyte Corporation (NASDAQ:INCY), MGM Resorts International (NYSE:MGM), Devon Energy Corporation (NYSE:DVN), Freeport-McMoRan Inc. (NYSE:FCX), Facebook, Inc. (NASDAQ:FB), and Bank of America Corporation (NYSE:BAC). Let’s examine why each stock is moving and how elite funds are positioned among them.
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10. MGM Resorts International has rallied almost 6% due to sentiment around Chinese stocks improving. Other gambling stocks such as Las Vegas Sands have also rallied today and many Chinese stocks are also higher. Macau is a big market for MGM Resorts International and any potential improvement in China’s economic situation in the future could benefit Macau and Macau gaming stocks. Keith Meister‘s Corvex Capital was long more than 15.6 million shares of MGM Resorts International for the June 30, 2021 filing period.
9. Devon Energy Corporation is up around 7.3% due to the broader market rally and WTI prices rallying around 1.6%. Given that it produces oil, Devon Energy Corporation’s profits are affected by oil prices. If oil prices rally, Devon Energy Corporation could potentially benefit.
50 elite funds we track were long Devon Energy Corporation at the end of the second quarter, down 2 from the prior quarter.
8. Freeport-McMoRan Inc. is up around 4.4% likely due to sentiment around the future of China’s property market improving at least today. Many other stocks related to China’s property market have rallied on Wednesday as well and there is less fear over the systematic risks surrounding China Evergrande Group.
Because China imports a lot of copper and Freeport-McMoRan Inc.’s business depends a lot on copper prices, Freeport-McMoRan Inc. stock is affected by what’s occurring in China.
The number of elite funds we track that were long Freeport-McMoRan Inc. rose to 76 in Q2, 2021 from 68 in Q1, 2021.
7. Facebook, Inc. has fallen around 3.7% after the company provided an update on how Apple’s privacy policy changes could affect its ad business. In a blog post, Facebook, Inc. wrote, “As we noted during our earnings call in July, we expected increased headwinds from platform changes, notably the recent iOS updates, to have a greater impact in the third quarter compared to the second quarter.” Given the uncertainty, some investors apparently sold Facebook, Inc. although the stock continues to have long term tailwinds.
Of the around 873 top funds we track, 266 were long Facebook, Inc. in the second quarter, making it the second most widely held smart money stock in our database.
6. Bank of America Corporation is up around 2.8% due to the broader market rally and potentially due to the Fed meeting which is expected to focus on the timetable of the taper. With a leading commercial bank, Bank of America Corporation benefits from higher rates, if and when that should occur. Bank of America Corporation has done well in 2021 with a year to date rally of more than 33%.
Warren Buffett‘s Berkshire Hathaway was a major holder of Bank of America Corporation with a holding of 1,010,100,606 at the end of June 30.
Like MGM Resorts International, Devon Energy Corporation, Freeport-McMoRan Inc., Facebook, Inc., and Bank of America Corporation, FedEx Corporation and Incyte Corporation are also on the move.
5. FedEx Corporation is down around 8% after FedEx Corporation reported $4.37 in adjusted earnings per share and $22 billion in revenue for the first quarter of fiscal 2022. For the year earlier period, FedEx Corporation earned $4.87 per share from $19.3 billion in revenue. Higher labor costs and supply chain issues have been headwinds. 61 funds in our database of around 873 elite funds were long FedEx Corporation at the end of the second quarter of 2021.
4. Incyte Corporation has fallen around 6% after the FDA approved Incyte Corporation’s Opzelura for the topical treatment for mild to moderate atopic dermatitis, in patients 12 and older. Hurting Incyte Corporation shares could be that the approval is contingent on a ‘boxed warning’ over JAK inhibitors and risks over heart problems and potentially serious infections. Julian Baker And Felix Baker’s Baker Bros. Advisors was long around 32.02 million shares of Incyte Corporation at the end of June.
3. Adobe Inc. (NASDAQ:ADBE) is off around 3% after Adobe Inc. reported revenue of $3.94 billion and adjusted earnings of $3.11 per share for the quarter ended September 3. Although that’s better than the consensus estimate of $3.01 per share, Adobe Inc. has rallied a lot over the last two quarters and expectations may have been even higher.
The number of elite funds that we track that were long Adobe Inc. fell to 89 in Q2 from 107 in Q1.
2. Biogen Inc. (NASDAQ:BIIB) is around 1.6% in the red after the news site STAT indicated that Biogen Inc.’s Aduhelm could be potentially be launching slower than some expectations. Biogen Inc.’Aduhelm is the company’s newly approved Alzheimer’s disease therapy.
Of the around 873 elite funds we track, 67 were long Biogen Inc. in Q2.
1. Occidental Petroleum Corporation (NYSE:OXY) is up around 6% due to the rally in oil prices. Given
Occidental Petroleum Corporation produces substantial amounts of oil, an increase in oil prices could potentially benefit the company. With today’s rally, Occidental Petroleum Corporation shares are up over 55% year to date.
Carl Icahn‘s Carl Icahn owned over 49.1 million shares of Occidental Petroleum Corporation at the end of June.
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This article is originally published at Insider Monkey.
