Stocks rose on Friday, adding to gains posted the previous day amid signs of slowing inflation and the latest earnings report. This was the sixth consecutive day of gains for the Dow.
Electric vehicle stocks were among the top performers during the session. Lucidly (NASDAQ: LCID) surged more than 40% on takeover speculation, driving gains across the sector. Tesla ( TSLA ), Fisker ( FSR ), Rivian Automotive ( RIVN ) and Polestar Automotive ( PSNY ) were among the gainers.
Elsewhere, Fair Isaac (FICO) also advanced, posting better-than-expected results to a new 52-week high. The earnings news had the opposite effect on Stellar Bancorp ( STEL ), which fell to a 52-week low following its financial numbers.
Meanwhile, Hasbro ( HAS ) fell after revealing job cuts and a disappointing forecast.
Sector in focus
Lucid ( LCID ) surged 43% amid speculation that Saudi Arabia’s sovereign wealth fund is mulling a possible takeover of the electric vehicle maker. The advance fueled gains across the sector.
The report in Betaville’s “unprocessed” warning prompted chatter that Saudi Arabia’s Public Investment Fund is working on a plan to buy the rest of LCID that it does not 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 since the start of the week. The stock has now advanced for six straight sessions, including another 11% gain on Thursday. Shares are up 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 ) fell more than 8% after the company revealed disappointing guidance and announced a restructuring plan that includes job cuts and a major leadership shakeup.
The toymaker said it would cut about 1,000 jobs, or about 15% of its global full-time workforce. At the same time, the company revealed that its COO, Eric Nyman, will be leaving the company.
For the fourth quarter, the company forecast adjusted EPS of $1.29 to $1.31, excluding a number of one-time charges. Revenue is forecast to fall 17% to $1.68 billion.
HAS ended Friday trading at $58.61, down $5.17 on the day. With the pullback, the stock hit its lowest closing level since late December. In the long term, stocks have fallen by about 35% in the past year.
Significant New High
The earnings news pushed Fair Isaac (FICO) to a new 52-week high. Shares rose more than 2% on the news.
The credit score analytics firm reported adjusted first-quarter profit that beat analysts’ expectations, helped by a 7% increase in revenue. The total figure was USD 344.9 million, which exceeded previous projections.
After a volatile start to the session, FICO rallied to an intraday 52-week high of $676.98. The stock has moderated since then, eventually closing at $660.25. This represented a gain of $14.20 per day.
Friday’s progress contributed to a longer-term rise in stocks. Shares are up about 9% in the past month and about 45% in the past six months.
Significant new low
A disappointing earnings number sent Stellar Bancorp ( STEL ) to a new 52-week low. Shares of the financial services company fell nearly 10% on the news.
STEL revealed a quarterly profit that fell compared to last year, well below the amount predicted by analysts. Meanwhile, the company said its provision for loan losses reached $44.8 million for the fourth quarter, compared with $2 million for the third quarter.
STEL traded down $2.75 to trade at $25.85 on Friday. During the session, the stock set an intraday 52-week low of $25.49.
For more of the day’s biggest gainers and losers, head over to the Seeking Alpha on the Move section.