The "black swan" type of announcement of a $2 billion trading loss by JPMorgan Chase's (NYSE:JPM) "London Whale" through off plenty of stock predictions along with certain sectors of the stock market like banking stocks. Nevertheless, it's worth mentioning a few stock forecasts for stocks that would have otherwise grabbed much of the attention if not for the JPMorgan fiasco.
On Friday before the market opened, NextCandle.com gave the following stock predictions:
- Monster Worldwide (NYSE:MWW) had a 66% probability of making a higher high.
- Dillard's (NYSE:DDS) had a 69% probability of making a higher high.
- Arena Pharmaceuticals (NASDAQ:ARNA) had a 66% probability of making a higher high.
And the results when the market closed on Friday:
- Monster Worldwide (MWW) opened at $7.74 and was trading normally until about 1 pm when it immediately spiked to between the $9 and $9.50 level. Ultimately, Monster Worldwide (MWW) closed up 19.01% to $9.33 and had a trading range of $7.73 to $9.63 for the day. The catalyst for the rise was a rumor that Monster Worldwide (MWW), a global online employment solution with a presence in approximately 55 countries globally, could be acquired by LinkedIn (LNKD). However, it has since been reported that LinkedIn (LNKD) has passed up on any deal. Back in March, Monster Worldwide (MWW) had retained Stone Key Partners and Bank of America Merrill Lynch to review strategic alternatives - which including selling part or all of the company.
- Dillard's (DDS) opened at $69.75, had a trading range of $69.25 to $72.46 for the day and closed up $6.41% to $70.43 with a 578% surge in trading volume. Dillard's (DDS), which is a fashion apparel, cosmetics and home furnishing retailer, had just reported first quarter net income of $1.89 per share - up from the $1.31 per share reported in the prior year period and beating the consensus estimate of $1.67. Moreover, the first quarter was the company's seventh consecutive quarter of increased same store sales as well as record setting earnings and earnings per share performances. In contrast, rival Nordstrom (NYSE:JWN) fell 4.80% after reporting disappointing earnings for the first quarter.
- Arena Pharmaceuticals (ARNA), which had last closed at $3.66, immediately surged to open at $7.01 and closed 73.77% higher to $6.36. Arena Pharmaceuticals (ARNA) is a clinical-stage biopharmaceutical company that had just reported that the Endocrinologic and Metabolic Drugs Advisory Committee of the FDA voted 18 to 4 to conclude that the potential benefits of the company's drug lorcaserin outweigh the potential risks when used long-term in a population of overweight and obese individuals. Given how many overweight and obese individuals there are in the US alone, Arena Pharmaceuticals (ARNA) will attract considerable.
Again, Friday was an unusually day due to what can be best described as a black swan coming in the form of the announcement of the JPMorgan Chase's (JPM) trading loss which largely overshadowed other important news involving Monster Worldwide (MWW), Dillard's (DDS) and Arena Pharmaceuticals (ARNA). Nevertheless and in uncertain times like these, be sure to check your Next Candle's stock forecasts for the latest directional predictions for the stock you own or trade.
NOTE: THIS PIECE WAS JUST POSTED ON THE NEXTCANDLE.COM BLOG.