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- Even on a down day for the major averages, credit card and payment processing stocks represented standout losers in Monday's session. Signs that Twitter (NYSE:TWTR) is leaning more heavily on Bitcoin (BTC-USD) weighed on stocks like Mastercard (NYSE:MA), Visa (NYSE:V), Square (NYSE:SQ) and PayPal (NASDAQ:PYPL).
- FedEx (NYSE:FDX) epitomized the pessimistic mood of Monday's trading. The package delivery giant added to its recent weakness to set a new 52-week low.
- Meanwhile, shares of Amplify Energy (NYSE:AMPY) lost nearly half their value on news of an oil spill in California.
- Energy stocks bucked Monday's overall downward trend. A rally in oil prices drove several big names in the sector to new 52-week highs.
- ConocoPhillips (NYSE:COP), Marathon Oil (NYSE:MRO), Devon Energy Corp. (NYSE:DVN) and Murphy Oil (NYSE:MUR) all set fresh peaks.
- Among individual bright spots, Xenon Pharmaceuticals (NASDAQ:XENE) more than doubled during the session, boosted by the release of data for an experimental epilepsy treatment.
Sector In Focus
- The threat of low-cost competition from cryptocurrencies put pressure on credit card and payment processing stocks on Monday. Specifically, the sector was dragged down by signals that Bitcoin could become an increasingly prominent payment option on one of the world's biggest social media platforms.
- On the news, Mastercard (MA) dropped 4% and Visa (V) fell by 2.5%. Meanwhile, Square (SQ) retreated by nearly 5.5% and PayPal (PYPL) dropped by almost 4%.
- Last month, Twitter (TWTR) announced that it would partner with a company called Strike to open up the use of Bitcoin (BTC-USD) to deliver tips to content creators on the platform.
- Late last week, Strike's CEO, Jack Mallers, touted the connection with TWTR, suggesting in a CNN interview that the cryptocurrency is being used as a "standard under the hood" at the app.
- He also contended Bitcoin would reduce the cost of sending money to zero, threatening the business model of the credit card and payment processor firms.
Standout Gainer
- Xenon Pharmaceuticals (XENE) soared nearly 102% on Monday after the company announced positive data from a mid-stage trial of its XEN1101 in patients with focal epilepsy.
- Results of the study met the primary efficacy endpoint, with XEN1101 outperforming a placebo in reducing focal seizure frequency. The product was also generally well-tolerated without signs of increased safety issues compared to other similar treatments.
- On the news, XENE jumped $15.90 to close at $31.50. Going into Monday, shares had generally moved sideways for the year, although they had seen mild selling pressure over the last few weeks. Last week, the stock reached its lowest level since February.
Standout Loser
- News of an oil spill along the California coast sparked a massive sell-off in shares of Amplify Energy (AMPY). The stock plummeted 44% on the session.
- Over the weekend, the company announced that it has shut down its pipeline following a leak from an oil platform off the coast. The company halted the leak, but 126K gallons of crude were released, leading to a 13-square mile oil spill.
- AMPY closed at $3.23, a decline of $2.52 on the day.
- Shares had been on an upswing prior to the oil spill. The stock had risen from a level just above $3 in early August to a 52-week high of $5.78 set late last week.
- Even with Monday's substantial sell-off, the stock remains up 154% for 2021 as a whole. It has risen more than 300% over the past 12 months.
Notable New High
- Monday saw a significant pull-back in the overall equity averages. Yet, oil-related stocks stood out as a rare bright spot during the day, allowing many large players in the sector to score new 52-week highs.
- Crude prices spiked to multi-year highs during the session including a greater-than-2% rise in WTI. The rally took place after an OPEC+ panel recommended that the organization hold its current production levels steady.
- The jump in crude prices sent stocks in the sector sharply higher. This allowed some major names to extend recent highs.
- The list of new peaks included Devon Energy Corp. (DVN), which jumped 5% on the session and set a fresh intraday 52-week high of $39.40. Murphy Oil (MUR) also posted a 5% advance, adding to recent gains and closing at a fresh 52-week high of $27.68.
- Meanwhile, ConocoPhillips (COP) rose 2% to set an intraday 52-week peak of $72.61. Marathon Oil (MRO) climbed 4% and recorded a fresh high of $15.08.
Notable New Low
- With a retreat as steep and broad as the major averages experienced on Monday, hundreds of individual stocks reached new 52-week lows during the day. However, few of these have the centrality to the economy as FedEx (FDX), making its establishment of a fresh nadir particularly noteworthy.
- The stock slipped 2% on the day to end at $217.87. This represented a new closing 52-week low and was just off an intraday trough of $217.26 set during the session.
- FDX set a 52-week high of $319.90 in late May but has generally suffered selling pressure in the second half of the year so far.
- This intensified two weeks ago, when the company plunged in the wake of a weak earnings report. The company has continued to drift lower since, dropping to its lowest level since August 2020.
- Don't wait until the closing bell to find out the day's biggest winners and losers. Track them throughout the session with SA's On The Move section.