- On a day when the Nasdaq and S&P 500 lost ground, oil stocks represented a rare bright spot on Monday. The sector climbed as the U.S. and OPEC+ squared off over crude supplies.
- ConocoPhillips (NYSE:COP), Diamondback Energy (NASDAQ:FANG), Occidental Petroleum (NYSE:OXY), Phillips 66 (NYSE:PSX) and Exxon Mobil (NYSE:XOM) all rose during the session.
- Astra Space (NASDAQ:ASTR) was another major gainer, posting a double-digit percentage gain on news that it had completed a successful commercial launch.
- Palo Alto Networks (NASDAQ:PANW) also pushed higher, extending recent gains and establishing a fresh 52-week high.
- Turning to some of the day's biggest decliners, Aurinia Pharmaceuticals (NASDAQ:AUPH) lost almost a third of its value as the filing of a mixed shelf offering provided the catalyst for investors to clear out some of the stock they purchased earlier this month amid speculation of a potential takeover.
- PayPal (NASDAQ:PYPL) lost ground as well. A broad decline among fintech and payment processing names dragged the stock to a new 52-week low.
Sector In Focus
- Oil stocks bounced back on Monday following losses over the previous two weeks. Crude prices firmed amid signs that a conflict might be brewing in the oil market between the U.S. and OPEC+ suppliers.
- The U.S. is reportedly close to releasing oil from the country's Strategic Petroleum Reserve, a move it will make along with several other countries.
- However, OPEC+ could take steps to offset the U.S. oil release. Officials from the cartel warned that they might increase production in response to any attempt to add supply through the opening of strategic stockpiles.
- Oil prices edged up on Monday. Amid rumors that the U.S. and China were considering the release of oil inventories, oil prices ended last week at their lowest level since the beginning of October.
- The rise in crude prices gave a lift to stocks tied to the commodity. ConocoPhillips (COP), Diamondback Energy (FANG), Occidental Petroleum (OXY) and Phillips 66 (PSX) all advanced more than 3%. Exxon Mobil (XOM) climbed about 1%.
Standout Gainer
- Astra Space (ASTR) jumped 17% after it completed its first commercial orbital launch for the U.S. Space Force. The company said the mission, which was launched from its facility in Alaska, was completed late Friday night.
- Calling the mission "a historic milestone," company founder and CEO Chris Kemp characterized the event as a key step toward accelerating its commercial activities.
- "We can now focus on delivering for our customers and scaling up rocket production and launch cadence," he said.
- ASTR advanced $1.64 on the session to close at $11.17. This was its highest close since late August.
Standout Loser
- Aurinia Pharmaceuticals (AUPH) suffered a massive sell-off on Monday, dropping 31% after filing regulatory documents to allow it to raise additional capital. Meanwhile, skepticism about recent takeover rumors contributed to the decline as well.
- Late Friday, AUPH filed with regulators for a $250M mixed shelf offering. This would allow the company to sell stocks, debt securities and warrants to raise the funds for activities like clinical development of its voclosporin product or other steps to advance its pipeline.
- However, the filing does not mean that a sale will happen any time soon. The shelf filing just opens up the possibility of a future offering, although investors worried about the dilution that might occur if a sale were to take place.
- Meanwhile, in late October, rumors swirled that AUPH could be the target of takeover interest. This speculation drove shares higher, taking them to 52-week high of $33.97
- With the shelf registration acting as the catalyst, some of this speculation premium likely came out of the stock on Monday.
- As a result, AUPH closed at $19.65, a decline of $8.82 on the session. Monday's retreat largely reversed the rally posted in late October.
- The stock is now 42% off its recent 52-week high.
Notable New High
- Palo Alto Networks (PANW) extended its recent gains, as the momentum generated from last week's strong earnings continued to push the stock higher. The latest advance allowed shares to set a fresh 52-week high.
- Last week, PANW released quarterly results that topped analysts' expectations. At the same time, the cybersecurity company raised its forecast for the full year.
- For fiscal 2022, the firm predicted revenues of $5.35B-$5.40B. This represented an upgrade from its previous forecast, which called for a figure between $5.28B and $5.33B.
- PANW advanced nearly 2% on the session to close at $539.96. A moderation late in the day took the stock off an intraday 52-week high of $559.54.
- Monday marked PANW's third consecutive day of gains and its seventh advance in the last eight trading sessions.
- The stock is up about 8% for the month and 48% over the past six months.
Notable New Low
- A broad decline in fintech and the payment processing sector drove PayPal (PYPL) to a fresh 52-week low.
- PYPL plunged early in the session, reaching an intraday 52-week low of $184.28. It recovered a sizable chunk of its early losses but still ended the day at $189.48. This represented a decline of about 2%.
- Shares of Paypal (PYPL) retreated in the context of a widespread downturn in the sector. Square (NYSE:SQ) was one of the worst performers among the industry's big players, falling by about 6%. Fiserv (NASDAQ:FISV) and Robinhood Markets (NASDAQ:HOOD) both slipped about 4%.
- Meanwhile, credit card companies Mastercard (NYSE:MA) and Visa (NYSE:V) also lost ground on the session. They posted losses of 5% and 3%, respectively.
- For more of the day's biggest gainers and losers, head over to SA's On The Move section.