Stocks finished sharply higher on Friday, capping off a weekly relief rally and regaining some of the losses that marked the middle of June. The Nasdaq and S&P 500 both rose more than 3%, while the Dow added more than 800 points.
Cruise companies helped lead the advance after Carnival (CCL) signaled a significant increase in occupancy in its latest earnings results. The upbeat sign for the travel industry prompted buying in rivals Norwegian Cruise Line (NCLH) and Royal Caribbean Cruises (NYSE:RCL) as well.
The list of notable gainers also included Zendesk (ZEN), which expanded its value by more than 25% on a takeover deal. Elsewhere, continued buying allowed Bristol-Myers Squibb (BMY) and Eli Lilly (LLY) to set new 52-week highs.
Looking to the downside, CalAmp (CAMP) lost almost a third of its value following the release of disappointing financial figures.
Sector In Focus
Cruise stocks rose after earnings results from Carnival (CCL) gave a lift to the overall sector. Helped by positive signals from their rival, Norwegian Cruise Line (NCLH) and Royal Caribbean Cruises (RCL) both surged in sympathy.
On the surface, CCL issued shaky results, with a wider-than-expected loss and revenue that likewise came in below analysts' projections. However, the company revealed occupancy that rose to 69%, compared to just 54% in the previous quarter.
CCL climbed 12% following its earnings report. At the same time, RCL rallied 16%, while NCLH gained 15%.
A takeover deal sparked a wave of buying in Zendesk (ZEN), which soared 28% after reaching a $10.2B agreement to be acquired.
Under the deal, an investor group led by Permira and Hellman & Friedman will purchase the company for $77.50 per share. Earlier this month, ZEN announced that it would stay independent following a strategic review.
ZEN jumped $16.22 to close the day at $74.17. Shares had retreated to a 52-week low of $54.16 earlier this month. Even with Friday's gains, the stock has only returned to its levels of a few weeks ago.
CalAmp (CAMP) endured a massive selling spree following the release of disappointing quarterly results. Shares of the provider of Internet of Things software applications dropped almost 31% on the news.
The company reported an operating loss that widened from last year, with revenues that dropped almost 19%. The company, which pointed to increased subscription revenue as a bright spot, was hurt by ongoing component shortages.
CAMP finished Friday's trading at $4.99, a decline of $2.19 on the session.
Shares had reached a 52-week low of $4.70 earlier this year but were attempting a recovery headed into the quarterly release. With the earnings-inspired drop, CAMP retraced most of that recovery, reaching an intraday low of $4.80.
Notable New High
Bristol-Myers Squibb (BMY) and Eli Lilly (LLY) pushed further higher on Friday, adding to recent gains accumulated as investors looked for recession-proof spots to store their money ahead of a potential economic downturn. With the advance, the rival drug makers both secured new 52-week highs.
BMY climbed almost 2% on the session and finished the day at $78.96. Shares ended just off their highs, reaching an intraday 52-week peak of $79.
LLY saw even stronger buying during the session. The stock climbed 4% to close at $325.62 after reaching an intraday 52-week high of $325.82.
While the overall market has suffered in 2022, defensive stocks have held up better than most other market segments. Investors have rotated into stocks like drug makers, which will likely see sustained demand for necessary products (like medicine) even if interest rate increases lead to an eventual recession.
For more on the day's biggest winners and losers, head over to Seeking Alpha's On The Move section.