Hot Stocks: Oil service stocks drop; AMLX plunges; AUR jumps; MMM hits 52-week low

Sep. 02, 2022 5:50 PM ETAmylyx Pharmaceuticals, Inc. (AMLX)PTEN, HAL, MMM, BKR, SLB, NEX, AURBy: Brian Stewart, SA News Editor5 Comments

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Stocks were unable to hold an early advance on Friday, eventually finishing the session lower amid concerns about energy supplies in Europe. An initial rally, sparked by well-received jobs data, proved short-lived, as the Nasdaq recorded its sixth consecutive day of losses.

With energy supplies in focus, oil service stocks were able to buck the overall negative trend. Patterson-UTI (PTEN), NexTier Oilfield (NEX), Halliburton (HAL), Schlumberger (SLB) and Baker Hughes (BKR) all posted gains.

Aurora Innovation (AUR) also avoided the downdraft. M&A chatter ignited a double-digit percentage gain in the stock.

Among the day's biggest decliners, Amylyx Pharmaceuticals (NASDAQ:AMLX) lost almost a quarter of its value on worries about an upcoming regulatory advisory hearing. At the same time, 3M (MMM) took another step lower, falling to a fresh 52-week low.

Sector In Focus

Energy stocks were among the few winning sectors during the session. Increased concerns about supplies sparked gains in the space, including widespread buying among oil service names.

Patterson-UTI (PTEN) was among the standout winners in the oil service group, climbing by more than 7%. NexTier Oilfield (NEX) also advanced about 7%. Elsewhere, Halliburton (HAL) rose almost 4%, while Schlumberger (SLB) and Baker Hughes (BKR) both climbed about 3%.

A key catalyst in the energy sector came out of Europe. Russia's Gazprom revealed that it won't reopen an important gas pipeline to Europe due to technical issues. The company did not provide guidance as to when the Nord Stream pipeline would again ramp up capacity.

Standout Gainer

Takeover speculation sent Aurora Innovation (AUR) sharply higher. Shares of the self-driving technology company jumped 15% after its CEO suggested a number of potential scenarios, including the sale of the company.

According to a Bloomberg report, CEO Chris Urmson suggested a number of possible strategies in a company memo if deteriorating market conditions force it to make a major strategic move. This included taking the company private, selling assets or potentially selling to another big player.

Based on the M&A chatter, AUR rose 32 cents to close at $2.43. Even with the recent uptick, the stock remains 79% lower for 2022.

Standout Decliner

Concerns about an upcoming regulatory advisory hearing prompted selling in Amylyx Pharmaceuticals (AMLX). The stock fell 23% after the U.S. Food and Drug Administration posted briefing documents ahead of an advisory committee meeting scheduled for next week.

At the meeting, a group of independent experts is scheduled to consider AMLX's AMX0035 product, a potential treatment for amyotrophic lateral sclerosis. This would represent a second review for the drug, which received a negative committee vote in March.

The release of the briefing documents sparked a mid-day selloff. AMLX eventually finished at $18.08, plunging $5.46 on the session.

With the slide, the stock recorded its lowest close since late June. The stock is now essentially flat for 2022.

Notable New Low

3M (MMM) declined again on Friday, weighed down by ongoing complications stemming from a lawsuit related to earplug products. The stock declined 3% to reach another 52-week low.

MMM finished the session at $121.65, a decline of $4.10. Just before the close, shares touched an intraday 52-week low of $121.15.

Shares have fallen sharply since mid-August. Since its close on Aug. 12, the stock has lost about 20% of its value. For 2022 as a whole, shares have dropped 33%.

The recent slide has come amid a series of headlines related to the earplug headwind. Most recently, the company faces a new lawsuit meant to block the planned spinoff of its healthcare business.

The latest action is part of ongoing legal wrangling stemming from accusations that MMM and a bankrupt subsidiary sold defective combat earplugs.

To see more of the day's biggest winners and losers, head over to Seeking Alpha's On The Move section.

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