NEWS
Small-Caps Soar To Record Highs

Source: Tenor.com

Stocks kicked off the week with gains, supported by positive sentiment around Scott Bessent’s Treasury secretary nomination. With 95% of the S&P 500 already reporting, results have been strong relative to expectations. Small-caps remain the star of the show as investors and traders venture further down the risk spectrum. 👀

Today’s issue covers the latest speculation in small-caps, two biotech drug blowouts, and other noteworthy pops and drops. 📰

Here’s the S&P 500 heatmap. 10 of 11 sectors closed green, with real estate (+1.34%) leading and energy (-1.97%) lagging.

Source: Finviz.com

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $OPI, $RGTI, $BCOV, $ZM, $BARK 📉 $M, $SAVA, $ONCT, $BBY, $BURL*

*If you’re a business and want to access this data via our API, email us.

STOCKS
The Russell 2000’s First Record In 3 Years 🥳 

The small-cap Russell 2000 made new all-time highs on an intraday basis, barely missing a record close as the bulls continue to take on more and more “riskier” bets. Now, all the major U.S. indexes are trading at all-time highs. 🤩 

Source: TradingView.com

As breadth continues to expand and speculation runs wild, beaten-down stocks like Beyond Meat, B. Riley Financial, AMC Entertainment, and more are all seeing a “catch up” bid from investors and traders alike.

Meanwhile, certain sectors and inudstry groups remain hotter than others. For example, space stocks continue to soar…with Rocket Lab leading the charge following two successfuly launches in less than 24 hours. Shares rose to new all-time highs on the news, as traders and investors continue to bet on big moves. 🚀 

Source: Stocktwits.com

And if you need further evidence of the wild moves happening in markets right now, you can check out ZenaTech ($ZENA), an AI-drone company that soared over 250% on the day alongside Joby Aviation and others. 🤪 

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COMPANY NEWS
Cassava Craters While BridgeBio Booms 💉 

Biotech investing is often a bet on binary outcomes, especially at the micro, small, and mid-cap segments of the industry. Oftentimes, company are betting big on a few key drugs, trying to maintain enough cash in order to get their treatments approved and bring them to market (or be acquired by a larger player).

In the case of Cassava Sciences, investors patiently awaited a company update that was scheduled over the weekend for Monday morning at 8 am ET. Investors and traders had speculated that the news would be good, but were left disappointed.

The company announced that Alzehimer’s drug failed to show a significant reduction in cognitive or functional declined compared with a placebo during a 52-week Alzheimer’s study. CEO Rick Barry called the results “disappointing” for patients and physicians who have been searching for new treatment options.

Despite management reassuring investors it is well capitalized, with $149 million in cash as of its latest quarter, shares still fell 84% in their largest-ever decline.

As for Stocktwits users, it’s a mixed bag between buyers and sellers at this point in our poll. However, sentiment readings based on today’s message activity on the platform have pushed into ‘extremely bearish’ territory. 😬 

Source: Stocktwits.com

Meanwhile, BridgeBio found itself on the right side of a drug trial, with the Food and Drug Administration (FDA) approving its drug, acoramidis (aka Attruby). The drug, which treats patients with transthyretin amyloid cardiomyopathy (ATTR-CM), will rival Pfizer’s blockbuster heart drug. 💊 

Pfizers drug, Vyndaqel, grew 36% YoY to $3.32 billion in sales, with analysts expecting $5.33 billion this year. BridgeBio’s drug is expected to capture some market share, though competition will remain fierece as Intellia Pharmaceuticals and Regeneron Pharmaceuticals teamed up on a gene-editing treatment for ATTR-CM.

BridgeBio Pharma soared on the news, rising as much as 31% intraday but closing up about half of that. Several analysts had positive things to say about the development, matching the Stocktwits’ community’s enthusiasm. 🐂 

Source: Stocktwits.com

STOCKS
Other Noteworthy Pops & Drops 📋

M&A Monday: Over $35 billion worth of transactions hit today, including: 🤝 

• Quikrete Holdings agreed to acquire Summit Materials for $11.5 billion.

• Italian bank UniCredit SpA made a $10.5 billion all-share bid for domestic rival Banco BPM SpA.

• Anglo American Plc agreed to sell its steelmaking coal business to Peabody Energy Corp. for as much as $3.78 billion.

• Mutual fund manager CI Financial Corp. plans to go private for $3.4 billion in a deal backed by Abu Dhabi’s Mubadala Capital.

Chegg (+13%): The education company announced the repurchase of its 0% converitble senior notes due 2026, as it adjusts its capital structure. 📚️ 

Eastman Kodak (+22%): The former photography industry gaint announced a major asset sale to the Mastercard foundation, the charitable arm of Mastercard Inc. 💳️ 

MicroStrategy (-7%): Several analysts upgraded the stock, with one saying the company is “on an insatiable path to attract bilions in global capital to invest in Bitcoin.” The company purchased another $5.4 billion in Bitcoin last week, bringing its total holdings to about 376,700. 🤑 

Uxin Ltd. (-19%): The used car retailer fell despite a rise in transaction volume causing an earnings and revneue beat, plus an upbeat outlook. Still, investors are concerned about the competitive landscape in China and overall economic growth. 🚘️ 

Macy’s (-2%): The retailer delayed its third-quarter report after finding that one of its employees intentionally hid expenses worth over $130 million. 😂 

D-Wave Quantum (-2%): Shares popped then dropped after announcing its third new board appointment in the last month. The stock, along with its peers, continue to gain traction as the market bets on the long-term potential of “quantum computing” as an industry. 🤖 

Lockheed Martin (-4%): The aerospace and defense giant lost ground despite potentially seucring $870 million in contract funding from the U.s. Department of Defense for F35 stealth fighter jets. However, concerns that Elon Musk and the “Department of Government Efficiency” will eat into Lockheed and its competitors’ margins (if it eventually comes to fruition) weighed on shares. ✂️ 

Bath & Body Works (+17%): The fragrance retailer topped third-quarter earnings and raised its guidance, with sales also reobunding (to fall less than anticipated). Its marketing efforts and investments in technology are apparently paying off. 🕯️ 

Scholar Rock Holding (+26%): The biotech’s rival, Biohaven, said its T-alfa drug failed to reach statistically significant results in treating spinal muscular atrophy. 💊 

WHAT’S ON DECK
Tomorrow’s Top Things 📋

Economic data: Case-Shiller Home Prices (9:00 am ET), Consumer Confidence (10:00 am ET), New Home Sales (10:00 am ET), FOMC Minutes (2:00 pm ET). 📊

Pre-Market Earnings: Abercrombie & Fitch ($ANF), Kohl’s ($KSS), Burlington Stores (BURL), Dick’s Sporting Goods ($DKS), Best Buy ($BBY), Analog Devices ($ADI). 🛏️

After-Hour Earnings: CrowdStrike ($CRWD), Dell Technologies ($DELL), Workday ($WDAY), HP ($HPQ), AutoDesk ($ADSK), PagerDuty ($PD), Iris Energy ($IREN), Guess ($GES), Urban Outfitters ($URBN), Nordstrom ($JWN). 🎧

P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍

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💸 Warren Buffett gives away another $1.1B and plans for distributing his $147B fortune after his death

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