The first day of August was indeed a dark day for U.S. markets, as a huge decline in the Greek stock market combined with some tepid economic news in the U.S. spurred traders into selling mode.
Greece’s stock market fell 16% overnight (after being down as much as 23% at the opening) and Greek bank stocks were hit particularly hard as the Greek market opened for the first time in five weeks. The shock waves were felt throughout the European and U.S. markets.
In U.S. economic news, the Institute for Supply Management said their ISM manufacturing data fell from 53.5 last month to a disappointing 52.7 level, below forecasts of 53.5. A reading over 50 is positive, but it doesn’t do Wall Street’s nerves any favors when the ISM numbers inch closer to that 50 level.
Also, the Commerce Department reported that spending on construction was up only 0.1% in June, the smallest amount since January of this year.
The Dow Jones Industrial Average was down 0.5%, while the S&P 500 Index and the Nasdaq Composite were both off by 0.2%. Almost every sector was in the red, and energy stocks were down by more than 2% as the price of crude oil declined more than 3% to $45.43 a barrel.
It was certainly not a day when a lot of stocks were substantially higher, but Frontier Communications Corp (NASDAQ:FTR), Autodesk, Inc. (NASDAQ:ADSK) and Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) still had strong performances, and are thus three of today’s best stocks.
Here’s why these three were able to buck the overall gloom and doom:
Frontier Communications Corp (FTR)
Frontier Communications stock shot up 8% today after beating earnings and announcing an increase in its customer base. FTR reported second-quarter adjusted earnings of 3 cents a share on revenue of $1.37 billion, besting analyst estimates by a penny, and matching the Street on its revenue forecast.
Frontier also announced that they have added 29,200 more Internet subscribers during the second quarter. Furthermore, several analysts are now feeling comfortable that FTR will also be able to continue its current dividend yield, currently over 8%.
Autodesk, Inc. (ADSK)
ADSK stock was up 5% after Credit Suisse AG (ADR) (NYSE:CS) reiterated its Outperform rating and set a target of $80, while adding ADSK to its U.S.-focus and Global-focus lists.
ADSK also announced that its new Stingray game engine will be available to game developers after August 19th. Stingray is a new platform for creating 3D video games.
ADSK also said it will announce its next quarterly earnings on August 27.
Lexicon Pharmaceuticals, Inc. (LXRX)
Lexicon stock soared 61% today after announcing positive results for its cancer drug telotristat etiprate in a phase 3 clinical trial. The drug, which treats carcinoid syndrome, met its primary endpoint of controlling the debilitating digestive symptoms associated with carcinoid syndrome.
Lexicon will now apply with the Food and Drug Administration for a new drug application. Hedge funds have been scooping up substantial shares of LXRX stock for several months now. It’s no wonder that LXRX stock has doubled in price since April.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
