S&P 500, Nasdaq Plunge 2.7% as Trump Trade War Intensifies

Mukesh Buch
02 Apr, 2018
New York City

ARMO BioSciences net loss widened. Argos Therapeutics net loss narrowed after revenues jumped. Cal-Maine Foods slumped despite strong third-quarter results. NextEra Energy Partners agreed to sell its six Canadian wind power business for $741 million.

[R]1:15 PM New York City, New York – ARMO BioSciences net loss widened. Argos Therapeutics net loss narrowed after revenues jumped. Cal-Maine Foods slumped despite strong third-quarter results. NextEra Energy Partners agreed to sell its six Canadian wind power business for $741 million.[/R]

Volatile market indexes dropped sharply in the morning trading after the slump in tech stocks extended to broader market.

Dow Jones Industrial Average declined 2.2%, S&P 500 index dropped 2.4% and the tech heavy Nasdaq plunged 2.7% pushing the average in the negative territory for the year.

The sell-off started in the tech sector on valuation worries and European markets shut for Easter holiday and the decline deepened and spread to consumer and larger cap stocks.

Earnings Review

ARMO BioSciences Inc ((ARMO)) dropped 2.1% or 78 cents to $36.63 after the immuno-oncology products maker reported said net loss in the year ending in December widened to $42.4 million or $28.52 per diluted share from $33.6 million or $26.25 per share in the same period a year ago.

Argos Therapeutics Inc ((ARGO)) jumped 4.4% or 40 cents to 94 cents after the therapeutic drug maker said revenues in the first-quarter ending in February soared from a year ago to $1 million.

Net loss in the quarter narrowed to $1.9 million or 38 cents per diluted share from $15.4 million or $7.45 in the same quarter last year.

Cal-Maine Foods Inc ((CALM)) slumped 3.1% or $1.35 to $42.35 after the shell eggs provider reported revenues in the third-quarter ending on March 3 surged 42.2% from a year ago to $435.8 million.

Net income in the quarter soared to $96.3 million or $1.99 per diluted share from $4.1 million or 9 cents in the same quarter last year.

NextEra Energy Partners, LP ((NEP)) gained 1% or 41 cents to $40.40 after the renewable energy agreed to sell its Canada-based six wind and solar power projects to Canada Pension Plan Investment Board for about $741 million.

The transaction is expected to close during the second-quarter of this year.

Spectrum Brands Holdings, Inc ((SPB)) declined 5.8% or $6.01 to $97.69 after the consumer products maker said that Federal Trade Commission allowed expiration of the mandatory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act in respect of the spectrum brands'' battery and portable lighting products business acquisition by Energizer Holdings Inc.

""We look forward to closing the acquisition of Spectrum Brands'' battery and lighting products business and welcoming their global team into the Energizer family,"" said chief executive officer of Energizer Holdings Inc Alan Hoskins.

The transaction expected to close in the second-half of 2018.