Persistent concern about next week's Federal Reserve meeting weighed on stocks again during Wednesday's trading. The S&P 500 slipped for the fifth consecutive session, with the Nasdaq pushing lower as well. The Dow eked out a fractional gain.
Turning to individual stocks, shares of Prometheus Biosciences ( RXDX ) more than doubled after the company announced strong clinical trial data. Meanwhile, Academy Sports and Outdoors ( ASO ) posted a double-digit percentage gain following its earnings report.
On the downside, Carvana ( NYSE: CVNA ) plunged more than 40% after an agreement among its creditors raised bankruptcy concerns. At the same time, Smith & Wesson Brands ( SWBI ) sank to a new 52-week low following the release of disappointing quarterly results.
Standout Gainer
The release of clinical data sent shares of Prometheus Biosciences ( RXDX ) soaring, with the stock skyrocketing 166%.
The company said its PRA023 product showed strong efficacy and favorable safety in two mid-stage trials. The studies looked at the drug in patients with ulcerative colitis and Crohn's disease.
RXDX finished Wednesday's trading at $95.80, an advance of $59.74 on the session. The stock also reached an intraday 52-week high of $111.99.
Standout Decliner
The fear of a potential bankruptcy triggered a mass investor exodus out of Carvana ( CVNA ), with the stock dropping 43%. This followed a cooperation agreement between the top creditors for the online car retailer, a move that raised red flags for Wall Street experts.
According to Bloomberg, Apollo and PIMCO, along with other large creditors, have reached the cooperation deal meant "to present a united front in restructuring negotiations."
In response to the headlines, Wedbush analyst Seth Basham said, "Combined with the fact that many CVNA bonds have been trading at ~50 cents on the dollar, indicating investors see a high probability of default, we view this news negatively for the CVNA shares."
Basham added: "We believe these developments indicate a higher likelihood of debt restructuring that could leave the equity worthless in a bankruptcy scenario (pre-packaged or otherwise), or highly diluted in a best case."
The latest developments sent CVNA crashing $2.88 to close at $3.83. The session also saw the stock hit an intraday 52-week low of $3.55. Overall, shares have plunged 98% in 2022.
Notable New High
Academy Sports and Outdoors ( ASO ) advanced in the wake of its latest earnings report, surging to a new 52-week high. With a better-than-expected quarterly profit and a strong outlook , shares of the sporting goods retailer rose 15%.
ASO issued a mixed report for Q3, with earnings that topped analysts' consensus, despite a sluggish revenue performance. The company saw its top-line total fall 6% from last year, with comparable sales that dropped 7.2%.
Looking ahead, ASO raised its full-year earnings forecast, saying it now expects adjusted EPS of $7.50 to $7.65. Previously, the firm was looking for a result between $6.75 and $7.50.
On the news, ASO soared $7.57 to close at $56.87. During the session, the stock also reached an intraday 52-week high of $57.57. For 2022 as a whole, shares have climbed nearly 29%.
Notable New Low
Disappointing quarterly results spurred selling in Smith & Wesson Brands ( SWBI ). Shares of the gun maker sank almost 20% to reach a new 52-week low.
With its Q2 results, SWBI missed expectations on both the top and bottom lines. This came as margins compressed and the company experienced a 48% sales decline
The massive drop in sales came as demand for firearms normalized after a spike last year. Meanwhile, the company also blamed a general consumer slowdown, fueled in part by high inflation and rising interest rates.
Dragged down by the results, SWBI slumped to an intraday 52-week low of $9.48. Shares ticked just off this mark before the close, concluding the session at $9.49, a decline of $2.31 on the day.
Wednesday's slide reversed gains posted over the past two and a half months, adding to weakness shown earlier in the year. The stock has fallen nearly 48% in 2022.
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Hot Stocks: CVNA crashes more than 40%; ASO jumps on earnings; SWBI drops; RXDX skyrockets on clinical data