Wall Street ended a two-day losing streak on Friday, as a late-day push allowed the major U.S. equity indices to finish a choppy session with gains. Amid a solid jobs report and an inverted yield curve, investors considered whether the rally that marked most of late March could resume in the near future.
While uncertainty marked most of Friday’s action, Chinese stocks were able to post unambiguous gains. The advance came on reports that Beijing authorities would approve more transparency for companies listed on U.S. markets.
On the news, DiDi Global (DIDI), KE Holdings (BEKE), Bilibili (BILI), Pinduoduo (PDD), JD.com (JD) and Alibaba (BABA) all finished higher.
Elsewhere, Sage Therapeutics (SAGE) represented another notable gainer on the session. Strong clinical trial data for an Alzheimer’s drug triggered a double-digit percentage gain in the stock.
Meanwhile, Tellurian (TELL) soared to a new 52-week high following an analyst’s upgrade.
Looking at some of the day’s standout decliners, BlackBerry (NYSE:BB) dropped following the release of a disappointing revenue figure. Quarterly results also prompted a massive sell-off in Blend Labs (BLND), which fell to a post-IPO low.
Sector In Focus
The ongoing odyssey related to the listing of Chinese stocks on U.S. markets took another turn, with a softening position from Beijing authorities prompting an advance.
Bloomberg reported that Chinese regulators are considering plans to hand over full access to companies’ audit reports to U.S. auditors. The move could happen as early as the middle of this year.
This comes as U.S. regulators have put added pressure on these companies, threatening to delist them if better transparency isn’t achieved.
The latest move allowed DiDi Global (DIDI) and KE Holdings (BEKE) to rise about 13% on the session. Bilibili (BILI) advanced 8%, while Pinduoduo (PDD) climbed 6%.
Among the biggest names, JD.com (JD) ended higher by 2%, while Alibaba (BABA) gave up most of its early gains to finish with a 1% advance.
Standout Gainer
Sage Therapeutics (SAGE) posted an advance of nearly 12% after the company reported strong results from a mid-stage study of its Alzheimer’s drug.
The company said a Phase 2 trial indicated improvement in Alzheimer’s patients with mild cognitive impairment and mild dementia in terms of executive performance and learning and memory.
SAGE climbed $3.90 to finish at $37. The advance continued a rise that has marked most of the past two weeks, taking shares off of a 52-week low of $30.48.
The stock has climbed about 21% since that low, although it remains well off its 52-week high of $81.
Standout Loser
The release of a mixed quarterly report sparked selling in BlackBerry (BB), which fell more than 9% on worries about the company’s transition.
The one-time mobile phone maker, which has moved to delivering IoT and security software, reported a Q4 profit, surprising analysts, who had expected the firm to post a loss.
However, BB reported an uninspiring revenue figure, with its top line dropping nearly 12% from last year. The company reported $11M of licensing revenue but said this total would be “minimal” going forward.
BB finished the day at $6.75, a decline of 71 cents on the day. The slide partially reversed gains posted in the second half of March, as the stock came off a 52-week low of $5.80.
Notable New High
Tellurian (TELL) surged on Friday following an analyst upgrade, capping off a volatile week of trading by reaching a 52-week high. Hope surrounding the firm’s Driftwood liquified natural gas project helped drive a 19% advance on the day.
Credit Suisse upgraded TELL to Buy, citing the promise of the Driftwood project. The firm also has an $8 price target, implying an upside of approximately 50% from Thursday’s closing level.
Bolstered by the bullish comment, TELL climbed $1.03 to close at $6.33. Shares also reached an intraday 52-week high of $6.54 during the session.
Last Friday, TELL popped 20% after President Joe Biden announced a plan to increase LNG exports to Europe, suggesting increased investment in the space. The stock returned some of these gains earlier this week, but Friday’s renewed rally allowed shares to push to a fresh high.
Notable New Low
Disappointing results and a weak forecast spurred an investor exodus out of Blend Labs (BLND). The stock dropped 16% to reach a new a post-IPO low.
The digital lending platform reported a quarterly loss that came in wider than analysts had projected. Revenue also failed to top expectations, even with a 164% annual growth rate.
Beyond the Q4 miss, the company also issued a discouraging forecast for Q1. The firm targeted revenue between $63M and $66M, below the $77M that analysts were predicting.
Hurt by the quarterly update, BLND declined 90 cents to finish at $4.80. Shares reached $4.45 during the day, their lowest level since coming public last July.
BLND priced its IPO at $18 per share, meaning it has lost about 73% from that point.
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