Stocks finished lower again on Tuesday, as worries about higher interest rates continued to weigh on the market. With the retreat, the Nasdaq posted losses for the seventh consecutive session.
Amid the overall weakness, Digital World Acquisition (DWAC) posted a notable decline, weighed down by concerns the SPAC would not be able to complete its merger deal with Donald Trump’s media company.
Elsewhere, Scotts Miracle-Gro (NYSE:SMG) pushed further lower, adding to recent weakness and setting a new 52-week low.
Turning to some of the day’s standout gainers, Iveric bio (ISEE) expanded its value by nearly two-thirds following the release of strong clinical data. Meanwhile, Frontline (FRO) rode an analyst’s upgrade to a new high.
Standout Gainer
Iveric bio (ISEE) surged on news that its Ziroduct met the main goal of a late-stage trial in an eye disease called geographic atrophy. The stock jumped 66% on the news.
ISEE ended Tuesday’s action at $15.70, an advance of $6.26 on the day. With the gain, the stock recorded its highest close since late April.
The recent upswing allowed the stock to regain a share of the losses it posted in April and May. The stock is now up 3% over the past six months, although it remains 5% lower for 2022 as a whole.
Standout Decliner
Digital World Acquisition (DWAC), the SPAC slated to take Donald Trump’s media company public, dropped 11% following reports that the firm does not have enough shareholder votes to extend its deal with Trump’s social media firm.
Shares dropped $2.86 to close at $22.13 — its lowest finish of 2022. Overall, DWAC has dropped 73% in the past six months amid concerns that its deal with Trump won’t eventually go through.
Meanwhile, DWAC edged higher in Tuesday’s after-hours trading, regaining some of the losses it posted during the session. The post-market recovery came after the SPAC’s sponsor, ARC Global Investments II, said it would take steps to extend the deal deadline if it doesn’t receive the votes needed for an extension later this week.
Notable New High
Frontline (FRO) rallied to a 52-week high amid a bullish comment from Jefferies about the oil tanker sector. The stock climbed about 9%, joining notable moves from Nordic American Tanker (NAT), Euronav (EURN) and Tsakos Energy (TNP).
Jefferies upgraded its rating on FRO to Buy from Hold, saying tankers will benefit from overall tightness in the oil market.
“With both crude and product tanker rates at healthy levels, the sector is primed for a meaningful move higher in the coming months even after yesterday’s OPEC+ agreement to cut supplies,” analyst Omar Nokta wrote.
FRO finished at $12.99, an advance of $1.07 on the day. During the session, the stock reached an intraday 52-week high of $13.04. Longer-term, FRO has surged 72% for 2022.
Meanwhile, NAT climbed 10% on the day, while EURN rose 9% and TNP advanced 4%.
Notable New Low
Scotts Miracle-Gro (SMG) pushed further lower, dropping another 5% to reach a new 52-week low. The slide added to a downdraft that has marked the last few weeks, weighed down by the announcement in late August that the firm was cutting its free cash flow guidance.
The maker of pesticides and other lawn and garden products slumped to an intraday 52-week low of $55.97. Shares retraced some of their losses late in the session, eventually finishing at $57.91. This represented a slide of $3.27 on the day.
Tuesday’s decline extended weakness seen over the last several weeks, marking its 13th lower finish in the last 14 sessions.
In late August, SMG cut its free cash flow guidance, saying it now expected a loss of $275M-$325M. Previously, the firm had predicted a cash flow loss of $150M. At the same time, SMG revealed the departure of its CFO.
For more on the day’s biggest winners and losers, click over to Seeking Alpha’s On The Move section.
