California Approves New Pesticides; Manufacturer’s Stock More Than Doubles
Daily Stock Market Summary: Markets are opening the week up sharply, with prices swinging dramatically – but consistently upward. News that China and the US appear likely to avoid further trade conflict, for now, is boosting markets. Caterpillar (NYSE:CAT) and Boeing (NYSE:BA), two export giants widely traded as proxies for international commerce, are leading the way up during today’s trading.
It’s been a highly profitable market for NewsQuantifed users. As with last week’s Top Performers, this strong-earnings, high-volatility environment creates myriad opportunities for news-based traders. Strong earnings, a staple of the market’s recent bull-run, create even larger than usual market reactions in volatile times like these. With rising profits and rising interest rates, firms that can’t generate revenue growth in this market will face increasing cash flow pressure: this “culling of the herd,” as financing costs continue bubbling higher, puts even more pressure on capital to seek firms able to “grow past” rising interest rates.
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Today’s Top Performer: SenesTech (NASDAQ
SenesTech focuses on developing proprietary approaches to managing animal pest populations through population management. Today, they announced that the California Department of Pesticide Regulation (CDPR) has proposed to register SNES product ContraPest for approved-use in the state.
ContraPest employs a highly-palatable bait fluid featuring a compound designed to attack the reproductive capabilites of Norway rat and roof rats, two widely impactful pest species. The solution is designed to be effective either as part of an integrated pest control effort (eg. Used in conjunction with more traditional lethal rat poisions) or as a standalone, non-lethal pest control approach.
Investors are piling into the stock on the news (California is easily the largest market of any US state and employs some of the United States’ most stringent state-level environmental controls): it’s sitting up around 150% at the time of this writing. Today’s gains mark a welcome recovery for SNES, which has been declining since touching highs over $9.00 as recently as January, 2017.