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- Former President Donald Trump stepped back into the spotlight Thursday, headlining a SPAC deal that will take his new media company public. The vehicle for the transaction, Digital World Acquisition Corp. (NASDAQ:DWAC), more than quadrupled on the news.
- Turning from a newcomer in the media space to one of the sector's most dominant players, Netflix (NASDAQ:NFLX) shook off a post-earnings hangover to renew its upward momentum and reach a new 52-week high.
- Looking to some of the day's biggest losers, U.S.-listed Brazilian stocks suffered a widespread sell-off during the session. A nasty political climate in the country and a pessimistic outlook for Vale (NYSE:VALE) weighed on the sector.
- Petrobras (NYSE:PBR), Ambev (NYSE:ABEV) and Banco Santander (NYSE:BSBR) all participated in the retreat. Cosan (NYSE:CSAN) also fell, dropping to a new low.
- Elsewhere, Kaiser Aluminum (NASDAQ:KALU) was another major loser on Thursday. A weak earnings report sparked a double-digit percentage slide.
Sector In Focus
- Growing political tension in Brasília and concerns about the growth prospects of one of the country's biggest companies dragged Brazilian stocks lower on Thursday.
- This added to woes that have impacted the country's stocks throughout the year, creating the world's worst-performing equity market in 2021.
- On Wednesday, a group of Brazilian senators proposed that Jair Bolsonaro, the country's president, be charged with crimes against humanity for his "reckless" response to the pandemic.
- Meanwhile, Brazilian metals and mining company Vale (VALE) suffered a double downgrade from RBC Capital. The firm slashed its opinion on the stock from Outperform to Underperform, citing the potential impact from China's "economic rebalancing."
- VALE dropped nearly 4% on Thursday to finish at $13.34. This was its lowest close since November 2020.
- With the mounting political tensions in the country, the selling spread to other high-profile Brazilian names. Petrobras (PBR) dropped nearly 6%. Ambev (ABEV) and Banco Santander (BSBR) both fell more than 3%.
Standout Gainer
- A media and social networking firm fronted by former President Donald Trump signed a SPAC deal on Thursday, sparking a more than 350% jump in shares of Digital World Acquisition (DWAC).
- DWAC inked a deal to take Trump Media & Technology Group public. TMTG is a new company created by the former president to contain a social media platform, as well as a subscription video service and podcast network.
- On the news, DWAC surged $35.55 on the day to close at $45.50.
Standout Loser
- Kaiser Aluminum (KALU) reported a Q3 profit that was less than half the amount predicted by market analysts. The company's profit also missed projections, despite nearly tripling from last year with a figure of $750.6M.
- KALU blamed the disappointing figures on higher costs and labor shortages. Supply chain disruptions also cut into its results, the firm said.
- Looking ahead, the company gave an adjusted EBITDA forecast for Q4 that was below analysts' consensus.
- The combined impact of the weak earnings and the pessimistic forecast sent the stock tumbling more than 10% on Thursday. Shares closed at $102.04, a decline of $11.95.
- The slide reversed a recent tick higher, taking KALU below support and to their lowest level since February.
Notable New High
- Netflix (NFLX) bounced back from an earnings-related bout of profit-taking, climbing nearly 4.5% on Thursday to set a new 52-week high.
- NFLX reported its quarterly results late Tuesday, revealing a better-than-expected profit. The company also topped its subscriber forecast, adding more than 4M users during the quarter.
- Still, shares slipped on Wednesday, as trading booked profits after a three-month upswing.
- Thursday saw a return of buying interest. Amid data showing that its popular Squid Game series recorded 1.9B minutes streamed in the most recent weekly ratings, NFLX added $144.38 on the session, rising to $653.16.
- With the advance, NFLX also set a new intraday 52-week high of $654.01.
Notable New Low
- Brazilian conglomerate Cosan (CSAN) suffered from the general sell-off of the country's U.S.-listed companies. The stock dropped 6% on the session, falling to a new low.
- CSAN dropped $1.01 on the day to end at $14.89. This was off an intraday low of $14.54 set late in the session.
- In March, the producer of such products as sugar and ethanol conducted a restructuring. Under the process, the firm's financial unit, which traded under the ticker "CZZ," was incorporated into the broader company.
- As a result of that process, shares of the overall company began trading on the NYSE under the "CSAN" ticker. Thursday's decline took the stock to its lowest level since the switch.
- For more on the day's biggest winners and losers, turn to SA's dynamic On The Move section.