Market News: Continental Resources, Kinder Morgan, Alkermes

The stock markets in the United States and Europe rebounded after a selloff that wiped out trillions of dollars in asset values yesterday.

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Today, the statement of European Central Bank (ECB) President Mario Draghi promised to implement additional measures, if necessary, to help stabilize the financial markets.

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During a press conference, Draghi noted that the central banks’ stimulus since June 2014 “strengthened the euro area’s resilience to the recent global economic shocks.” He added that the central bank’s annual inflation rate this year will probably significantly below the estimates last month due to the impact of declining oil prices.

Mr. Draghi said, “We will review and therefore possibly reconsider our monetary policy stance at our next meeting in March.” He also noted that the European economy’s downside risks increased due to the volatility in the global financial and commodity markets, which are related to concerns regarding China’s economy and the exchange rate of yuan.


“We are not surrendering in front of these global factors. We will confirm our determination to continue to comply with our mandate even in the face of adverse developments,” said Mr. Draghi.

On the other hand, China’s Vice President Li Yuanchao stated that they have no intention to devalue the yuan. According to him, “The fluctuations in the currency market are a result of market forces, and the Chinese government has no intention and no policy to devalue its currency.”

Meanwhile, crude oil prices climbed after dropping to its lowest level in more than 12 years. The WTI crude increased 4.83% to $29.72 per barrel, and the Brent crude went up 5.7% to $29.47 a barrel.

Gennadily Goldberg, an interest rate strategist at TD Securities, told Reuters, “The underlying focus is still on oil because people are looking at the transmission mechanism to the real economy of lower oil prices.”

U.S. Markets

  • Dow Jones Industrial Average (DJIA) – 15, 882.68 (+0.74%)
  • S&P 500- 1,868.99 (+0.52%)
  • NASDAQ- 4,472.06 (+0.01%)
  • Russell 2000- 999.98 (+0.07%)

European Markets

  • EURO STOXX 50 Price EUR- 2,943.92 (+2.13%)
  • FTSE 100 Index- 5,773.79 (+1.77%)
  • Deutsche Borse AG German Stock Index DAX- 9,574.16 (+1.94%)

Asia-Pacific Markets

  • Nikkei 225- 16,017.26 (-2.43%)
  • Hong Kong Hang Seng Index- 18,542.15 (-1.82%)
  • Shanghai Shenzhen CSI 300 Index- 3,081.35 (-2.93%)

Stocks in Focus

The stock price of Continental Resources surged more than 16% to $18.61 per share. Analysts covering the stock have a consensus 52-week price target of $33.94 per share. The highest price target is $50 per share. The company’s CEO Harold Hamm recently suggested that the oil prices will increase to $60 per barrel by the end of the year.

Kinder Morgan gained more than 15$ to $13.87 per share. The company reported $1.23 billion in distributable cash for the fourth quarter despite the declining oil prices. Investors were pleased with the company move to reduce its 2016 capital budget and quarterly dividend.

Alkermes Plc plummeted more than 44% to $33.71 per share. The company announced that the late-stage trial for its depression drug, ALKS 5461 failed to meet the pre-specified primary efficacy endpoints.