Wall Street stormed out of the gate on the first day of trading in the Thanksgiving-shortened holiday weekend. A large number fell on Monday, weighed down by new COVID restrictions in China.
Issues that the Chinese government had he has taken steps to reduce the spread of the virus that is burdened in the stocks linked to the country. This led to the decline of names like Alibaba (FATHER), Weibo (WB), Bible (HE WAS) and Pinduoduo (PDD).
Elsewhere, Tesla (TSLA) was also hit by the COVID news. Concerns about potential delays sent shares of Elon Musk’s EV maker to a new 52-week low.
Looking to the upside, Sotera Health (SHC) raised its share price by one-third following a consensus decision. Elsewhere, shares of Imago BioSciences (NASDAQ: IMGO) doubled after agreeing to be acquired by Merck (MRK).
Sector In Focus
The introduction of new COVID restrictions in China led to a sell-off in stocks related to the region. Alibaba (BABA) and Weibo (WB) both fell 4%.
Elsewhere in the sector, Bilibili (BILI) fell more than 8%, while Pinduoduo (PDD) fell more than 3%.
This came as Chinese authorities reinstated some of the COVID-19 restrictions due to thousands of cases of the disease. This includes three deaths – the first deaths in China from the virus since May.
The official win sent Sotera Health (SHC) higher, with the stock up nearly 33%.
This came after a jury found that the company’s Sterigenics product was not suitable for women’s cancer. The order was part of several lawsuits alleging that Sterigenics’ Willowbrook plant caused cancer and other illnesses.
“This is a major win for SHC, and investors now have a second piece of data that provides a more comprehensive picture of the various possible outcomes of these cases,” said KeyBanc analyst Matthew Mishan.
SHC surged early in Monday’s session, at one point rising nearly 60%. Shares fluctuated from there but eventually finished at $8.00. This represented a gain of $1.98 from the previous day’s close.
Famous New High
Imago BioSciences ( IMGO ) soared in the biotech market after announcing it had agreed to be acquired by Merck ( MRK ) for an estimated $1.35B. Shares surged nearly 105% on the news, marking a new 52-week high.
Under the deal, shareholders in IMGO, which focuses on orthopedics, will receive $36 per share in cash. The project is expected to close in Q1.
IMGO ended at $35.59, up $18.19 on the day. Shares also hit a 52-week high of $35.75. MRK rose by about 1%.
Popular New Low
With new COVID restrictions in China threatening production, Tesla (TSLA) extended recent weakness and fell another 7%. The move sent shares of Elon Musk’s EV maker to a new 52-week low.
TSLA fell $12.32 to close at $167.87. During the session, the stock also reached an intraday 52-week low of $167.54.
Monday’s slide marked the fourth consecutive day of declines and the fifth decline in the past six quarters. The stock is down about 14% in the last week.
Taking a long-term view, TSLA is down 48% during 2022. The stock is coming off a 52-week high of $402.67 set late last year.
For more on the day’s biggest winners and losers, visit Searching Alpha’s On The Move section.