Hot Stocks: Gig economy selloff; analyst sparks gain in AMGN; DICE soars on clinical data; LEG drops
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A late swoon prompted by fear related to the U.K. bond market left the Nasdaq and S&P 500 lower for the fifth consecutive session on Tuesday. The Dow gave up most of its early gains but still finished in positive territory.
Among the decliners on the session, gig-economy stocks dropped on worries about stepped-up regulation. Uber (UBER), Lyft (LYFT) and DoorDash (DASH) all ended lower.
Leggett & Platt (LEG) represented another standout to the downside. A lowered forecast sent the stock to a new 52-week low.
Looking to the upside, Amgen (NASDAQ:AMGN) rallied on an analyst comment, while DICE Therapeutics (DICE) jumped to a 52-week high on clinical trial data.
Sector In Focus
Regulatory concerns prompted selling in gig-economy stalwarts like Uber (UBER) and Lyft (LYFT). The slides came as the Biden administration proposed policy changes that could lead to gig workers becoming full-time employees.
âWhile independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors,â Labor Secretary Marty Walsh, said in a statement. âMisclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages.â
On the news, UBER dropped about 10%, while LYFT fell about 12%. DoorDash (DASH) also fell, retreating about 6%.
Standout Gainer
Amgen (AMGN) received a boost from a bullish analyst comment, sending the stock higher by almost 6%.
Morgan Stanley gave an upbeat assessment of the company's AMG133 product, a potential obesity treatment. Analyst Matthew Harrison argued that upcoming data about the drug could be the first step on the way to a multi-billion-dollar product.
Helped by the analyst note, AMGN rallied $13.29 to close at $245.44. The advance helped the stock recover more of the losses it posted in the first half of September, when the company's pipeline hit some stumbling blocks.
Overall, shares have seen choppy action in 2022, although the stock remains positive for the year. AMGN is currently up about 8% since the close of 2021, compared to sharp declines in the overall market.
Notable New High
The release of clinical trial data prompted a massive surge in shares of DICE Therapeutics (DICE). The stock skyrocketed 62% to reach a new 52-week high.
The company revealed results from a Phase 1 trial of its DC-806 product in psoriasis. The drug candidate met its proof-of-concept goal in the study.
DICE finished Tuesday's action at $40, a gain of $15.35 on the day. Shares also set a new intraday 52-week high of $45.99.
Notable New Low
Leggett & Platt (LEG) lost ground after the firm lowered its forecast for the full year. Shares of the engineered components products maker dropped 7% on the news.
LEG predicted EPS between $2.30 and $2.45. This was below its previous forecast of $2.65 and $2.80. Analysts were looking for a figure of around $2.71.
The firm also issued a disappointing revenue forecast, saying it sees a total of $5.1B to $5.2B. The consensus of market experts targeted a total of around $5.3B.
Dragged down by the forecast, LEG dropped $2.50 to close at $32.17. This added to a general downtrend that has marked most of the past two months. During the session, shares also touched an intraday 52-week low of $30.28.

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