Hot Stocks: Cannabis rally; steel shares hit highs; NVDA leads chip stocks higher; COOK, KBH fall
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The major averages posted notable gains on Thursday, bouncing back from a bout of profit-taking in the previous session and consolidating the gains recorded during a recent recovery. The Nasdaq led the advance, climbing by 1.9%.
Semiconductor stocks helped lead the market higher. Nvidia (NASDAQ:NVDA) paced the big players in the sector, with Intel (NASDAQ:INTC) and AMD (AMD) also staging advances.
Steel stocks were among the winners as well. With the gains, Cleveland-Cliffs (CLF), Nucor (NUE) and U.S. Steel (X) all set new 52-week highs.
Thursday's rally also included the cannabis sector, which spiked on word that the U.S. House of Representatives will consider federal legalization. Tilray (TLRY), Canopy Growth (CGC), Aurora Cannabis (ACB) and Cronos (CRON) all benefited from the news.
Looking to the downside, shares of Traeger (COOK) endured a steep decline, as a weak outlook prompted a double-digit percentage slide. Earnings news also weighed on KB Home (KBH), which set a new 52-week low.
Sector In Focus
Renewed hope that the U.S. will legalize marijuana on the national level sparked gains in the cannabis sector. According to Marijuana Moment, the U.S. House of Representatives is preparing to vote on a bill that includes federal legalization.
Such legislation has passed the House before. In 2020, a bill cleared the lower house of the U.S. Congress but stalled in the Senate.
Based on renewed legislative action on the matter, several players in the cannabis space saw colossal gains. Tilray (TLRY) was among the best performers among the big names, climbing almost 22%.
Canopy Growth (CGC) and Aurora Cannabis (ACB) were other notable gainers, each climbing by about 11%. Cronos (CRON) advanced nearly 9%.
Standout Gainer
A general rally in the semiconductor sector bolstered shares of Nvidia (NVDA), which climbed nearly 10% on the session. The advance came a day after the firm's CEO said the company was considering using Intel's (INTC) foundry.
Thursday's advance also gave a lift to INTC. The stock climbed almost 7% on the session. Advanced Micro Devices (AMD) was another major industry player to see its shares rally, with the stock gaining nearly 6%.
Broadcom (AVGO) and Micron (MU) followed the sector higher as well, posting gains of 4.5% and 3%, respectively.
Standout Loser
Traeger (COOK) suffered a massive selling spree following the release of its quarterly report. While the grill maker's Q4 results beat expectations, a weak forecast prompted a nearly 12% decline.
The company beat expectations with its Q4 results, with revenue that rose 31% from last year. However, COOK provided a 2022 outlook that was far less bright than analysts had hoped.
The firm projected annual revenue between $800M and $850M. Analysts were looking for a figure above $950M.
COOK finished the day at $7.76, a decline of $1.04. The stock came public in a well-received IPO last July, pricing its offering at $18 per share.
With Thursday's slide, COOK reached a post-IPO low of $6.82. The stock is now nearly 57% below its IPO price.
Notable New High
Steel stocks jumped to new highs, as Russia's ongoing assault on Ukraine has raised continuing supply concerns. Cleveland-Cliffs (CLF), Nucor (NUE) and U.S. Steel (X) all added to recent gains to establish fresh peaks.
CLF advanced 12% to close at $32.67, setting a fresh intraday 52-week high of $32.90. Shares have more than doubled since late January.
NUE set a fresh peak as well, getting as high as $154.30 during the session. Ultimately, the stock closed at $153.52, rising 4% on the day. 
The list of new highs also included U.S. Steel (X), which rallied nearly 7%. The stock closed at $38.20 after setting an intraday 52-week high of $38.61.
Notable New Low
The release of disappointing earnings news sent KB Home (KBH) lower. Shares of the home builder dropped nearly 5% to reach a new 52-week low. 
The company reported a quarterly profit that missed expectations, as the number of home deliveries fell from both last year and the previous quarter. Revenue also came up short of projections, despite rising 23% to $1.4B.
Looking ahead, KBH held its housing revenue guidance steady at $7.2B-$7.6B, even as it raised its projection for average selling price to $490K-$500K.
KBH dropped $1.64 on the session to close at $34.38. During the day, shares reached an intraday 52-week low of $33.50.

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