Hot Stocks: EV stocks see pressure, but TSLA climbs; LULU rises on earnings; DOCU drops
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Ongoing concerns ahead of next week's Federal Reserve meeting put pressure on stocks during Friday's trading. The S&P 500 slipped about 0.7%, its sixth decline in the past seven sessions.
Smaller electric vehicle makers were among the decliners on the session. Disappointing results from Li Auto contributed to weakness in XPeng (XPEV), Nio (NIO), Rivian (RIVN) and Polestar (PSNY). Tesla (TSLA) bucked this overall trend to finish the day higher.
Lululemon (NASDAQ:LULU) also showed a notable slide. Shares staged a double-digit percentage retreat, as guidance included in the firm's quarterly update failed to impress investors.
Looking at some of the day's standout gainers, DocuSign (DOCU) surged on better-than-expected earnings news. Meanwhile, Arcellx (ACLX) jumped to a new 52-week high after announcing a strategic partnership with a unit of Gilead Sciences (GILD).
Sector In Focus
Disappointing results from Li Auto put pressure on the overall EV sector. While industry heavyweight Tesla (TSLA) managed to post a gain for the session, its smaller competitors generally suffered setbacks.
LI dropped 12% after missing projections with its latest quarterly results. Following these lower-than-expected figures, fellow Chinese EV makers XPeng (XPEV) and Nio (NIO) both dropped as well, falling by about 7% and 6%, respectively.
Elsewhere, Rivian (RIVN) retreated almost 5%, while Polestar (PSNY) fell 2%. Lucid (LCID) cut early losses to finish the day flat.
Standout Gainer
DocuSign (DOCU) received a wave of buying interest following the release of its quarterly results. Shares of the digital signature company climbed 12% after topping projections with its Q3 results.
DOCU reported Q3 non-GAAP EPS of $0.57, topping analysts' consensus by more than a third. Revenue climbed 18% to almost $646M, also exceeding estimates.
The earnings news allowed DOCU to surge $5.41 to close at $49.16. Even with the upswing, the stock remains within a recent trading range, returning to a closing mark last seen at the start of the month. 
Looking longer-term, shares of the one-time pandemic darling have tumbled almost 69% for 2022.
Standout Decliner
A disappointing forecast sparked selling in shares of Lululemon (LULU). The stock dropped almost 13% on the news.
The athletic apparel maker beat expectations with its Q3 results, with revenue climbing 28% from last year. Gross margin edged up, while comparable sales at stores climbed 31% on a constant-currency basis.
However, the company's forecast failed to impress Wall Street, with analysts already projecting significant growth. LULU predicted Q4 revenue of $2.61B-$2.66B, compared to analysts' consensus of $2.66B.
Weighed down by its forecast, LULU dropped $48.12 to close at $326.39. The decline reversed some of the gains posted over the past couple of months, amid rising expectations for the retailer. Shares had reached a close of $385.99 on Dec. 2, its highest finish since April.
Notable New High
Arcellx (ACLX) rallied more than 29% after it reported a strategic pact with a unit of Gilead Sciences (GILD) for the development of CART-ddBCMA, a potential treatment of multiple myeloma.
Under the agreement, the companies will co-develop and co-commercialize CART-ddBCMA. ACLX will receive an upfront payment of $225M, as well as a $100M equity investment from Kite, a unit of GILD.
Based on the news, ACLX finished Friday's trading at $28.02, an advance of $6.34. During the session, the stock also reached an intraday 52-week high of $28.57. Overall, shares have jumped 67% in 2022.

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