Hot stocks: EV rally shares; VALN jumps on investments in PFE; ACAD, ODP fall to a 52-week low

Demand for bargains following last week’s massive sell-off led to a sharp rise in major US stock indices on Tuesday. While fears of a possible recession persisted, the Nasdaq and S&P 500 reported gains of about 2.5%.

The space for electric vehicles was one of the leaders in the upward direction. This destroyed sector received a wave of buying in weak markets, with names like Tesla (TSLA), Li Auto (LI), Rivian Automotive (RIVN), Lucid Group (LCID) and Nio (NIO) showing strength.

Valneva (NASDAQ: VALN) is another excellent winner of the session. The French vaccine maker has almost doubled in value after receiving a major investment from Pfizer (PFE).

Looking at some of the remarkable declines of the day, Acadia (ACAD) lost nearly a third of its value after facing a potential barrier to an extended label for one of its drugs. Office Depot owner ODP Corporation (ODP) also lost ground after its board decided not to move forward with the company’s dissolution plan.

Sector of focus

The stock market recovery on Tuesday had a huge impact on the electric vehicle sector. Investors have rallied in the space after a sharp withdrawal in recent weeks.

Meanwhile, stocks benefited from a short-term catalyst including Li Auto (LI), which jumped nearly 8% after the announcement of a new SUV model. At the same time, the sector received a boost from Citi’s higher price targets.

As part of the rally, the Tesla Heavyweight (TSLA) has made significant progress. Shares of Elon Musk-led electric car maker jumped 9 percent to $ 711.11. Shares hit a 52-week low of $ 615.50 in late May.

Elsewhere in the Rivian Automotive sector (RIVN), it rose 11%, while the Lucid Group (LCID) rose almost 8%. Nio (NIO) advanced by about 9%.

Excellent gainer

VALN jumped more than 90% after drugmaker Pfizer (PFE) took a significant stake in French vaccine maker. This move signals the expansion of cooperation between Lyme vaccine companies.

Under the new deal, PFE will buy an 8.1% stake in VALN, an investment of $ 95 million. This is followed by a cooperation agreement signed in 2020 for VLA15, which is due to be tested later this year.

Supported by PFE’s interest, VALN jumped $ 12.77 to $ 26.48. The rally reversed losses earlier in the month, with the stock hit a 52-week low of $ 13.71 last week.

Excellent loser

Acadia (ACAD) fell after a regulatory decline, falling 33% during the day.

The decline came after a group advising the US Food and Drug Administration voted against extending the label for the antipsychotic therapy company pimavanserin. The biotechnologist wanted to use the drug to treat hallucinations and delusions associated with Alzheimer’s disease.

The drug is already approved by the FDA for use in the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis.

ACAD ended trading at $ 13.01 on Tuesday, down $ 6.50 per session. Shares also hit a 52-week low of $ 12.24 during the day, reversing the recovery experience the shares had seen in the previous month.

Noticeable new low level

The news that the company has decided to cancel a planned plan to sell its consumer business has spurred sales to The ODP Corporation (ODP). Shares of Office Depot and OfficeMax brand retailers for office supplies fell 14% to a new low of 52 weeks.

ODP has revealed that its board of directors has unanimously decided to keep the consumer business for now. Meanwhile, the board also decided that the company would not pursue a pre-announced spin-off, attributing the decision to market and macroeconomic conditions.

The office supplies retailer has left open the possibility of restarting its disintegration plan in the future.

Injured by the decision, ODP gave $ 4.75 to $ 30.25. During the session, the shares reached a 52-week low during the day of $ 29.51.

The slide added to the recent stock weakness. ODP has fallen 22% in the last month and lost nearly 36% in value in the last year.

For more of the best and worst performance of the day, head to the Seeking Alpha on the Go section.

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