SECURE | TRUSTWORTHY | RELIABLE

TRADING HIGHLIGHTS 

Good Week

Scholar Rock Holding (SRRK 23.07%) had jumped by more than 25.8%  It disclosed in a financial filing that one of its directors, a venture capital investor named Amir Nashat, had purchased upward of $5.87 million worth of the company's shares.  This means that there is a very good chance the biotech industry experts at Polaris Partners believe that Scholar Rock, which is one of their portfolio companies, is going to do something that makes its share price go way up.

Chevron (CVX 1.97%), has delivered impressive gains. Shares of the oil and gas giant are up more than 20%.  You don't have to be a rocket scientist to understand why these stocks and others in the energy sector are performing so well. Energy demand has increased significantly as the global economy emerges from the shadow of COVID-19, and Russia's invasion of Ukraine has disrupted the supply of oil and gas. A combination of higher demand and lower supply inevitably leads to higher prices.


Bad Week

Roblox (RBLX -1.46%) although the stock gained 28% compared to a 3.3% surge in the S&P 500. It only erased a small portion of recent losses for the digital entertainment platform. It remains lower by nearly 70% so far in 2022.  The metaverse entertainment specialist has attracted more buying interest as the stock price drops. That slump removes some of the risk around holding shares in this unprofitable business. Roblox's net losses grew to $500 million in 2021 from $266 million a year earlier. While that red ink should lesson over time, it has investors feeling nervous about the timing of that rebound.

Rivian Automotive (RIVN -3.49%) short-circuited Monday morning in response to a lowered price target from investment bank Mizuho.  By now, everyone is aware that curbs on freedom of movement in Shanghai, designed to halt the spread of Covid-19, have severely cut access to automotive parts and prevented Tesla's Chinese giga factory from operating at full capacity.  This also impacts parts shortages which isn't limited to Tesla but is affecting Rivian as well.

What Else Happened?

Big winners in the oil patch

It wasn't hard to see the impact that energy stocks had on the marke. Upward moves of 3% for ExxonMobil (XOM 2.32%) and 2% for Chevron (CVX 1.98%) showed that even the largest integrated oil companies benefited from favorable conditions to start the week.

Smaller exploration and production companies fared even better. Devon Energy (DVN 7.61%) climbed nearly 8% on Monday morning, while Marathon Oil (MRO 5.03%) posted a 6% gain. Among the tiniest names, Ranger Oil (NASDAQ: ROCC) picked up more than 12%, while Vermilion Energy (VET 11.90%) moved higher by 11%. Helping boost E&P companies was the rising price of crude oil, with West Texas Intermediate climbing nearly $2 per barrel to move above the $109 mark.

Other facets of the energy industry also contributed to overall gains. Among refinery companies, Valero Energy (VLO 7.99%) picked up more than 6% on the day, while H.F. Sinclair (DINO 6.63%) came close to matching that 6% rise. Phillips 66 (PSX 3.53%) managed a more modest 4% rise. Markets for refined products helped bolster the prospects for refiners, as both unleaded gasoline and diesel fuel remain at highly attractive levels compared to the cost of the crude that goes into making them.

Foreign energy stocks also added to the bullishness. Norway's Equinor (EQNR 4.89%) saw its stock rise by more than 5%, while South America's Petrobras (PBR 7.63%) saw shares gain more than 7%. Strength in foreign currencies compared to the U.S. dollar also likely played a small role in the gains in international energy company shares.