Hot stocks: Rally of oil stocks; GT down 27%; Z, COOP increase on profits; BL hits low

Investors remained nervous on Friday amid lingering worries about rising interest rates and rising geopolitical tensions. As a result, the Nasdaq recorded down nearly 3% as the S&P 500 ended down nearly 2%.

As technology drove major stock averages lower, investors could find a safe haven in the oil sector. A surge in crude prices gave a boost to HollyFrontier (NYSE:HFC)Baker Hughes (NASDAQ: BKR)Western Oil (NYSE:OXY)Phillips 66 (NYSE:PSX) and Schlumberger (NYSE: SLB).

Zillow (NASDAQ:Z)(NASDAQ:ZG) also resisted the general negative sentiment. Shares jumped as the company released a strong earnings report, which showed higher-than-expected sales following the shutdown of its closed-house flipping business.

Earnings news also gave Mr Cooper a boost (NASDAQ:COOP)which hit a 52 week high with better than expected results.

As for some of the session’s most notable decliners, Goodyear Tire & Rubber (NASDAQ: GT) lost more than a quarter of its value despite the release of financial figures that theoretically beat expectations. A lingering inflation warning fueled the selling frenzy.

Meanwhile, a disappointing profit number sent BlackLine (NASDAQ:BL) falling to a new low of 52 weeks.

Focus on the sector

On a weak day for all markets, the oil sector provided a rare highlight. As crude prices continue their upward march, the group’s shares posted notable rallies during the day.

With rising tensions between Russia and Ukraine, crude prices jumped more than 4% to approach $95 a barrel. Based on this action, stocks in the oil sector rose.

HollyFrontier (HFC) was one of the standouts in the group, up 7%. Baker Hughes (BKR) and Occidental Petroleum (OXY) also showed notable strength, both up around 6%. Phillips 66 (PSX) and Schlumberger (SLB) both rose around 4%.

Outstanding Winner

Zillow (Z)(ZG) was able to exceed expectations with its latest earnings report as it successfully reduced inventory in its Zillow Offers unit. The stock rose about 13% on the news.

In November, Z announced that he would be closing his house flipping business Zillow Offers. The news sent the stock plummeting, with the downward momentum continuing into 2022. The stock fell from above $100 before revealing the move to a 52-week low of $44.80. .

In its latest results, the company reported revenue from the Zillow Offers unit of $3.34 billion, up from $301.7 million last year. As a result, Z recorded total revenue for the fiscal year of $3.88 billion.

On the news, Z climbed $6.61 on the session to close at $55.40. Even with the advance, the stock has only returned to levels last seen in mid-January.

Overall, the shares hit a 52-week high of $208.11 in February last year. Z remains 73% below this peak.

Outstanding Loser

The most impressive financial figures were not enough to save Goodyear Tire & Rubber (GT), which posted a massive loss after its quarterly update included an inflation warning. GT plunged 27% on the news.

On the surface, GT reported a strong fourth quarter, with earnings and revenue beating expectations. The company’s revenue increased 38% from a year ago to $5.05 billion.

However, in announcing its results, the firm predicted that it would see persistent inflationary pressures over the next few quarters.

“Looking ahead, we expect inflationary pressures to persist over the next few quarters,” CEO Richard Kramer said in the earnings release. “We remain focused on executing strategies to capture market value and manage our costs.”

GT posted a loss on the day of $5.96, ending the session at $15.78. The drop took the stock below a recent trading range and to its lowest close since August.

The shares had hit a 52-week high of $24.89 in November, although they approached their closing high as recently as mid-January.

Notable new peak

Mr Cooper (COOP) received significant buying interest after the mortgage lender reported strong earnings and revealed a new fintech investment. Shares jumped 19% to a new 52-week high.

COOP announced fourth quarter results that beat expectations as the company’s balance sheet was supported by record levels of capital and liquidity. The company also revealed that it took a stake in fintech Sagent in exchange for certain intellectual property rights.

COOP rose $7.94 to close at $49.22. Earlier in the session, the stock hit a 52-week intraday high of $49.82.

With that advance, stocks rallied above the top of a trading range that has held it since October. COOP has gained a total of 65% over the past 12 months.

New notable low

Despite stronger than expected revenue growth, BlackLine (BL) fell almost 16% after the release of a disappointing earnings figure, dragging the stock to a new 52-week low.

The accounting software provider reported fourth-quarter non-GAAP EPS of $0.08, below the $0.10 analysts had expected. Revenue exceeded forecasts, increasing 21% over last year to $115.3 million.

Looking ahead, the company has forecast a loss for the first quarter, with revenue expected to be between $119 million and $120 million.

BL ended the session at $76.73, a retreat of $14.40. With the decline, the stock also set a new 52-week low at $75.31.

While they had attempted to stabilize before the earnings report, stocks had steadily lost ground from the first half of November to the end of January. BL has lost around 42% of its value since those November levels.

To learn more about the biggest winners and losers on Wall Street, click on SA’s On The Move section.

Steve R. Hansen