Why Intercept Pharmaceuticals, Transocean, and U.S. Steel Slumped Today
The stock market finished with small losses on Thursday, with major benchmarks falling between 0.2% and 0.5% to pull back from their recent record run. Investors are working through uncertainties about the future course of the U.S. economy, and the biggest unknown is how the Federal Reserve is likely to respond to a mix of economic data in the near future. Most increasingly believe that an interest rate increase is coming before the end of 2017, and a shrinking of the central bank's balance sheet could finally test the staying power of the bull market. Also hurting sentiment was disappointing news from several companies, and Intercept Pharmaceuticals (NASDAQ: ICPT), Transocean (NYSE: RIG), and U.S. Steel (NYSE: X) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Intercept Pharmaceuticals lost about a quarter of their value after the U.S. Food and Drug Administration issued a warning about the company's Ocaliva treatment for liver disease. The FDA's warning stated that some patients are receiving incorrect doses of the drug, and that has the potential to boost the risk of liver damage that could lead to organ failure and even death. The move follows a similar letter that Intercept itself sent out with some of the same warnings, but investors appear to be taking the FDA letter more seriously. In the long run, Intercept hopes to overcome safety concerns, but shareholders don't seem entirely confident with Ocaliva's safety profile going forward.
Image source: Intercept Pharmaceuticals.
Source: Fool.com
