Diamonds and Dogs
The British have invaded. British Petroleum (BP) is surging 5% to new 2016 high following better than expected earnings. BP and the rest of the oil industry are struggling with the low oil price, however the company was able to turn a profit in the quarter. Excluding one-time charges, BP reported a profit of $532 million, must higher than analysts' projections for a loss of $140 million. The company also mentioned they would maintain their dividend which is a sigh of relief to shareholders. The better than expected earnings came as a result of cost cuts. BP lowered its full-year capital spending target to $17 billion, down from a range between $17 billion and $19 billion, and noted that it could reduce it further to between $15 billion and $17 billion in 2017 if oil prices remain weak. Given the cost reductions, BP now expects to be able to balance its books with oil prices between $50 and $55 per barrel in 2017, down from $60 per barrel.
A sad day for Sarepta Therapeutics (SRPT) and anyone that suffers from Duchenne muscular dystrophy (DMD). The stock is down 25% to a new 52 week low after the FDA panel voted 6-7 against an endorsement of eteplirsen's ability to create dystrophin (the protein that Duchenne patients have trouble creating) on a level that would clinically benefit patients. A sad verdict as 52 speakers, many who are patients or family members of patients with muscular dystrophy, spoke out to plea the FDA to keep Sarepta's drug alive to keep working toward a cure.