Hot Stocks: Movie theater chains rally; YMM jumps on earnings; PAGS falls

Stocks pushed higher on Wednesday, helped by the release of the minutes from the last Federal Reserve meeting, which suggested that policymakers were considering slowing the pace of interest rate hikes. The advance, which built on gains posted the previous session, came ahead of the Thanksgiving holiday.

Movie theater chains participated in the upswing, bolstered by reports that Amazon (AMZN) planned a significant investment in theatrical releases in the coming years. The news boosted names like AMC Entertainment (AMC), Cinemark (CNK), IMAX (IMAX) and National CineMedia (NCMI).

The list of notable gainers also included Full Truck Alliance (NYSE:YMM), which posted a double-digit percentage gain on earnings news. BioMarin Pharmaceutical (BMRN) surged to a new 52-week high on a favorable regulatory development.

On the other side of the spectrum, PagSeguro (PAGS) posted a substantial decline after the release of its financial figures.

Sector In Focus

Reports of a big commitment from Amazon (AMZN) gave a boost to stocks related to the movie theater business. The news drove gains in AMC Entertainment (AMC), Cinemark (CNK), IMAX (IMAX) and National CineMedia (NCMI).

According to Bloomberg, AMZN plans to spend $1B a year to produce 12 to 15 movies for theatrical release each year. This will start with a smaller number in 2023 and build from there.

CNK rose almost 13% on the news, while IMAX advanced by 9%. AMC climbed 4%.

Standout Gainer

Street-beating earnings fueled a rally in Full Truck Alliance (YMM). The stock surged more than 13% on the news.

The digital freight platform reported a Q3 profit that more than doubled the amount that analysts had projected. Revenue growth also exceeded expectations, with the figure rising about 32% from last year.

Looking ahead, YMM predicted full-year revenue growth of 25.2% to 31.5%, compared to an expectation of 25%.

YMM finished Wednesday’s trading at $6.95, climbing 81 cents from the previous day’s close. With the advance, shares recovered some of their recent losses but remained off a multi-month high reached last week.

Standout Decliner

PagSeguro (PAGS) dropped in the wake of its quarterly results. With a disappointing revenue figure weighing on the stock, shares of the Brazil-based digital payments company dropped nearly 15% on the day.

PAGS reported Q3 revenue of $4.04B, an increase of 45% from last year. This came in short of analysts’ expectations.

Hurt by the financial figures, PAGS dropped $1.75 to close at $10.26. The decline extended a recent retreat, with the stock down about 24% for the past month. Shares also recorded their lowest close since July.

Notable New High

A favorable regulatory decision gave a lift to shares of BioMarin Pharmaceutical (BMRN), which climbed 7% to reach a new 52-week high.

The company reported that the U.S. Food and Drug Administration does not plan to hold an advisory committee meeting related to the firm’s gene therapy Roctavian as a treatment for severe hemophilia A.

On the news, BMRN surged to an intraday 52-week high of $99.74. Shares moderated a bit from there but still finished at $97.79, an advance of $19.01.

Wednesday’s gain added to a recent upswing. The stock has climbed about 21% since its close on Nov. 9. BMRN has seen choppy trading through 2022 and is now up about 9% for the year.

For more of the day’s biggest winners and losers, turn to Seeking Alpha’s On The Move section.