Lemonade Stock Gains, Arcturus Therapeutics Tumbles as Stock Market Rally Continues

Stocks were on the rise Tuesday after House Democrats passed a version of the fiscal stimulus bill that includes larger payments to households.

Futures on the Dow Jones Industrial Average rose 0.4%, S&P 500 futures gained 0.4%, and Nasdaq Composite futures advanced 0.4%.

Last week, President Trump had criticized the stimulus bill that had already passed both chambers of Congress, saying that direct payments to households should be $2,000, not $600. House Democrats jumped on the opportunity for heavier spending and the House has passed a version including $2,000 checks. The Republican-controlled Senate won’t vote on the bill. The bill would get cash to small businesses and households in need, preparing them for reopenings as Covid-19 vaccines are widely distributed.

Stocks have rallied on the belief that stimulus would get done in the lame-duck Presidential session, but now the cash build in households could be even greater, potentially creating even more pent-up demand.

Here were some notable stock movers:

Snap (SNAP) shares rose 4% after Goldman Sachs raised its price target to $70 from $47 and predicted a fourth-quarter earnings beat. The stock has had an impressive run this year, up 200% in 2020, not counting Tuesday’s move.

Continental Resources (CLR) rose 3%. Not only was the price of crude oil rising 1%, but Continental Resources got an upgrade at KeyBanc Capital Markets to Overweight from Sector Weight.

Arcturus Therapeutics (ARCT) fell 33%. The $2 billion market-cap biotech company, at least before Tuesday, reported Phase-1 Covid-19 trial data, and was downgraded to Neutral from Outperform at Baird, to Equal Weight from Overweight at Barclays, and to Market Perform from Outperform at Raymond James. The stock was up 170% since Nov. 9, when Pfizer (PFE) announced vaccine efficacy results.

Boeing (BA) has risen 1.3% as American Airlines (AAL) prepares the first 737 MAX flight since the planes were grounded following two crashes. American Airlines has gained 1.6%.

Lemonade (LMND) stock is up 3.6% as the lockup on its shares is set to expire Tuesday. The stock fell 14% on Monday.

Write to Jacob Sonenshine at jacob.sonenshine@barrons.com