As US markets plunged, these 2 stocks hit all-time highs

Some companies can stand up to tough conditions on Wall Street.

| More on:
a young girl has a wide eyed look with pursed lips as though saying 'ooh' as if receiving interesting news or a juicy piece of gossip.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Investors lost confidence in the stock market on Tuesday, responding negatively to inflation readings for August that were higher than most had expected. By the end of the day, the Dow Jones Industrial Average (DJINDICES: ^DJI) had registered one of its largest daily point drops in its history, and the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) were down even more sharply on a percentage basis.

IndexDaily Percentage ChangeDaily Point Change
Dow(3.94%)(1,276)
S&P 500(4.32%)(178)
Nasdaq(5.16%)(633)

Data source: Yahoo! Finance.

All 30 Dow stocks were down, and just five stocks out of the S&P 500 managed to eke out gains on the day. Yet there were a couple of companies whose shares not only managed to move higher but also set new all-time highs. Below, you'll learn more about why Albemarle Corporation (NYSE: ALB) and Catalyst Pharmaceuticals, Inc. (NASDAQ: CPRX) bucked the big downward move on Wall Street and moved further into record territory.

Albemarle keeps charging up

Albemarle ended the day up just a fraction of a percent after having climbed as much as 3.5% above its closing level on Monday. Fundamentally, though, the specialty chemical company continued to benefit from high demand for some of its most important material products.

Historically, Albemarle has played a key role in the energy and industrial sectors. Its bromine-related products are used in applications ranging from oilfield drilling to food safety and water treatment. Its catalysts business helps refining and petrochemical companies process heavy oil and produce cleaner fuels, while also serving customers in the electronics and pharmaceutical markets.

Lately, though, investors know Albemarle best for its exposure to the lithium market. In the second quarter of 2022, Albemarle saw revenue nearly double from year-ago levels, with earnings coming close to quadrupling year over year. Although strong conditions in the bromine business provided a boost, lithium was the biggest factor, driven by high demand from the electric vehicle sector.

The trend toward EV adoption looks like it'll take years to play out, and as long as battery technology relies on lithium, Albemarle can expect demand to remain high. That should play to Albemarle's strengths and keep shares strong over the long run.

A big winner for Catalyst

Catalyst Pharmaceuticals climbed about 1% on Tuesday, although it had been up more than 13% earlier in the day. The company's primary treatment has done well, and Catalyst got a vote of confidence from index managers at S&P Dow Jones Indices.

Catalyst's stock has been on the rise as sales of its Firdapse drug for treating the rare disease Lambert-Eaton myasthenic syndrome have climbed sharply. That has put Catalyst in the enviable position of having positive cash flow, which is a rare thing for a small biopharmaceutical company and makes it possible for the company to fund development of new pipeline treatments without resorting to expensive capital-raising activities.

S&P Dow Jones Indices announced late Monday that Catalyst would become a member of the S&P SmallCap 600 index effective before the market opens on Thursday, Sept. 15. The company replaces ManTech International, which is set to go private in an acquisition that should close in the near future.

Becoming a part of a stock index doesn't have any impact on Catalyst's fundamental business, but it does raise awareness of the drugmaker and its prospects for further growth. Shareholders now hope that Catalyst can keep executing well and make the most of its opportunity in Firdapse while also adding more approved drugs to its product lineup in the years to come.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on International Stock News

A man looking at his laptop and thinking.
International Stock News

Why Alphabet stock was sliding today

Let's take a look.

Read more »

A man looking at his laptop and thinking.
International Stock News

Nvidia's stock was down despite its amazing earnings. Here's what history says is coming next

Although it might seem to defy logic, it's not an uncommon phenomenon.

Read more »

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
International Stock News

Nvidia share price slips despite 94% revenue growth

Q3 earnings beat expectations, but what about guidance?

Read more »

high, climbing, record high
International Stock News

Could the S&P 500 Index hit 6,500 by the end of 2025?

Could the index climb higher?

Read more »

a small child holds his chin with his head on the side in a serious thinking pose against a background of graphic question marks and a yellow lightbulb.
International Stock News

Is it too late to buy Nvidia shares?

Is Nvidia stock a buy ahead of its third-quarter earnings report tomorrow?

Read more »

a group of people stand examining a large glowing cystral ball held in the hands of one of the group members while the others regard it with various expressions of wonder, curiousity and scepticism.
International Stock News

Here's what to expect from Nvidia on November 20

Can Nvidia score another win?

Read more »

Two people lazing in deck chairs on a beautiful sandy beach through their hands up in the air.
International Stock News

2 no-brainer Warren Buffett stocks to buy right now

While replicating Buffett's success isn't possible, there are a handful of his investments that are no-brainer buys.

Read more »

A man with a beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.
International Stock News

3 reasons to buy Nvidia stock before November 20

This week marks a big moment for tech investors as perhaps the most anticipated earnings of the year will be…

Read more »