Philip Morris Gains Wiped Out in After-Hours Trading, Casting a Bearish Shadow on Monday’s Open
NEW YORK – Shares of Philip Morris International Inc. (PM) finished Friday’s regular trading session with a solid gain, but a sharp reversal in after-hours activity erased a significant portion of the advance, signaling potential weakness for the start of the new trading week.
The tobacco giant closed the official session at
1.72 or 0.96%. The day was characterized by bullish momentum, with the stock rallying from a low of $178.20 to an intraday high of $181.30, comfortably above the previous day’s close of $179.31.
However, the positive sentiment dissipated quickly after the 4:00 pm bell. In post-market trading, the stock took a significant downturn, falling
180.00. This late-day sell-off effectively wiped out more than half of the gains achieved during the regular session.
Market Outlook for Monday:
The dramatic reversal in after-hours trading is the most critical indicator for Monday’s open, and it points to a potentially bearish start.
Key factors suggesting a lower open on Monday include:
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Significant After-Hours Decline: A post-market drop of this magnitude often reflects a change in sentiment or late-breaking news and tends to carry over into the next trading session. The strong selling pressure after the close overrides the positive regular session performance.
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Psychological Level Breached: The drop back to the round number of $180.00 after closing above $181 suggests that the day’s upward momentum has been broken.
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Profit-Taking Signal: The late sell-off indicates that traders who bought during the day’s rally were quick to take profits, a sign of weak conviction in the upward move.
While Philip Morris showed strength during Friday’s main session, the substantial negative move in after-hours trading is a powerful bearish signal. Investors should be prepared for the likelihood of a lower open on Monday as the market digests this late-session reversal.
