Thursday’s biggest S&P 500 gainers
5 hours 55 minutes ago
refuser
Stock prices of medical insurance companies fell after industry giant Elevance Health (ELV) reported lower-than-expected profits in the third quarter and lowered its full-year outlook. The company attributed the shortfall to a decline in Medicaid enrollment due to eligibility redetermination and other changes. Elevance stock fell 10.6%, with losses spread to other health insurance stocks with exposure to Medicaid. Molina Healthcare (MOH) stock plunged 12.6%, the biggest decline in the S&P 500, while Centene (CNC) stock also fell 9.1%. CSX (CSX) stock fell 6.7% after the freight forwarder’s quarterly revenue and profit fell short of analysts’ expectations. Hurricanes Helen and Milton weighed on the company’s results, while lower coal revenues and lower fuel prices also curtailed profits.
progressive
Shares of Snap-on (SNA), which provides tools and equipment for professional users in a variety of industries, jumped 10% to become the best performer on the S&P 500 on Thursday. The rise came after Snap-on released its third-quarter financial results. The company is in line with analyst revenue estimates, but beat earnings per share (EPS) estimates. Snap-on, whose largest division sells tools and services to auto repair shops, posted 4% quarter-over-quarter sales growth, suggesting a potential turnaround in this key market. Travelers Companies (TRV) stock rose 9% after the insurance company’s third-quarter earnings report. Despite higher year-over-year catastrophe losses from Hurricane Helen and other severe weather events, Travelers more than tripled its net income year-over-year due to higher insurance premiums and higher investment income. The company also reported an improvement in its consolidated combined ratio, a key measure of an insurance company’s profitability. Investment management company Blackstone (BX) reported better-than-expected profits in the third quarter as assets under management increased, sending its stock price up 6.3%. Blackstone’s CEO noted that the company invested or committed more than $54 billion in the quarter, the most in more than two years. Blackstone’s overall fund gains during the quarter also reached their strongest level in three years.
-Michael Blomberg
Expedia shares soar on report that Uber is considering acquisition
7 hours 40 minutes ago
Expedia (EXPE) shares rose, but Uber Technologies (UBER) shares fell on Thursday morning after a report in the Financial Times that the ride-hailing giant was considering acquiring the travel reservation company. did.
Citing “three people familiar with the process,” the FT reported that a third party brought the idea to Uber, which has not yet made a formal approach or offer to Expedia. .
Uber and Expedia did not immediately respond to Investopedia’s requests for comment. On Thursday afternoon, Expedia shares were up 5%, while Uber shares were down 2%.
Acquiring Expedia, which operates the eponymous platform along with brands such as Hotels.com and Vrbo, will help Uber expand its travel booking efforts as it aims to transform into a “super app,” according to FT. reported.
During Uber’s second-quarter earnings call in August, Chief Financial Officer Prashanth Mahendra-Raja said investing in growth “through acquisition opportunities that align with our strategy” remains Uber’s “top priority.” “This is a matter of concern.”
-Aaron McDade
Assets under management soar, Blackstone stock hits record high
8 hours 32 minutes ago
Blackstone (BX) stock soared to an all-time high on Thursday after the world’s largest alternative asset manager reported a jump in profits as it attracted more investment. .
Net income for the third quarter was $780.8 million, or $1.02 per share, an increase of 41.5% from the same period last year. Revenue from management and advisory fees increased 8.4% to $1.79 billion.
Blackstone’s assets under management (AUM) rose 9.9% to $1.11 trillion, beating analyst expectations, and total inflows for the quarter were $40.5 billion. Blackstone’s credit and insurance division led the gains, with $21.4 billion in inflows.
Blackstone shares rose about 7% in Thursday afternoon trading to more than $170 a share, up nearly a third of its 2024 year-to-date value.
-Bill McCall
What does Wall Street think about Netflix stock, which is ahead of its earnings?
9 hours 34 minutes ago
Netflix (NFLX) earnings will be released after the bell on Thursday, and while analysts are generally bullish on the company’s stock, they aren’t looking for a significant price increase at this time.
Of the 20 analysts covering Netflix tracked by Visible Alpha, 15 rate the stock a “buy.” There is only one “sell” rating.
The consensus price target is $732.26, representing a roughly 4% premium to Wednesday’s closing price of $702. The target price used to determine that average ranges from $550 to $820.
Analysts expect the streaming giant to post year-over-year revenue, profit and subscriber growth into the final quarter of 2024. Netflix stock fell following the company’s quarterly reports in April and July.
The stock was down about 1% Thursday afternoon, but has risen more than 40% so far this year.
-Andrew Kessel
TSMC’s results show strong AI demand, boosting chip stocks
10 hours 43 minutes ago
Chip stocks rose on Thursday after Taiwan Semiconductor Manufacturing (TSM), the world’s largest contract chipmaker, reinvigorated Wall Street’s AI enthusiasm with better-than-expected quarterly results and a rosy financial outlook. .
On Thursday morning, the PHLX Semiconductor Index (SOX) rose about 2%, led by TSMC, and rose 12%. Broadcom (AVGO) stock rose more than 3%, and chip designer Nvidia (NVDA) and chip designer Arm Holdings (ARM), which are at the center of the AI boom, also rose 2%.
TSMC announced Thursday morning that its third-quarter net profit rose more than 50%, far exceeding Wall Street expectations. CFO Wendell Huang said of the company’s performance, “Smartphone and AI-related demand is strong.” CEO CC Wei estimated that the contribution of AI processor sales to TSMC’s total revenue will triple this year.
The results highlight the divergent fortunes of companies within the broader semiconductor industry. Christoph Fouquet, CEO of Dutch semiconductor manufacturing equipment maker ASML Holding (ASML), said earlier this week that while the AI sector continues to see strong developments and upside potential, Recovery is taking time.”
ASML’s warning sparked a sell-off in semiconductors, with the SOX index falling more than 5% on Tuesday. Despite Thursday’s TSMC-led rally, the index remained 3% below Monday’s close.
Euro depreciates as ECB cuts interest rates amid economic downturn
11 hours 40 minutes ago
The euro fell against the US dollar on Thursday after the European Central Bank (ECB) cut interest rates for the third time this year, as the world’s third-largest economy shows signs of decline.
The ECB on Thursday cut its policy interest rate from 3.5% to 3.25%, following a similar cut at its previous meeting in September. The euro fell 0.2% against the dollar.
“Inflation is expected to rise in the coming months and fall below target by the end of next year,” the ECB said in a statement.
The interest rate cuts widen the gap in borrowing costs between the European Union and the United States, where the benchmark federal funds rate is between 4.75% and 5%.
-Nisha Gopalan
Elevance Health stock plummets as Medicaid membership declines
12 hours 35 minutes ago
Shares of Elevance Health (ELV) fell sharply on Thursday after the company reported lower-than-expected profits and lowered its outlook for declining Medicaid enrollment.
The company reported third-quarter earnings per share (EPS) of $4.36, which fell short of analyst estimates compiled by Visible Alpha. Sales increased 5.3% year-on-year to $45.11 billion, exceeding expectations.
The number of medical members decreased by 3.3% to 45.76 million. Medicaid membership fell 19% to 8.93 million people, which the company blamed on re-determination of eligibility in government-sponsored health programs and other changes in several states.
Elevance said it now expects full-year adjusted EPS of $33, down from its previous guidance of $37.20, considering its third-quarter results and the “mismatched timing of Medicaid rates and contingencies.”
Elevance Health shares fell more than 13% in early trading Thursday, pushing the company into negative territory for 2024.
-Bill McCall
TradingView
TSMC stock soars due to strong performance using AI
13 hours 19 minutes ago
Shares in U.S.-listed Taiwan Semiconductor Manufacturing Co. (TSM) rose 9% on Thursday morning after the company reported solid quarterly profits and predicted a positive outlook on the back of an artificial intelligence (AI) boom.
The company, which supplies tech companies such as Apple (AAPL) and Nvidia (NVDA), reported third-quarter net profit of NT$325.26 billion ($10.12 billion), up 54% from a year earlier. ) reported an increase from NT$211. Billion. The profit exceeded the consensus estimate of NT$300.78 billion by analysts compiled by Visible Alpha.
TSMC also reported a 39% increase in revenue for the quarter to NT$759.69 billion ($23.64 billion) and a gross profit margin of 57.8%, beating analyst expectations and second-quarter guidance. Ta.
TSMC’s strong financial results boost investor confidence in the AI boom, in contrast to the lackluster outlook given by Dutch semiconductor equipment maker ASML Holding (ASML) earlier this week, and AI chip giants Nvidia (NVDA), Arm Holdings (ARM) and Advanced’s stock prices have been pushed up. Micro Devices (AMD) is high.
With Thursday’s gains, TSMC stock has doubled this year.
-Nisha Gopalan
TSMC fuels chip stock recovery, stock futures rise
14 hours 27 minutes ago
In premarket trading Thursday, futures contracts tied to the Dow Jones Industrial Average rose 0.2%.
S&P 500 futures rose 0.5%.
Nasdaq 100 futures rose nearly 1% as semiconductor stocks rose.
