Friday’s Biggest S&P 500 Movers
6 hours 37 minutes ago
progressive
Uber boat Thames Clipper in London, June 10, 2024.
Mike Kemp/Photo by/Getty Images
Fastenal (FAST), which makes nuts, bolts, screws and other industrial supplies, reported third-quarter sales and profit results that beat analysts’ expectations. Strong demand for the company’s safety products fueled the strong performance, despite the disruption to sales caused by Hurricane Helen. Fastenal stock ended Friday up 9.8%. Shares of industrial maintenance, repair and operations supplier WW Granger (GWW) soared 5.8% to a record high. In its most recent earnings report released in August, Grainger reported year-over-year sales growth driven by strong performance in its High Touch Solutions and Endless Assortment divisions. Banking season begins Friday with two of the country’s largest financial institutions reporting quarterly results, with more companies expected to follow suit next week. Wells Fargo (WFC) shares rose 5.6% after the company announced third-quarter sales and net income that exceeded expectations. JPMorgan Chase (JPM), the world’s largest bank by market capitalization, also beat revenue and bottom line expectations while reporting a year-over-year increase in net interest income (NII), sending its stock price up 4.4%. did. Shares of Bank of America (BAC), which is scheduled to report earnings on Tuesday, rose 5.0%.
refuser
AO Smith (AOS) shares soar after the water heater and boiler maker reports lackluster preliminary third-quarter results and expects revenue and earnings per share (EPS) to fall below consensus estimates. As a result, the stock fell by 6.3%. The company also lowered its full-year profit outlook, citing weak demand for residential and commercial water heaters in North America and a cautious outlook for the Chinese market in the second half of the year. Shares of orthodontic products maker Align Technology (ALGN) fell 3.3% after Stifel lowered his price target. Analysts also lowered their full-year sales and profit forecasts, indicating they do not expect Align to reach an inflection point in the near future.
-Michael Blomberg
Impact of rising government bond yields on stock prices
7 hours 38 minutes ago
The 10-year Treasury yield rose above 4.1% this week for the first time since July, continuing its rise that paradoxically coincided with the start of the rate cut cycle.
The 10-year Treasury yield has risen about 0.5 percentage point since it fell below 3.6% on September 17, the day before the Federal Reserve lowered the benchmark federal funds rate from its highest level in more than 20 years.
Stock investors are often concerned about rising yields for several reasons. First, they devalue stocks by pulling money out of the stock market and raising yields on less risky bonds. Second, it prevents consumers and businesses from borrowing, squeezing economic growth and corporate profits in the process.
Traders work in the S&P options pit at the CBOE Global Markets exchange in Chicago.
Alex Wroblewski/Bloomberg/Getty Images
But rising U.S. Treasury yields haven’t hampered stock prices in recent weeks. The S&P 500 index closed at its 45th all-time high on Friday, with the 10-year Treasury yield hitting its highest level in two months. Major stock indexes rose for the fifth consecutive week.
Stock prices have been supported recently by growing confidence on Wall Street that the strength of the U.S. economy can support corporate profits. Earnings have largely held up through years of rising interest rates, and the Fed’s easing cycle, whether aggressive or more cautious, should primarily be a tailwind for companies and stocks.
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-Colin Laidley
Columbus Day market schedule
8 hours 35 minutes ago
Given that the New York Stock Exchange (NYSE) and Nasdaq are mostly closed according to the federal holiday calendar, it may be surprising that both companies will be open for business as usual on Columbus Day, Monday.
The two remaining holidays on each exchange’s calendar for 2024 are Thanksgiving and Christmas, with further reduced hours on the day after Thanksgiving and Christmas Eve.
However, federal operations such as the Federal Reserve and the Post Office will be closed on Monday, as will commercial banks that follow the federal holiday schedule. The bond market will also be closed.
-Aaron McDade
Why Uber hit an all-time high after robotaxi rollout
9 hours 37 minutes ago
Shares of Uber Technologies (UBER) soared to an all-time high on Friday after Tesla’s (TSLA) long-awaited robot taxi launch event failed to meet the concerns of ride-sharing investors.
Tesla on Thursday night unveiled the CyberCab, a self-driving car designed for ride-sharing, and the RoboVan, a 20-seat vehicle. CEO Elon Musk said the CyberCab will cost less than $30,000, and his vision is for individuals to operate a fleet of CyberCabs instead of driving one car for Uber or Lyft. explained.
Analysts were disappointed with the event, saying it was less detailed than many Uber and Lyft investors had feared. In a note to clients, Jefferies analysts called CyberCab a “no-go” and said the event was “the best possible outcome for Uber.”
Analysts say Tesla has not provided “verifiable evidence of progress” on autonomous vehicles (AVs) and that Uber is “uniquely positioned to support sustainable growth for AV developers.” I’m writing. Jefferies rates Uber stock a “buy.”
Analysts at Bank of America said some risks remain, including the possibility that operating costs for RoboVan and CyberCab will be significantly lower than traditional rideshares. However, Tesla said it has “no concrete business model” for ride-sharing apps that compete with Uber and Lyft. Uber’s rating remained “buy”.
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Uber stock rose 11% Friday afternoon, leading the S&P 500 gainers. Rival Lyft (LYFT) stock rose 9%.
-Bill McCall
Tesla price level to watch as stock price declines after robotaxis event
11 hours 16 minutes ago
Tesla (TSLA) stock fell sharply on Friday after the company’s highly anticipated robotaxis event failed to meet investor expectations.
Since hitting bottom in early August, Tesla stock has been on an upward trend until early October, after which it fell back within the flag, a chart pattern that indicates the stock price will continue to rise.
However, sales remain below average, and large market participants may be on the lookout for October updates from automakers, including vehicle deliveries, robotaxi events, and quarterly earnings announcements in two weeks. It suggests something.
Source: TradingView.com.
Investors should keep an eye on key support levels on the Tesla chart near $225 and $205, while monitoring overhead resistance areas near $265 and $300.
Shares were down 8% at about $220 as of 1:00 p.m. ET on Friday.
Read the full technical analysis here.
-Timothy Smith
The pace of major indexes rises for the fifth consecutive week
12 hours 2 minutes ago
Major U.S. indexes are on track to post their fifth consecutive week of gains as the stock market rebounds from last week’s shaky start.
While the S&P 500 and Dow Jones Industrial Average are on track to close at record highs, the Nasdaq Composite was just 1.7% off its closing high as of midday Friday.
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Wells Fargo soars after earnings release
12 hours 48 minutes ago
Wells Fargo (WFC) stock rose about 6% Friday morning after the bank reported better-than-expected third-quarter sales and profits.
The company reported net income of $5.11 billion for the quarter, down from $5.77 billion in the year-ago period but nearly $500 million higher than analysts expected. Wells Fargo’s sales also fell year over year to $20.37 billion, but were slightly better than expected.
Wells Fargo’s stock price has risen nearly 25% this year.
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-Aaron McDade
Automaker announces management shake-up; Stellantis’ performance worsens
13 hours 23 minutes ago
Shares of Stellantis (STLA) stalled in early trading on Friday after the parent company of brands like Jeep and Chrysler announced a management shake-up as it looks to recover from sluggish sales.
The changes included China COO Doug Osterman replacing CFO Natalie Knight.
The company said the changes were made to “double down” its focus on key priorities and address the global challenges facing the industry.
CEO Carlos Tavares called this “a Darwinian era for the auto industry” and said he expected the new management team to help “tackle the challenges ahead.”
Stellantis has been reeling from a slowing auto market, excess inventory and competition from China. Last month, the automaker revised its outlook downward. Last week, sales in the United States decreased significantly. Barclays lowered its share price on the news and warned that a full-fledged recovery for Stellantis was not expected until at least the first half of next year.
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Stellantis shares were down nearly 3% Friday morning and are down 44% so far in 2024.
-Bill McCall
Tesla shares tanks after robotaxi event fails to impress
14 hours 41 minutes ago
Tesla (TSLA) stock prices rose early Friday as the market initially appeared unimpressed with the electric vehicle (EV) maker’s “We, Robot” event last night, which included the announcement of self-driving taxi and van models. , was sluggish.
Tesla on Thursday unveiled its latest vehicles, including a fully self-driving robotaxi and a large robovan that can transport groups of people and cargo.
Provided by Tesla
The self-driving taxis, called CyberCabs, are expected to go into production by 2026 if Tesla can get regulatory approval for its fully self-driving software, according to CEO Elon Musk. said the Model 3 and Model Y should be introduced in California and Texas by next year.
At the event, Musk will also unveil the RoboVan, a large self-driving vehicle designed to transport groups of people and luggage, as well as a Tesla vehicle that will serve drinks, dance and perform other functions. The humanoid robot “Optimus” was also unveiled.
One factor weighing on Tesla stock may be that analysts say they expect the company to unveil a lower-priced car that could go on sale next year. Analysts at Wedbush said in a note Friday that the lack of a Model 2 announcement was due to “the elephant in the room this morning,” adding that Musk and Tesla “ideally” The network works, admitting they should have spent more time on details such as how taxis work.
Tesla shares fell nearly 10% in early trading Friday.
-Aaron McDade
JP Morgan’s profit rises significantly above expectations
15 hours 28 minutes ago
JPMorgan Chase (JPM) stock rose about 1% in premarket trading after the bank reported growth in sales and net interest income in its third-quarter results.
The world’s largest bank by market capitalization posted revenue of $42.65 billion, well above the $39.87 billion reported in the same period last year and the $40.85 billion consensus estimate from analysts compiled by Visible Alpha. Reported net interest income (NII) increased from $22.73 billion to $23.41 billion.
Profits decreased slightly from $13.15 billion to $12.9 billion, but earnings per share increased slightly from $4.33 to $4.37. Analysts had expected sales of $11.81 billion, or $3.97 per share.
Rising interest rates in recent years have pushed JPMorgan and other banks to record levels of net interest income, but rising deposit costs have hurt bank profits in recent quarters and loan growth has also stagnated. .
JPMorgan and other banks are reporting earnings amid a changing economic environment, as the U.S. Federal Reserve last month cut interest rates for the first time since 2020. Analysts expect the new rate cut and the possibility of future rate cuts to lower deposit costs and boost investment. Banking and loan growth is expected in the coming quarters.
JPMorgan Chase CEO Jamie Dimon said this week in an interview with Bloomberg Television in London.
Holly Adams/Bloomberg/Getty Images
Analysts and investors have also recently focused on how JPMorgan plans to replace its 68-year-old CEO, Jamie Dimon. The influential executive has said in recent months that the bank wants to ensure its plans are executed correctly when he steps down in the next few years.
-Aaron McDade
Major index futures fall ahead of economic data release
16 hours 20 minutes ago
Futures, which track the Dow Jones Industrial Average, fell less than 0.1%.
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S&P 500 futures also fell less than 0.1%.
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Nasdaq 100 futures fell 0.3%.
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