[ad_1]
Key Takeaways
- The S&P 500 fell 0.6% on Tuesday, Feb. 20, 2024, as semiconductor companies and different tech shares underperformed to start out the shortened buying and selling week.
- Semiconductor shares dropped forward of Nvidia’s quarterly report, regardless of expectations for the chip big to submit large AI-driven income development.
- Shares of Uncover soared after information that Capital One plans to purchase the bank card issuer in an all-stock deal.
Main U.S. equities indexes moved decrease on the primary buying and selling day following the Presidents’ Day vacation. The S&P 500 dropped 0.6%, whereas the Dow and the Nasdaq had been down 0.2% and 0.9%, respectively.
Shares have come beneath strain since knowledge launched final week revealed persistent inflation, suggesting that the Federal Reserve could not decrease rates of interest at its upcoming spring conferences. In the meantime, the shortened buying and selling week will characteristic a number of earnings releases that would yield perception into the trajectory of the U.S. economic system.
Logistics firm Expeditors Worldwide (EXPD) noticed Tuesday’s steepest losses amongst S&P 500 shares. Shares tumbled 7.0% after the freight forwarder reported lower-than-expected revenues and earnings for the fourth quarter amid year-over-year declines in air and ocean freight.
Shares of Albemarle (ALB), the world’s largest lithium producer, plunged 6.3% after the corporate minimize its forecast for lithium demand in 2030 by 10%. The decrease expectations mirror stalling electrical car (EV) manufacturing plans, decreasing the necessity for lithium battery manufacturing.
Semiconductor shares moved decrease forward of Nvidia’s (NVDA) Wednesday afternoon earnings. Whereas analysts count on Nvidia to submit huge income positive factors pushed by synthetic intelligence (AI) demand, questions stay concerning the aggressive surroundings and the sustainability of the AI increase. Nvidia shares fell 4.4% on Tuesday, whereas shares of Utilized Supplies (AMAT) and Superior Micro Units (AMD) fell 5.2% and 4.7%, respectively.
Shares of Uncover Monetary Providers (DFS) posted the highest efficiency on the S&P 500, hovering 12.6% after Capital One Monetary (COF) introduced its plan to accumulate the bank card supplier in an all-stock deal price $35.3 billion. In keeping with Capital One, the mixed firm’s community will probably be aggressive with the biggest funds companies. Shares of Capital One added 0.2% following the information.
Shares of United Airways (UAL) superior 3.5% after the service stated that it’s going to rely upon different plane amid delays to Boeing’s (BA) 737 MAX 10. United has not canceled its order for 277 MAX 10 jets that stay key to its development plan, however within the meantime, the airline will flip to options just like the MAX 9 and the A321 from Boeing competitor Airbus.
Walmart (WMT) shares jumped 3.2% after the retailer reported better-than-expected outcomes for the fourth quarter, boosted by inflation-weary customers searching for low-priced merchandise at its shops. The corporate additionally disclosed a $2.3 billion deal to purchase sensible tv producer Vizio (VZIO). Shares of Vizio had been up 16.2%.
[ad_2]
Source link