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Equity Indexes Wrap: Chip Stocks Extend Rally; Apple and Tesla Tumble
3 hr 11 min ago
The Dow
Intel (INTC) was one of several semiconductor stocks that soared Monday, gaining 4.1%.
Boeing (BA) ticked up 0.3% after American Airlines placed an order for 260 planes, including 85 Boeing 737 Max 10s.
Apple (AAPL) tumbled 2.5% after it was fined 1.8 billion euros ($2 billion) by EU regulators over its App Store practices.
Healthcare stocks lagged, with Merck (MRK) falling 2.3%, UnitedHealth Group (UNH) dropping 1.6%, and Johnson & Johnson (JNJ) slipping 1.4%.
The S&P 500
Gold miner Newmont Corp. (NEM) rose 5.6% as gold futures surged to a record high.
Morgan Stanley (MS) gained 4.2% as it launched a pre-IPO trading service.
Ford (F) gained 2.2% after it said U.S. vehicle sales increased 10.5% on a year-over-year basis in February.
American Airlines (AAL) fell 5.4% after ordering 260 planes from Boeing, Airbus, and Embraer. It also forecast that 80% of revenue in 2024 will come from loyalty program members and customers buying premium tickets.
The Nasdaq 100
Nvidia (NVDA) led the semiconductor rally, rising 3.6% after gaining 4% on Friday. Qualcomm (QCOM) and Advanced Micro Devices (AMD) added 2.1% and 1.3%, respectively.
Tesla (TSLA) tumbled 7.2% after preliminary data suggested it shipped fewer cars from its Shanghai factory in February than in any month since December 2022.
Entertainment companies Warner Bros. Discovery (WBD) and Paramount Global (PARA) fell 6.5% and 5.9%, respectively.
Alphabet (GOOGL) slid 2.8%.
Tesla Stock Slumps on Falling Shipments in China
3 hr 46 min ago
Tesla Inc. (TSLA) shares slumped Monday after new sales data showed deliveries from its Shanghai Gigafactory at their lowest level in a year as domestic competition heated up.
The automaker delivered 60,365 vehicles from its China factory in February, according to preliminary data from China’s Passenger Car Association (CPCA) on Monday. That marked the lowest level since December 2022 and was 16% lower than in January.
Vehicle sales are prone to a seasonal slowdown in China around the Lunar New Year early each calendar year, but the latest figures come amid a backdrop of slower electric vehicle (EV) sales and increased competition in the country.
Tesla is also facing stiff competition from domestic EV rivals such as the Warren Buffett-backed BYD (BYDDY) and Xpeng Inc. (XPEV).
Tesla shares were off 6.7% at $189.06 late in the session on Monday, with the stock now down about 24% year-to-date.
Nvidia Leads as Semiconductor Stock Rally Continues
4 hr 44 min ago
Shares of semiconductor companies climbed Monday, extending Friday’s rally on the back of Dell’s better-than-expected earnings report.
Nvidia (NVDA) shares were up more than 5% Monday afternoon, while American Depositary Receipts of contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSM) climbed nearly 4%. Advanced Micro Devices (AMD), which gained 9% last Thursday and 5% on Friday, rose another 2%.
Chip stocks were given a boost last Friday when Dell (DELL) beat earnings expectations, citing robust demand for AI-optimized servers.
Sea Limited Gets a Boost From Its E-Commerce and Financial Services Units
5 hr 13 min ago
American Depositary Receipts (ADRs) of Sea Limited (SE) gained Monday after the Southeast Asian consumer internet company posted better-than-expected results on higher sales at its e-commerce and digital financial services units.
The Singapore-based firm reported a fourth-quarter loss of $0.19, with revenue increasing 4.8% to $3.62 billion. Both were above forecasts. Full-year net income came in at $162.7 million, its first annual profit since going public in 2017.
Quarterly sales at the company’s Shopee online shopping site rose 23.2% to $2.6 billion, and they were up 24.3% to $472.4 million at its SeaMoney financial services platform. Revenue slumped 46.2% to $510.8 million at its Garena digital entertainment business.
Sea Limited ADRs were up about 5% at $53.54 Monday afternoon but down about 18% over the past year.
TradingView
Apple Fined Nearly $2B by EU Over App Store Practices
6 hr 17 min ago
The European Union (EU) fined Apple (AAPL) around $2 billion (1.8 billion euros) for “abusive App store rules for music streaming providers” in a move that the iPhone maker says could bolster Spotify (SPOT).
The European Commission said in a press release Monday that it fined the company for violating EU antitrust rules and that Apple “abus[ed] its dominant position on the market for the distribution of music streaming apps to iPhone and iPad users (‘iOS users’) through its App Store.
The iPhone maker based in Cupertino, California responded that it intends to appeal the EU’s decision, which it said would bolster the already dominant position of Swedish company Spotify.
The fine comes ahead of the Digital Markets Act (DMA) going into effect on March 6. The new law regulates big tech companies to promote competition, consumer choice, and innovation in the EU. Apple, which the Commission has designated as a “gatekeeper,” has already made changes to some of its systems, including the App Store and Apple Pay, to comply with the DMA.
Apple shares were down about 3.2% at $173.84 Monday afternoon. Spotify shares, meanwhile, were up 1.8% at $268.36, their highest price since November 2021.
BofA Raises S&P 500 Year-End Target to Highest on Wall Street
7 hr 12 min ago
Bank of America’s betting that the good times are ripe to continue for the S&P 500—in the long run, anyway.
The bank on Sunday raised its year-end target for the index to 5,400 from 5000, implying a 5% upside from Friday’s close.
The new target makes BofA one of the most bullish major international firms on Wall Street. Its target matches that of UBS, which became the Street’s most optimistic firm when raised its target last month.
BofA’s U.S. Equity and Quantitative Strategy lead Savita Subramanian said in a note that swings in interest rates and inflation haven’t hurt margins, with earnings surprising to the upside. Companies, she said, have shifted their focus to productivity, and as a result, there is an upside to the firm’s 2024 EPS forecast of $235.
In support of BofA’s bullish thesis is the observation that pension fund allocations to public equities are still at 20-year lows. Additionally, the euphoria that typically signals the end of a bull market, analysts say, is currently “thematic and secular.” The bull market has room to “broaden beyond” the themes of artificial intelligence and weight-loss drugs.
There are caveats, however. A small pullback is likely “after four months with no meaningful drop.” Plus, Subramanian wrote, “our bullish conviction has cooled since publishing our 2024 Outlook [in November] amid improving sentiment across Wall Street.”
JetBlue, Spirit Airlines Terminate $3.8 Billion Merger, Spirit Stock Skids
7 hr 55 min ago
JetBlue (JBLU) and Spirit Airlines (SAVE) have called off their $3.8 billion proposed merger after regulators blocked the deal.
Spirit Airlines stock fell 15% Monday morning, while shares in JetBlue were trading almost 4% higher.
The deal, announced in July 2022, would have created the fifth-largest carrier in the United States and that brought antitrust scrutiny from regulators. A federal judge ruled against the airlines at the beginning of this year.
While the companies said they still believed in the merits of the transaction, they are giving up on the merger since they won’t be able to acquire the necessary approvals by the July 2024 deadline. JetBlue will pay Spirit $69 million to settle the termination of the deal.
With Monday’s decline, Spirit Airlines shares have lost more than 70% of their value since the merger was first announced.
TradingView
Super Micro Computer Stock Jumps on S&P 500 Inclusion
8 hr 42 min ago
Shares in Super Micro Computer (SMCI) jumped more than 20% in premarket trading Monday following an announcement that it will be included in the large-cap S&P 500 Index.
Super Micro and Deckers Outdoor Corp. (DECK) will nudge out whitegoods maker Whirlpool (WHR) and regional bank Zions Bancorporation (ZION) from the blue-chip index, with the changes taking effect before the start of trading on March 18, according to S&P Global.
The San Jose, California company, whose stock price has more than tripled since the start of the year, has seen its market capitalization surge to more than $50 billion amid an AI-fueled buying frenzy.
Super Micro shares have remained in a steady uptrend since the 50-week moving average crossed above the 200-week moving average in May 2020 to generate a golden cross buy signal. Impressively, the few retracements the stock had in 2023 didn’t manage to reach the 50-week moving average, highlighting the uptrend’s strong momentum.
More recently, gains have accelerated on above-average volume after the price broke above a period of four-month consolidation in the form of an ascending triangle—a chart pattern that suggests a continuation of the current longer-term trend. If the stock sees a wave of profit-taking, monitor the $300 to $350 level where a pullback may find support from the triangle’s top trendline and rising 50-week moving average.
Macy’s Buyout Offer Jumps to $6.6B as Arkhouse and Brigade Raise Their Bid
9 hr 25 min ago
Macy’s (M) shares surged 16% in early trading Monday after the investor group whose previous offer for the embattled department-store chain was rejected raised its bid by nearly $1 billion.
Real estate-focused Arkhouse Management and asset manager Brigade Capital Management said Sunday that they are now offering to acquire the Macy’s stock they don’t already own for $24 a share, or $6.6 billion—up from December’s $21-per-share offer that valued the retailer at around $5.8 billion and 33% higher than the shares’ $18.01 close on Friday.
Arkhouse remains “open to increasing the purchase price further subject to the customary due diligence,” Managing Partners Gavriel Kahane and Jonathon Blackwell said in a statement. Outlining financing plans, Kahane and Blackwell said they were backed by investors Fortress and OneIM.
Macy’s board said it will review and evaluate the latest proposal.
Stocks Making the Biggest Move Premarket
10 hr 5 min ago
Gains:
- Super Micro Computer Inc. (SMCI): Shares of the data center company jumped 16% after S&P Dow Jones Indices said it would be added to the S&P 500 effective March 18. Shoe company Deckers Outdoor Corp. (DECK), which was also named to the index, rose about 5%.
- Macy’s Inc. (M): Shares climbed more than 14% after investors Arkhouse Management and Brigade…
Read More: Markets News, Mar. 4, 2024: Stocks Slump as Bitcoin Approaches $68K; Gold Closes at Record
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