S&P 500’s Biggest Gains and Losses Today
2 hr 2 min ago
Here are the S&P 500 stocks that gained and lost the most today.
Dow Dips Ahead of Fed Rate Decision
2 hr 19 min ago
Ahead of tomorrow’s Federal Reserve interest rate decision, the Dow Jones Industrial Average slid 0.3%, or about 107 points, as investors await hints about the odds of further interest rate hikes later this year.
Shares of IBM (IBM) increased 1%, making it the best-performing stock in the Dow 30. Apple (AAPL) moved higher by 0.6%, and Salesforce (CRM) added 0.3%. Tech was one of the better-performing corners of the market, with the sector losing less than 0.1% today.
Honeywell (HON) gained 0.5%, while shares of Amgen (AMGN) increased by 0.4%.
Intel (INTC) shares fell 4.3% as it demonstrated a new chip, due in December, designed to run generative artificial intelligence (AI) chatbots on a laptop, rather than having access cloud data centers.
Walt Disney Co. (DIS) shares plunged 3.6% after it said it would double its investment in its parks to more than $60 billion over the next 10 years as the entertainment giant seeks to supercharge its largest profit center.
Shares of Goldman Sachs (GS) declined 0.4% despite serving as the lead underwriter for the initial public offering (IPO) of Instacart (CART), which saw its share price rise 12% in its first day of trading.
Microsoft (MSFT) declined 0.1% after it was revealed that the company’s AI research team accidentally exposed a large quantity of private data on GitHub, a software development platform.
-Terry Lane
Treasury Yields Surge to Highest Since Before the Financial Crisis
3 hr 34 min ago
Treasury yields rose to their highest since 2007 as traders ramped up bets of higher interest rates for longer amid a recent uptick in inflation.
5-year Treasury yields rose to as high as 4.52% Tuesday and 10-year yields hit an intraday high of 4.37%, the highest either has been since before the financial crisis.
Yields are rising on the expectation of persistent inflation and, subsequently, an extended period of higher interest rates. U.S. inflation ticked up to 3.7% in August as oil prices rose.
Tuesday’s Treasury rout came after data showing price increases in Canada accelerated to 4% last month.
The 10-year Treasury yield is a key benchmark that influences interest rates throughout the economy, impacting everything from mortgage rates to the interest charged on credit card balances and car loans.
Rocket Lab Shares Sink After Rocket Failure
4 hr 13 min ago
Shares of Rocket Lab USA (RKLB) plunged 7% Tuesday afternoon after a satellite delivery failed following a rocket malfunction.
Rocket Lab’s Electron rocket successfully lifted off before an issue about two and a half minutes into the flight resulted in “the end of the mission,” the company said.
Rocket Lab said that its next flight, currently scheduled for the end of this quarter “will be postponed until we implement corrective action.” The company added that it plans to provide revised third-quarter revenue guidance “in the coming days.”
Despite Tuesday’s decline, shares of Rocket Lab remained higher for 2023.
-Bill McColl
YCharts
Midday Market Movers
4 hr 47 min ago
Instacart (CART): Shares were up 32% on their first day of trading after the grocery delivery platform priced shares at $30.
Enphase Energy Inc. (ENPH): The solar company’s stock rose more than 4% after an SEC filing revealed that Thurmond Rodgers, a member of its Board of Directors, purchased $4 million worth of stock last week.
Cboe Global Markets Inc. (CBOE): Shares of the exchange operator gained more than 3% after CEO Edward Tilly stepped down after the board found he had failed to disclose “personal relationships with colleagues.”
Planet Fitness Inc. (PLNT): Shares of the gym chain fell 5%, adding to their losses since last week’s surprise dismissal of CEO Chris Rondeau by the company’s board.
Halliburton Co. (HAL): Shares of the oilfield services company fell 3% after the Guardian reported that $7.1 million worth of the company’s equipment was exported to Russia after it closed its operations there.
Disney to Invest $60 Billion in Parks and Cruises in the Next Decade
5 hr 47 min ago
The Walt Disney Co. (DIS) said in an SEC filing Tuesday it will nearly double its investment in its parks and experiences business over the next decade, bringing total capital expenditures at its vacation destinations to $60 billion.
Disney’s parks have been a boon for the company as it has struggled to adapt to a changing entertainment environment dominated by streaming services. The parks and experiences division recorded double-digit revenue and net income growth in the most recent quarter, while Disney Media’s sales and earnings contracted.
Shares of the entertainment giant fell nearly 4% in early trading Tuesday.
Instacart Jumps in the Ring with $30 Per Share IPO
8 hr 54 min ago
Instacart set a price of $30 a share for its initial public offering today, valuing the grocery delivery company at just under $10 billion.
The company had forecast a price between $28 and $30, a range it boosted last week after shares of Arm Holdings Plc (ARM) gained about 25% on their first day of trading. Arm raised nearly $5 billion in its IPO, making it the year’s largest debut despite its relatively conservative pricing.
Instacart has taken a more aggressive pricing strategy, but its valuation still pales in comparison to the $39 billion valuation it secured at the height of the pandemic.
Scaled-back ambitions aside, Instacart’s listing today could encourage even more companies to go public later this year and put wind in the sails of marketing automation company Klaviyo and German shoemaker Birkenstock, both of which are set to IPO in the coming weeks.
Stocks Making the Biggest Moves Premarket
9 hr 38 min ago
Gainers:
- Stellantis NV (STLA): Shares of the carmaker gained more than 2% after the United Auto Workers (UAW) threatened to widen their strike against it and peers General Motors (GM) and Ford (F).
- Royal Caribbean Group (RCL): The cruise operator’s shares rose almost 2% after analysts at Trust upgraded its outlook for the cruise sector and upgraded Royal Caribbean to buy from hold. Carnival Corp. (CCL) also gained nearly 2%.
- U.S. Steel Corp. (X): Shares of the steel maker climbed 1% after it said it expected to earn between $1.10 and $1.15 a share this quarter, down from last year. The company had expected earnings to take a hit from the United Auto Workers strike launched last week.
Losers:
- Rocket Lab USA Inc. (RKLB): Shares of the aerospace company lost 18% after a satellite launch failed, its first in over two years.
- Nio Inc. (NIO): The electric car maker’s stock fell about 7% after it announced a $1 billion convertible bond offering.
- Arm Holdings Plc (ARM): The chip designer’s shares fell 4%, continuing their slide after jumping 25% in their first day of trading last week. Arm is set to open around $56, just 9% above its IPO price.
5 Things to Know Before Markets Open
10 hr 3 min ago
Here’s what investors need to know to start their day:
- Grocery delivery company Instacart, which is set to begin trading on the Nasdaq under the symbol “CART,” priced its IPO at $30 a share, valuing the company at about $10 billion.
- Alphabet’s (GOOGL) Google rolled out new features for its Bard artificial intelligence (AI) chatbot including the ability to fact-check its answers and analyze user’s personal data on Google.
- Chinese electric vehicle maker NIO (NIO) said it would offer to investors $1 billion in convertible bonds, which can be turned into company shares, but could also dilute the value of existing shares of the stock.
- Online clothing service Stitch Fix reported a 22% drop in revenue as the company’s active client base fell to 3.3 million, down from 3.4 million the prior quarter and 3.8 million from the same period a year ago.
- Housing starts fell to 1.28 million in August from 1.45 million in July, a larger drop than economists expected. But building permits, a forward-looking indicator, rose 7% from July to 1.54 million.
-Terry Lane
Futures Inch Higher as Investors Anticipate Fed Meeting
10 hr 31 min ago
Futures contracts connected to the Dow Jones Industrial Average were up less than 0.1% in premarket trading.
S&P 500 futures took a similarly small step up.
Nasdaq 100 contracts were flat.
