Major Indexes Inch Higher as Stock Market Steadies After Selloff

Biggest S&P 500 Movers on Wednesday

26 minutes ago

Advancers

• Caesars Entertainment (CZR) shares jumped 5.3%, the day’s best performance in the S&P 500, after the casino operator announced a senior note offering and stock buyback. Caesars said it plans to offer $1 billion in senior notes to institutional investors using a private placement. The company also authorized a $500 million share repurchase program following the completion of its previous buyback.
• Server and data storage provider Super Micro Computer (SMCI) completed a 10-for-1 stock split after the closing bell on Monday. The split-adjusted shares traded 3.6% higher on Wednesday. The gains for Supermicro follow a steep drop for the stock last week amid reports of the Justice Department launching an investigation into the company’s accounting practices.
• Shares of customer relationship management software provider Salesforce (CRM) added 3.2% after Northland Capital Markets upgraded the stock to “outperform.” Analysts pointed to strong opportunities for Agentforce, a platform launched by Salesforce earlier this month that can integrate generative artificial intelligence (AI) technology into sales, service, and marketing processes.

Decliners

• Humana (HUM) shares plunged 11.8%, more than any other S&P 500 stock on Wednesday, after the Centers for Medicare and Medicaid Services (CMS) downgraded a significant percentage of the insurer’s Medicare offerings. The star ratings issued by the CMS could have an impact on Humana’s revenue, as insurers receive bonus payments when they offer higher-rated plans. The company suggested that there could be flaws in the system for determining ratings.
• Shares of Conagra Brands (CAG) dropped 8.1% after the food maker reported lower-than-expected sales and profits for its fiscal first quarter. The maker of Healthy Choice frozen meals and Hunt’s ketchup cited a difficult operating environment amid restrained consumer spending. Conagra’s organic organic net sales and gross profit declined from a year ago, while corporate expenses surged more than 150%, driven by increased incentive compensation.

• Nike (NKE) reported mixed quarterly results late Tuesday, topping net income forecasts but falling short on revenue. However, the footwear and athletic apparel maker did not offer full-year guidance on its earnings call, and its shares fell 6.8%. Nike is in the midst of a leadership transition, with Elliott Hill set to take over as chief executive officer in mid-October, and the company said the withdrawal of its annual forecasts will give Hill more time in the new role. The sneaker maker also said it would postpone its investor day, which was originally scheduled for Nov. 19.

–Michael Bromberg

Chinese Stocks Extend Rally With More Big Gains

1 hr 2 min ago

The Nasdaq Golden Dragon China index (HXC)—an index of 64 China-based companies traded in the U.S—gained almost 5% Wednesday as the rally in Chinese stocks shows no signs of abating.

Chinese stocks have surged since early last week following news that authorities were implementing a wide-ranging stimulus plan.

The iShares MSCI China ETF (MCHI) added nearly 7% on Wednesday and has gained 30% since the close of trading on Sept. 23, just before the first batch of stimulus measures were unveiled.

Caesars Jumps on Stock Buyback, Debt Sale News

2 hr 42 min ago

Caesars Entertainment (CZR) shares jumped Wednesday after the hotel and casino operator announced a big new stock buyback, along with a bond offering to pay off older debt.

The company wrote in a regulatory filing that the board had approved a $500 million share repurchase program after the expiration of the previous $150 million one, which was begun in 2018. Caesars noted that after buying back 3.87 million shares in its 2024 fiscal third quarter, no more of that allocated money remained.

Caesars also said it plans to sell $1 billion worth of senior notes due in 2032. The company explained that the money raised would be used to “redeem or repurchase … a portion of the Company’s existing 8.125% Senior Notes due 2027 and to pay fees and expenses in connection with the offering.”

Caesars shares were up nearly 5% about 10 minutes before the closing bell, after rising as much as 7.8% to its highest point since early April. Despite the gain Wednesday, the stock is still down about 10% in 2024.

–Bill McColl

Humana Shares Plunge to Lowest Level Since 2020

4 hr 12 min ago

Shares of health insurance provider Humana (HUM) plunged to a four-year low after a large share of its Medicare offerings were downgraded by the Centers for Medicare and Medicaid Services (CMS).

Roughly 25% of Humana members, about 1.6 million people, are currently enrolled in plans that have a 4-star or higher Medicare Advantage rating for 2025, according to preliminary data—a massive drop from 94% in 2024. 

Humana could take a substantial revenue hit if the preliminary data stands when CMS releases its official ratings later this month, as higher star ratings generate bonus payments for the insurers that offer them.

The company said it is “disappointed” with its performance and suggested there may be errors in the way the ratings were calculated. CMS star ratings review plan performance once a year on factors such as the number of annual screenings and preventive services offered, how long it takes to get an appointment, and complaint levels. 

Shares were down more than 12% in recent trading, after falling as much as 24% earlier Wednesday.

–Andrew Kessel

Tesla Tumbles as Deliveries Fail to Impress

7 hr 24 min ago

Tesla (TSLA) shares fell Wednesday morning after the electric vehicle maker reported quarterly delivery numbers that came in slightly higher than analysts had expected.

Tesla delivered 462,890 vehicles in the third quarter and said it produced 469,796 vehicles in the quarter. Those figures are up from 435,059 deliveries and production of 430,488 vehicles in the third quarter a year ago.

Analysts had expected roughly 461,000 deliveries and production of just under 450,000 vehicles, according to estimates compiled by Visible Alpha. Wedbush analysts said the figures were “a step in the right direction,” but added the stock could be pressured as investors may have expected more.

Deliveries fell year-over-year in the first two quarters of the year, leading Tesla stock to sink over the first half of the year, before recovering in recent months. Analysts from Deutsche Bank and Wedbush said in the week leading up to Wednesday’s announcement that investors’ focus will likely be more on next week’s planned “robotaxi” unveiling rather than the delivery data.

The EV maker also announced Wednesday that its full third-quarter results will be released after the market closes Oct. 23.

Tesla shares were down nearly 5% in recent trading, slipping back into negative territory for the year to date.

–Aaron McDade

Nike Tumbles as Company Withdraws Outlook

9 hr 36 min ago

Nike (NKE) shares moved sharply lower in premarket trading Wednesday after the apparel and equipment giant withdrew its full-year outlook and said it plans to postpone its upcoming investor day ahead of the company’s transition to a new CEO later this month.

The stock has rallied more than 25% from the lower trendline of a falling wedge, though Wednesday’s projected earnings-driven selling threatens to derail the recent bullish price momentum.

Shares were down 7.3% at $82.67 about half an hour before the opening bell Wednesday.

Investors should monitor key lower price levels on Nike’s weekly chart around $85 and $79, while watching important higher price levels near $96 and $104.

Read the full technical analysis piece here.

–Timothy Smith

Futures Point to Lower Open for Major Indexes

10 hr 10 min ago

Futures tied to the Dow Jones Industrial Average were down 0.2%.

S&P 500 futures were down 0.3%.

Nasdaq 100 futures were also off 0.3%.