Stock Rally Continues as S&P 500, Nasdaq Close Higher for 4th Straight Day

Biggest S&P 500 Movers on Thursday

September 12, 2024 06:00 PM EDT

Advancers

• Shares of Warner Bros. Discovery (WBD) led the S&P 500 higher, soaring 10% after the entertainment giant renewed its distribution deal with Charter Communications (CHTR), the country’s largest pay TV provider. Under the terms of the new deal, inked by the two companies a year before the expiration of their existing agreement, Charter will increase the fees it pays to carry certain Warner Bros. Discovery TV channels, while fees for TNT will remain stable, despite the network’s loss of its NBA broadcasting rights.
• Kroger (KR) shares surged 7.2% after the country’s largest supermarket chain reported better-than-expected adjusted profit for the second quarter. Kroger’s CEO expressed confidence in the company’s position as it aims to complete its acquisition of Albertsons grocery stores, even as federal regulators take measures to block the deal.
• Shares of Axon Enterprise (AXON), maker of the Taser and other law enforcement equipment, gained 6.3% as JMP Securities boosted its price target on the stock. Analysts highlighted the growth trajectory of Axon’s Taser 10 and Body Camera 4, as well as its software tools. Axon also has drawn attention for its Draft One software, which uses artificial intelligence (AI) technology to generate an initial incident report using audio recorded by officers’ body cameras.

Decliners

• Moderna (MRNA) shares lost more than any other S&P 500 constituent, plunging 12% as the biotechnology firm said it would cut its research and development pipeline. As part of the cost-cutting measure, Moderna will suspend or end development of certain products while focusing on later-stage trials.
• Shares of solar technology firm Enphase Energy (ENPH) slipped 4.3%. Thursday’s losses gave back a portion of the gains notched after Tuesday’s presidential debate. Vice President Kamala Harris’ performance was seen as lifting the outlook for green energy policies, helping drive a rally for industry stocks.

• The Office of the Comptroller of the Currency (OCC), a federal agency that oversees the banking industry, issued an enforcement action order on Thursday against financial giant Wells Fargo (WFC). The regulatory action is related to the bank’s anti-money laundering (AML) and financial crimes risk management practices. Wells Fargo shares dropped 4%.

–Michael Bromberg

Major Indexes Near End-August Levels

September 12, 2024 05:46 PM EDT

Major U.S. stock indexes have recovered almost all of the ground lost during the early-September swoon that generated the worst weekly losses in more than a year.

Heading into Friday’s session, the Nasdaq Composite and S&P 500, which are riding four-session winnings streaks, are less than 1% below their end-August levels. The Dow Jones Industrial Average, which has finished higher in three of the last four sessions, is 1.1% below where it closed last month.

The S&P 500 and Nasdaq are up 3.5% and 5.3%, respectively, this week, while the Dow has tacked on 1.9%.

Warner Bros. Discovery Soars on Renewed Deal With Charter

September 12, 2024 04:36 PM EDT

Warner Bros. Discovery (WBD) shares soared 10% on Wednesday, the top performance in the S&P 500, after the entertainment giant renewed its distribution deal with Charter Communications (CHTR), the nation’s largest pay TV company.

The companies inked the new deal a year before the expiration of their existing agreement. In an environment of cord-cutting and other shifts in the media landscape, securing distribution deals has become a pressing issue.

The updated deal includes an increase in the fees Charter will pay to carry Warner Bros. Discovery channels, including cable-TV outlets CNN, TBS, and Food Network. As for TNT, the Warner Bros. Discovery property that recently lost its broadcast rights to the NBA, the fees are set to remain stable. Securing the Charter agreement without taking a significant pay cut for a basketball-free TNT appears to be a positive outcome for Warner Bros.

According to The Wall Street Journal, executives at Warner Bros. Discovery believe the Charter deal could provide leverage as the firm pursues distribution renewals with other pay TV players. Negotiations with Comcast (CMCSA) and DirecTV are on deck

–Michael Bromberg

Signet Stock Jumps on Signs of Optimism

September 12, 2024 03:54 PM EDT

Signet Jewelers (SIG) shares jumped Thursday as the jewelry retailer beat profit forecasts and gave an upbeat assessment of same-store sales. 

The operator of Zales, Jared, and Kay Jewelers stores posted fiscal 2025 second-quarter diluted earnings per share of $1.25, 9 cents better than the average estimate of analysts surveyed by Visible Alpha. Revenue declined 7.6% to $1.49 billion, short of forecasts. 

Same-store sales dropped 3.4% in the second quarter. CEO Virginia Drosos said that they were “turning positive third quarter to date.” The company expects them to finish in a range of down 1.0% to up 1.5%. Wall Street was projecting a 1.2% decline, according to Visible Alpha data.

Signet shares were up 12% in late trading Thursday.

–Bill McColl

Rate Cut Optimism Pushes Gold to Fresh Record High

September 12, 2024 02:26 PM EDT

The price of gold reached another all-time high Thursday as investors gained more confidence that global interest rates will continue falling.

As the European Central Bank cut its benchmark rate for the second time in three months, the spot price of gold rose as high as $2,567 per troy ounce, up 1.5% from Wednesday. It marked the latest in an extended string of fresh highs in a year in which gold has surged nearly 24%.

The price of gold, seen as a safe-haven asset, tends to move inversely to the direction of interest rates, and Thursday’s rally was no exception. That’s because it’s increasingly apparent that investors think key global central banks have embarked on a sustained path of cutting interest rates. When rates fall, the yields on lower-risk investments like Treasury bonds can look less favorable when compared to gold.

In addition to the ECB’s rate cut, the Federal Reserve is widely expected to cut its benchmark lending rate next week for the first time in four years. The Bank of England cut rates in August for the first time in four years. The BOE meets again next week, and although it may hold rates steady for now, many economists expect it will resume cutting rates in November,

–Lyle Niedens

Kroger Stock Jumps After Earnings

September 12, 2024 12:52 PM EDT

Kroger (KR) shares surged Thursday after it reported better-than-expected adjusted profit for the second quarter.

The supermarket chain posted adjusted earnings per share (EPS) of $0.93, topping the $0.91 consensus estimate of analysts polled by Visible Alpha. Diluted EPS of $0.64 and revenue of $33.91 billion missed expectations.

Kroger affirmed most of its full-year outlook, while lifting the floor for its same-store sales growth projection, excluding fuel, to 0.75% from 0.25%.

 Chief Financial Officer Todd Foley said the chain’s “positive customer trends are driving sales momentum that we expect to continue in the second half of the year.”

Kroger Shares were up 5% in recent trading.

–Aaron McDade

Moderna Sinks on Plans to Cut R&D Spending

September 12, 2024 10:57 AM EDT

Moderna (MRNA) shares plunged Thursday morning after the COVID vaccine maker announced plans to trim its research and development pipeline to cut costs.

The company said it will focus on getting FDA approval for 10 products to treat RSV and cancer, along with a combination COVID and flu vaccine.

Moderna said it expects the moves to lower expenses by $1.1 billion by 2027.

The stock was down 18% in recent trading and has lost about a third of its value since the start of the year.

–Aaron McDade

Watch These First Solar Levels After Post-Debate Surge

September 12, 2024 09:02 AM EDT

First Solar (FSLR) shares were down slightly in premarket trading Thursday after soaring 15% on Wednesday, leading a broader rally for clean energy stocks, amid investor optimism about the sector in the wake of the previous night’s presidential debate.

Wednesday’s jump from a saucer pattern’s neckline occurred on the highest share turnover since late June and saw the price close above the closely-watched 50-day moving average, indicating conviction behind the buying.

Investors should watch important overhead price levels at $235, $265, and $300, while monitoring key support around $215 during retracements

Read the full technical analysis piece here.

–Timothy Smith

Major Indexes Slightly Higher Ahead of Data Releases

September 12, 2024 07:56 AM EDT

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

S&P 500 futures were up 0.1%.

Nasdaq 100 futures were also up 0.1%.