U.S. stocks struggled to find direction on Friday, with major indices unable to sustain early gains amidst ongoing concerns over inflation and interest rate hikes. The technology sector was particularly affected, with the S&P 500 Information Technology sector down by 0.51%. In the midst of this, Super Micro Computer (SMCI, Financial) experienced a significant pullback after a period of strong performance, while Iovance Biotherapeutics (IOVA, Financial) received FDA accelerated approval for its advanced melanoma treatment, potentially setting a new precedent for T-cell immunotherapy.
Super Micro Computer's (SMCI, Financial) shares took a hit on Friday, marking the stock's worst day since the previous August. This downturn followed a remarkable rally that began with the company's preliminary FQ2 2024 results announcement on January 18. The stock had surged to an all-time high, but the latest session saw it decline by 17.9%. Despite this, Super Micro's (SMCI) revenue potential in AI servers remains a key driver of investor interest.
Iovance Biotherapeutics (IOVA, Financial) announced a significant milestone with the FDA's accelerated approval of Amtagvi for advanced melanoma. This approval marks the first for a one-time, individualized T-cell therapy for solid tumor cancer, highlighting the potential of TIL cell therapies. Iovance (IOVA) is also conducting a Phase 3 trial to confirm clinical benefits and has prepared for large-scale manufacturing in Philadelphia.
In other news, SoftBank (SFTBY, Financial) is reportedly seeking investors for a $100 billion initiative to enhance the global supply of AI-focused processors, aiming to compete with Nvidia (NVDA, Financial). This ambitious project could involve a substantial investment from SoftBank itself, with the remainder coming from external partners. Nvidia (NVDA), which holds a dominant market share in data center GPUs, is set to report its fiscal fourth-quarter results soon.
Viking Therapeutics (VKTX, Financial) saw its shares rise amid takeover speculation, with Eli Lilly (LLY, Financial) rumored to be one of the potential acquirers. This follows previous reports of interest from an unidentified suitor and comes after Roche (RHHBY) agreed to acquire a peer company in a significant deal, sparking further interest in Viking (VKTX).
JetBlue Airways (JBLU, Financial) is reportedly close to an agreement with activist investor Carl Icahn (Trades, Portfolio), who recently disclosed a nearly 10% stake in the airline. The deal would involve Icahn obtaining two board seats and could prevent a proxy fight. This development is part of a broader narrative of shareholder activism within the airline industry.
Realty Income (O, Financial) is set to announce its Q4 earnings, with expectations shaped by previous quarters' performance and guidance. The net-lease REIT had previously raised its earnings outlook and same-store rent growth forecast, and investors will be looking for further signs of strength in the upcoming report.
NextEra Energy (NEE, Financial) declared an increased quarterly dividend and outlined an updated dividend policy, signaling confidence in the company's growth prospects. The policy suggests a continued rise in dividends per share through at least 2026, based on a 2024 base.
Former Treasury Secretary Lawrence Summers expressed skepticism about the likelihood of Federal Reserve rate cuts, suggesting that there is a chance rates could increase instead. This view contrasts with market expectations, which currently lean towards rate stability or a potential cut in the near future.
The stock market also saw a mix of gainers and losers, with companies like MicroCloud Hologram (HOLO) and Backblaze (BLZE) experiencing significant gains, while others like Dropbox (DBX) and Sunpower (SPWR) faced declines. The volatility reflects ongoing market uncertainty and the diverse factors influencing individual stock performance.
Nvidia (NVDA, Financial) received positive attention from Wall Street firms, with Loop Capital setting a high price target for the stock. This optimism is based on expectations of significant upside to consensus estimates for the coming years, highlighting Nvidia's (NVDA) strong position in the market.
Paramount Global (PARA, Financial) has reportedly engaged in discussions with Comcast (CMCSA, Financial) about a potential streaming partnership, which could involve combining Paramount+ with Peacock. This strategic move would aim to create a more formidable competitor in the streaming landscape, which is currently led by giants like YouTube (GOOG) and Netflix (NFLX).
Jefferies identified a list of buy-rated stocks with improved return on equity and strong momentum. This list includes companies like Electronic Arts (EA, Financial) and Dave & Buster’s (PLAY, Financial), among others, reflecting a focus on financial health and growth potential.
The UAW has issued a strike order to Ford (F, Financial) workers at the Kentucky Truck Plant, highlighting ongoing labor disputes and their potential impact on the company's operations. This comes as Ford's CEO acknowledges the importance of labor issues in determining future vehicle production locations.
Goldman Sachs suggested options for hedging against a potential tech sector drawdown, pointing to puts on stocks and ETFs with high beta and correlation to the tech sector (XLK). This reflects a cautious approach to the sector's high valuations and the desire to protect gains.
Arbor Realty Trust (ABR, Financial) maintained its quarterly dividend, demonstrating stability in its dividend policy. This consistency is an important factor for income-focused investors.
Finally, Block (SQ, Financial) is facing regulatory scrutiny over allegations that its Cash App platform may not be conducting sufficient due diligence on customers, potentially allowing for illegal activities. This investigation could have implications for the company's compliance practices and reputation.
