Tech giants Arm Holdings (ARM, Financial) and AMD (AMD, Financial) experienced significant declines in their share prices amid a broader tech sell-off and rising concerns over geopolitical tensions affecting the semiconductor industry. ARM's shares plummeted by over 8%, while AMD saw a drop of more than 6%. Despite their recent successes, with ARM's shares surging post-IPO and AMD's significant gains driven by investor optimism in AI, the companies faced a challenging day in the market. AMD's recent showcase of its MI300x AI accelerator, aimed at competing with Nvidia (NVDA, Financial) in the data center market, highlighted the company's growth potential in the AI space.
BofA Securities released its top stock picks for the first quarter of 2024, featuring a mix of 8 buys-rated and 2 underperforming stocks across various industries. The list includes American Homes 4Rent (AMH, Financial), Citigroup (C, Financial), Fidelity National Information Services (FIS, Financial), Humana Inc. (HUM, Financial), Intuitive Surgical (ISRG, Financial), and Lear Corp. (LEA), among others. These selections are based on anticipated market and business catalysts that could influence their performance in the upcoming quarter.
Bitcoin (BTC-USD) surged to new heights, reaching over $45K for the first time in nearly two years, driven by investor anticipation of a potential spot exchange-traded fund approval and the upcoming halving event. This rally in Bitcoin also spurred gains in crypto-linked stocks, with BTC showing a remarkable 160% increase in 2023.
Alibaba Group Holding (BABA) announced a substantial share repurchase, buying back shares worth $9.5B over the past year, including $2.9B in the fourth quarter alone. This aggressive buyback strategy led to a 3% reduction in outstanding shares, with $11.7B still available for future repurchases. Despite this, Alibaba's shares dipped slightly in premarket trading.
Leisure stocks, including cruise lines and theme parks, faced a downturn as investors adopted a more cautious stance. Carnival Corporation (CCL), Royal Caribbean Cruises Ltd. (RCL), and Norwegian Cruise Line Holdings Ltd. (NCLH) all saw their shares fall significantly, reflecting investor wariness ahead of the fourth-quarter earnings season and a slew of economic reports.
Oil prices climbed as geopolitical tensions in the Red Sea escalated. Iran's deployment of a warship to the region followed the U.S. sinking of three Houthi boats, leading to concerns over potential disruptions in a critical trade route. This resulted in a price increase for both Nymex crude (CL1:COM) and Brent Crude (CO1:COM).
Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA, Financial) were among the major tech stocks that faced a sell-off, with Apple's shares dropping after a Barclays downgrade. Concerns over Apple's hardware business, including the upcoming iPhone 15, contributed to the decline. Meanwhile, Microsoft and Nvidia also experienced downward pressure on their stock prices.
Palantir Technologies (PLTR) announced that its board of directors would meet in Israel, affirming its support for the country amid the ongoing conflict with Hamas. Despite this announcement, Palantir's shares saw a modest decline in mid-day trading.
Wedbush Securities predicted that tech stocks, led by Apple (AAPL) and Microsoft (MSFT), could propel the Nasdaq to reach the 20,000 mark this year. The firm anticipates a 25% rise in tech stocks for 2024, driven by the rapid monetization of AI among enterprises.
Goldman Sachs updated its Conviction List Directors' Cut report, adding Parker Hannifin Corp. (PH) and Textron Inc. (TXT) to its list of favored stocks. The report highlighted the potential for growth in various sectors, with specific price targets and upside expectations for a range of companies.
AT&T (T) shares continued their upward trajectory, marking the seventh consecutive session of gains. The telecom giant's stock reached its highest level since early December, despite a general decline in 2023.
Atai Life Sciences (ATAI) saw its shares jump after reporting positive Phase 1 trial data for EMP-01, a derivative of MDMA, for the treatment of developmental and epileptic encephalopathies (DEEs).
Cruise stocks, including Norwegian Cruise Line (NCLH), Royal Caribbean (RCL), and Carnival Corp. (CCL), experienced a rough start to 2024, with all major names recording significant losses despite their strong performance in the previous year.
Biotech stocks emerged as notable gainers, with companies like Moderna (MRNA), Ocugen (OCGN), and Inovio Pharmaceuticals (INO) seeing their shares rise. Bank of America's constructive outlook on SMID-cap biotechs and specialty pharma contributed to the sector's positive momentum.
Vertex Energy (VTNR) increased its borrowings under its term loan, with the total outstanding balance now at $198M. The amended agreement includes an interest rate based on a base rate plus 1025 basis points, with the possibility of an additional $25M loan at the lenders' discretion.
United Parcel Service (UPS) was added to Wells Fargo's Tactical Ideas List for Q1 2024, with expectations of price discipline in the parcel industry and potential earnings support from volume growth and domestic tailwinds.
Longboard Pharmaceuticals (LBPH) experienced a dramatic increase in its share price following positive topline data from a study of its drug bexicaserin for the treatment of DEEs.
Crude oil prices ended the day lower, unable to maintain earlier gains despite concerns over potential supply disruptions in the Red Sea due to increased Middle East tensions.
