Apple (AAPL, Financial) shares experienced a notable surge, climbing over 3% as Bank of America upgraded the tech giant, highlighting its potential growth in artificial intelligence with the upcoming Vision Pro. The bank's analysts are optimistic about the new generative AI features expected to be integrated into the iPhone, predicting a robust multi-year upgrade cycle. They have increased their iPhone unit sales forecasts for the coming years, suggesting that institutional investors may bolster their positions in Apple due to its underweight status in comparison to the S&P 500. Despite legal risks, the analysts believe these are manageable and that the Vision Pro could eventually outpace iPad revenues as spatial computing gains traction.
The semiconductor sector continued to demonstrate resilience, with several stocks outperforming early in 2024, building on their momentum from the previous year. Notable gainers included Meta Materials Inc (MMAT), Advanced Micro Devices (AMD, Financial), Orion Energy Systems (OESX), Marvell Technology (MRVL), NVIDIA Corporation (NVDA), SMART Global Holdings (SGH), Aeva Technologies, Inc. (AEVA), WISeKey International Holding AG (WKEY), Transphorm, Inc. (TGAN), and SEALSQ Corp, with year-to-date increases ranging from 12.6% to over 30%. This sector's performance underscores the critical role semiconductors play in the burgeoning AI technology landscape.
Norfolk Southern (NSC, Financial) saw its shares rise by 3.5% amid rumors that the railroad operator could become a target for activist investors. The company has underperformed its peers over the past year, and with recent safety concerns, there is speculation that activists may push for leadership changes. Norfolk Southern is preparing to report its Q3 results soon, which will be closely watched by investors.
iRobot Corp. (IRBT, Financial) shares plummeted by 12% following a decline the previous day, as concerns mounted over the potential impact of a blocked sale of Spirit Airlines (SAVE) to JetBlue (JBLU). Additionally, speculation is rife that the Federal Trade Commission may challenge Amazon's (AMZN, Financial) proposed acquisition of iRobot, with a decision expected from the European Commission by mid-February.
Cryptocurrency-related stocks faced a downturn as Bitcoin (BTC-USD) and other altcoins like Ethereum (ETH-USD), Cardano (ADA-USD), Solana (SOL-USD), and Dogecoin (DOGE-USD) experienced declines. This comes after a recent approval of exchange-traded funds investing in Bitcoin, with BlackRock's (BX) iShares Bitcoin Trust (IBIT) notably surpassing $1 billion in inflows within a week of its launch.
Kinder Morgan (KMI, Financial) reported a dip in its stock value following a miss in Q4 adjusted earnings and revenue expectations. The company, affected by lower natural gas prices and increased interest expenses, remains optimistic about the growth of its pipeline and storage business, which is expected to benefit from strong demand for U.S. liquefied natural gas exports.
In the materials sector, stocks like Lifezone Metals (LZM), Baiyu Holdings (BYU), American Battery Technology (ABAT), Nature Wood Group (NWGL), and Ramaco Resources (METC) saw gains, while others such as Fortuna Silver Mines (FSM), Standard Lithium (SLI), 5E Advanced Materials (FEAM), and Lithium Americas (LAAC) faced declines. The sector continues to attract attention with its performance and prospects.
Spirit Airlines (SAVE) managed to pare back some of its earlier losses after reports emerged that the company is exploring financial options following a blocked sale to JetBlue (JBLU). The airline is considering discussions with advisers to address its upcoming debt maturities, with a significant amount due in September 2025.
ResMed (RMD) faced a Class I recall by the FDA for its AirFit and AirTouch masks used with respiratory care devices due to concerns about the magnetic components interfering with metallic medical devices like pacemakers. This recall is the most serious type and could have implications for both the company and patients using these products.
Alibaba (BABA) and JD.com (JD) are offering significant discounts on iPhones ahead of the Chinese Lunar New Year, outpacing even Apple's own promotions. This aggressive pricing strategy comes as Apple seeks to boost its smartphone sales in China amidst stiff competition.
Eli Lilly (LLY) and Novo Nordisk (NVO) raised the list prices for their popular diabetes medications, Mounjaro and Ozempic, respectively. These increases are part of a broader trend of drug price hikes that have been observed across the pharmaceutical industry.
Netlist (NLST, Financial) saw its shares jump by 10% as a scheduled trial in its patent lawsuit with Micron (MU) was canceled, drawing investor attention to the ongoing legal battle over memory module technologies.
ConMed (CNMD, Financial) experienced a decline in its stock price after concerns were raised about the future demand for its AirSeal product, which is used in Intuitive Surgical's (ISRG) da Vinci robotic surgical systems. A potential new system from Intuitive Surgical with a built-in insufflator could impact AirSeal's growth.
Roku (ROKU, Financial) shares continued their downward trend, marking a seventh consecutive session of losses. The streaming device company has been under pressure, with its stock price nearing its November 2023 lows.
Electric vehicle battery charging stocks saw an uptick after the U.S. Transportation Department announced funding for projects to repair or replace existing EV charging ports. This initiative is part of a broader effort to expand the nationwide network of chargers.
Managed care organizations like Centene (CNC), UnitedHealth Group (UNH), Cigna (CI), Elevance (ELV), and CVS Health (CVS) saw their shares drop following Humana's (HUM) lowered earnings guidance for 2023. This news has cast a shadow over the sector, with Humana's shares hitting a 52-week low.
Walgreens Boots Alliance (WBA, Financial) is facing a continued decline as management decisions and a significant settlement over a drug-pricing dispute impact investor sentiment. The stock has been on a downward trajectory for several days, reflecting broader concerns about the company's financial health.
Wells Fargo (WFC, Financial) shares extended their losing streak, marking a seventh consecutive session of declines. The bank's stock has been under pressure, reaching its lowest levels in over a month.
Paramount (PARA, Financial) saw its shares rise premarket following an upgrade from CFRA. The entertainment company's stock is being closely watched due to potential changes in control and merger speculation.
