Market Overview
The stock market had a subdued start to the week, with minimal gains and losses across major indexes. The Dow Jones Industrial Average and the equal-weighted S&P 500 both saw slight increases of 0.1%, while the market-cap weighted S&P 500 dipped by 0.1%, and the Nasdaq Composite fell by 0.4%. Market sentiment was cautious ahead of the upcoming release of the February Consumer Price Index (CPI).
Market Breadth
At the Nasdaq, market breadth leaned negative, though only modestly, with decliners slightly outnumbering advancers. The NYSE saw a more balanced scenario, with decliners and advancers almost equal.
Notable Stock Movements
- NVIDIA (NVDA) dropped by 2.0%, closing at $857.74, despite earlier gains, amid a volatile trading session. Year-to-date, NVDA shares have surged by 73.2%.
- Meta Platforms (META) experienced a 4.4% decline to $483.59, yet it's still up 36.6% for the year.
- Microsoft (MSFT) slightly fell by 0.4% to $404.62, with a 7.6% gain since the start of the year.
- Applied Materials (AMAT) also saw a decrease of 2.0%, ending at $201.37, but announced a 25% increase in its quarterly dividend to $0.40 per share.
- Apple (AAPL) went against the trend, rising by 1.2% to $172.75, although its shares are down 10.3% this year.
- Alphabet (GOOG) closed up 1.9% at $138.94, despite being down 1.4% in 2024.
Sector Performance
- The information technology sector was impacted by losses in major companies, declining by 0.4%.
- The industrial sector dropped by 0.5%, partly due to a 3.0% loss in Boeing (BA, Financial) following news of a criminal probe into a door plug issue.
- The S&P 500 energy sector outperformed, gaining 1.0%, despite EQT (EQT) falling by 7.8% after confirming a merger agreement with Equitrans Midstream Corporation (ETRN).
- Materials and consumer staples sectors were among the top gainers, up 1.1% and 0.6%, respectively.
Treasury and Economic Data
Treasuries ended with losses, with the 2-year note yield rising to 4.53% and the 10-year note yield to 4.10%. A $56 billion 3-year note auction attracted solid demand. No significant US economic data was released today.
Year-to-Date Performance
- S&P 500: +7.4%
- Nasdaq Composite: +7.2%
- S&P Midcap 400: +6.1%
- Dow Jones Industrial Average: +2.7%
- Russell 2000: +2.7%
Upcoming Economic Indicators
Key economic indicators to watch include the February NFIB Small Business Optimism index and the February Treasury Budget. Additionally, global market performances and commodity prices will continue to be areas of interest for investors.
Today's News
The major market averages concluded Monday's trading session with mixed results. The Nasdaq Composite (COMP:IND) experienced a slight decline, dropping by 0.4%, while the S&P 500 (SP500) saw a minor decrease of 0.1%. Conversely, the Dow Jones Industrial Average (DJI) managed to end the day in positive territory, gaining 0.1%. Sector performance varied, with Materials leading the gains and Industrials and Real Estate trailing at the bottom. This mixed market performance comes amid broader discussions on the economic outlook and market leadership.
Oracle (ORCL, Financial) shares witnessed a notable surge, nearly 7% in extended-hours trading, following the announcement of fiscal third-quarter results that exceeded expectations. The company reported earnings of $1.41 per share on $13.28B in revenue, with significant growth in cloud services and support revenue. Oracle's CEO highlighted the signing of large new cloud infrastructure contracts as a key driver of performance, underscoring the company's strong position in the cloud computing sector.
Asana (ASAN, Financial) also made headlines with its fourth-quarter financial results, surpassing analyst expectations with a Non-GAAP EPS of -$0.04 and revenue of $171.1M. Despite a slight decline in shares post-announcement, Asana's forward-looking guidance indicates continued growth and a strategic focus on leveraging AI for collaborative work solutions.
In other news, British American Tobacco (BTI, Financial) is reportedly in talks with bankers to negotiate a partial sale of its stake in ITC, aiming to sell between $2B and $3B through block trades. This move could have significant implications for the company's financial strategy and market positioning.
Micron Technology (MU, Financial) announced the appointment of Robert Swan to its board of directors, signaling a strategic move to strengthen its leadership team amidst the evolving semiconductor industry landscape.
Boeing (BA, Financial) faced challenges as a 787 Dreamliner experienced a "technical event" during a flight, resulting in injuries to about 50 passengers. The incident led to a 3.1% decline in Boeing's stock, highlighting the sensitivity of airline stocks to operational disruptions.
President Joe Biden's budget proposal, calling for tax hikes on large businesses and the wealthy, has sparked discussions on its potential impact on the market and investment climate. The proposal aims to address fiscal responsibility while promoting equitable tax policies.
Vail Resorts (MTN, Financial) reported a miss in its Q2 GAAP EPS and revenue, leading to a downward adjustment in its fiscal year 2024 guidance. The company's performance reflects the challenges facing the leisure and hospitality sector.
Essential Properties Realty Trust (EPRT, Financial) announced a public offering of 8M shares, indicating a strategic move to raise capital for future growth initiatives.
Morgan Stanley (MS, Financial) reportedly faces challenges in collecting fees related to Elon Musk's Twitter acquisition, highlighting the complexities of high-profile M&A transactions and their financial implications.
Finally, Citi analysts anticipate a resurgence in buyback activity, projecting aggregate buybacks to reach $900B this year. This trend underscores the ongoing strategic use of capital allocation to enhance shareholder value.
