Markets News, June 26, 2024: Nasdaq Leads Stocks Higher; Amazon Market Cap Tops $2T (2024)

Stock Indexes Wrap: Amazon Leads Indexes Higher; Airlines, AI Stocks Lag

June 26, 2024 04:27 PM EDT

The Dow

Amazon (AMZN) shares rose 3.9%, propelling its market capitalization above $2 trillion for the first time amid reports the company would launch a discount shopping section to compete directly with Chinese rivals Temu and Shein.

Apple (AAPL) gained 2% after analysts at Rosenblatt upgraded the stock to buy and raised their price target, citing its emphasis on privacy in its artificial intelligence products.

S&P 500

FedEx (FDX) jumped 15.5% after reporting better-than-expected quarterly results and saying that management was undertaking a strategic review of its freight business. Competitor UPS (UPS) gained 2.8%.

Tesla (TSLA) shares rose 4.8%, following peer Rivian (RIVN) higher. Rivian stock popped after it announced a $5 billion investment from German automotive giant Volkswagen.

Carnival (CCL) climbed 3.1%, rising for a second day after reporting a surprise quarterly profit yesterday. Norwegian Cruise Line Holdings (NCLH) added 1.7%.

Nvidia (NVDA) recovered from earlier losses to close up 0.2% as shareholders met for its annual general meeting.

General Mills (GIS) shares fell 4.6% after the company reported disappointing quarterly sales and offered soft guidance.

Stocks that have ridden higher on waves of AI optimism in recent months lagged on Wednesday. Utilities Constellation Energy Corp. (CEG) and Vistra (VST) fell 5.4% and 3.9%, respectively. Server maker HP (HPQ) fell 3.3% and memory chip maker Western Digital (WDC) shed 1.8%.

Delta Airlines (DAL) slipped 1.3% after peer Southwest Airlines (LUV) cut its second-quarter guidance on softer bookings. United Airlines dropped 0.9%.

Nasdaq 100

Software makers were some of the index’s best performers. MongoDB (MDB) gained 6.1%, while Datadog (DDOG) advanced 3.4% and Atlassian (TEAM) rose 2.5%.

Moderna (MRNA) slumped 11% after Centers for Disease Control data showed the efficacy of its RSV vaccine fell over time and was lower than its rivals’ shots.

What You Need To Know Ahead of Micron Technology's Earnings Report

June 26, 2024 03:50 PM EDT

Micron Technology(MU) is set to report its third-quarter earnings for the 2024fiscal yearafter the bell on Wednesday,with investors likely watching for updates on how it stands to gain from growing demand forartificial intelligence (AI) and its partnership with AI darling Nvidia (NVDA).

Analysts project Micron's revenue to come in at $6.7 billion for the third quarter of fiscal 2024, up from the previous quarter and year-ago period, according to estimates compiled by Visible Alpha.

Net income is expected to be $399.39 million, compared to a loss of $1.9 billion in the fiscal third quarter of 2023. Dilutedearnings per share (EPS)could come in at 30 cents, up from a loss of $1.73 per share in the same period a year earlier.

See here for more on what analysts expect to come out of Micron's earnings announcement and call.

-Naomi Buchanan

Amazon Becomes Fifth U.S. Company to Reach $2 Trillion Market Cap

June 26, 2024 03:10 PM EDT

Shares of Amazon (AMZN) rose more than 4% in intraday trading on Wednesday, lifting its market capitalization above $2 trillion and making it the fifth U.S. company to reach the milestone.

Amazon has been buoyed lately by surging spending on artificial intelligence and cloud computing, a field in which Amazon commands significant market share alongside Microsoft (MSFT) and Alphabet (GOOGL). Lately, bets that the Federal Reserve will cut interest rates later this year have given tech stocks a leg up, while the e-commerce business has held up despite the pressures of high inflation and interest rates.

Amazon was the fourth U.S. company to close above $1 trillion when it did so for the first time in February 2020. Adding the second trillion has been slow going for the e-commerce giant, at least when compared to most of its mega-cap peers.

If Amazon closes above $2 trillion, it will have taken the company 1,104 trading days, or more than 4 years, to add its second trillion dollars. Meanwhile, Alphabet’s second trillion took 1,075 days. Apple (AAPL) and Microsoft, the first companies to cross $2 trillion, both took 516 days. And blowing them all out of the water is Nvidia (NVDA), which surged from $1 trillion to $2 trillion in just 180 days.

What's Next for Chipotle After Its 50-for-1 Stock Split

June 26, 2024 02:30 PM EDT

Chipotle Mexican Grill (CMG) has completed its 50-for-1 stock split, and started trading on a split-adjusted basis Wednesday as the restaurant chain looks forward to its earnings next month and its long-term plans to continue opening new locations.

Shares were little changed Wednesday, but stocks that undergo stock splits often see increased trading activity, "gaining 25% one year later vs. 12% for the broad index," according to Bank of America analysts.

Management said when announcing the split that their primary motivation was to make shares more accessible, especially to employees.

Those who do purchase the stock could benefit when Chipotle reports second-quarter results after the bell on July 24. Shares jumped in April after the company reported better-than-expected first-quarter revenue and profit. And Wedbush analysts wrote in a recent note that Chipotle is "poised to sustain accelerated market share gains" going forward.

Chipotle shares were up 0.2% at $65.79 Wednesday afternoon.

-Aaron McDade

Whirlpool Stock Jumps on Bosch Takeover Report

June 26, 2024 01:23 PM EDT

Shares of Whirlpool (WHR) jumped in intraday trading Wednesday following a report that German rival Robert Bosch was considering buying the U.S. appliance manufacturer.

Reuters reported Bosch was holding discussions with potential advisers about making a bid for Whirlpool, which would expand its reach in the home appliance market. The news site added that it’s not certain that an offer will be made.

In emailed statements to Investopedia, both Whirlpool and Bosch explained that as a matter of practice they "do not comment on market rumors."

Whirlpool shares surged about 15% Wednesday afternoon. Still, shares are down more than 20% for 2024.

-Bill McColl

Rivian Stock Soars After Securing $5B Investment From Volkswagen

June 26, 2024 12:28 PM EDT

Rivian (RIVN) shares soared 20% in intraday trading on Tuesday following news that German automaker Volkswagen (VWAGY) plans to invest $5 billion in the electric vehicle (EV) startup as part of a joint venture to create industry-leading vehicle software.

Volkswagen will make an initial $1 billion investment in the EV maker and expects to inject another $4 billion into the company by 2026, the automakers said in a joint statement late Tuesday.

“Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth,” Rivian founder and CEO RJ Scaringe said in the statement.

The joint venture comes after Ford (F) exited its majority stake in the EV company last year, scrapping its initial plans to co-develop plug-in cars with Californian-based Rivian.

See here for more on price levels to watch in the days to come.

-Timothy Smith

General Mills Slumps as Sales Drop Amid 'Challenging Operating Environment'

June 26, 2024 11:31 AM EDT

Shares of General Mills (GIS) slumped Wednesday after the consumer foods giant posted weaker-than-expected revenue and gave soft guidance on lower prices and volumes.

The maker of Cheerios cereal, Betty Crocker cake mixes, and Blue Buffalo pet food reported fiscal 2024 fourth-quarter sales of $4.71 billion, a 6.3% year-over-year decline and below the consensus estimate of $4.85 billion of analysts surveyed by Visible Alpha. Adjusted earnings per share (EPS) of $1.01 exceeded forecasts by 2 cents.

North American retail sales dipped 6.9% to $2.85 billion. Pet sales slid 8.1% to $602.1 million, while international sales tumbled 10.4% to $667.5 million. The only unit with positive growth was North American foodservice, which saw revenue rise 4.4% to $589 million.

Total volumes fell 2 percentage points as North American retail and pet volumes declined 6 and 7 percentage points, respectively.

Shares of General Mills were down more than 4% midday Wednesday, putting them in negative territory for the year.

-Bill McColl

FedEx Leads S&P 500 as Wall Street Cheers Cost Cuts

June 26, 2024 10:36 AM EDT

FedEx (FDX) was the best-performing stock in the S&P 500 by a wide margin on Wednesday morning after the delivery and logistics company reported better-than-expected quarterly earnings after the bell Tuesday.

The company reported revenue of $22.1 billion for the fiscal fourth quarter of 2024, up from the year-ago period and slightly above analysts' expectations, according to estimates compiled by Visible Alpha.

Net income came in at $1.47 billion, or $5.94 per diluted share, down from $1.54 billion, or $6.05 per share, in the same period a year prior, but surpassing analysts' projections. Excluding one-time items,adjusted earningsincreased nearly 10% to $5.41 per share.

“These results are unprecedented in this current environment, reflecting our continued execution of our DRIVE initiatives and our resolve to transform FedEx while we deliver outstanding service to our customers," Subramaniam said. Fedex's DRIVE program is focused on driving profit by cutting costs.

FedEx shares were up more than 14% Wednesday morning at about $293, a nearly 3-year high.

-Naomi Buchanan

Stocks Making the Biggest Moves in Early Trading

June 26, 2024 09:49 AM EDT

Gains:

• Rivian (RIVN): Rivian shares were up over 29%, continuing a rise that started in extended trading Tuesday after announcing it had secured a $5 billion investment from German automotive giant Volkswagen.
• FedEx (FDX): The package shipping giant jumped more than 12% after reporting an earnings beat in results released after the bell Tuesday, with the company’s plan to cut costs to handle decreased demand from the pandemic peak paying off.
• Vista Outdoor (VSTO): Shares of the company behind outdoor and firearm brands like Camelbak and Remington rose 9% on the news that MNC Capital raised its takeover offer to $3.2 billion, contending with another offer from the Czechoslovak Group of $2 billion for The Kinetic Group, one of Vista’s subsidiaries.
  

Losses:

• General Mills (GIS): Shares of the snack food and cereal giant fell more than 4% following the release of an earnings report with sales projections below expectations.
• Sanofi (SNY): The French pharmaceutical giant fell 3% after reports emerged Tuesday that it is looking to sell or spin off its consumer health division that sells products like Icy Hot.
• Trump Media (DJT): Shares of the former president’s media company extended a volatile stretch, falling 2% Wednesday morning after gaining 8.5% Tuesday ahead of the first presidential debate set for Thursday night.

-Aaron McDade

Stock Futures Fall Ahead of Nvidia Shareholder Meeting

June 26, 2024 08:57 AM EDT

Futures contracts connected to the Dow Jones Industrial Average were down 0.2% in early trading on Wednesday.

S&P 500 futures fell 0.2%.

Nasdaq 100 futures also traded 0.2% lower.