S&P 500 Gains and Losses Today: Medical Device Makers ResMed, Insulet Lead Index

The S&P 500 added 0.2% on Tuesday, Aug. 27, ahead of Nvidia’s earnings report on Wednesday and key economic data on tap for later in the week. ResMed shares soared amid an upbeat outlook for sleep apnea treatments, while Insulet shares jumped following a new FDA approval. Shares of Paramount Global fell after media executive Edgar Bronfman Jr. withdrew a bid to acquire the company.

Market Overview

Major U.S. equities indexes ticked higher ahead of a potentially consequential earnings report from semiconductor giant Nvidia (NVDA) as well as key inflation and economic data set for release later in the week.

The S&P 500 and the Nasdaq both closed Tuesday’s session around 0.2% higher. The Dow’s minimal gain of less than 0.1% was enough to secure a second straight record high at close for the blue-chip index.

ResMed Soars on Positive Outlook

Shares of medical device maker ResMed (RMD) logged the top performance of any stock in the S&P 500 on Tuesday, soaring 7.3%. A recent report from Transparency Market Research predicted a solid 8.5% compound annual growth rate (CAGR) for the sleep apnea devices market, where ResMed is a major player. Researchers believe government efforts to regulate sleep disorders, improved diagnostic processes, and aging global populations will drive market growth. In addition, Zacks Equities Research recently highlighted ResMed as a top momentum stock, citing an ongoing uptrend combined with strong earnings fundamentals.

Insulet Receives FDA Approval

ResMed was not the only medical technology provider that enjoyed a positive trading day. Insulet (PODD) shares jumped 6.6% after the Food and Drug Administration (FDA) cleared the company’s Omnipod 5 insulin pump for use by patients with type 2 diabetes. The approval makes Omnipod 5 the first automated insulin delivery system to receive a green light from regulators for managing both type 1 and type 2 diabetes.

Travel Industry Stocks Rise

Shares companies across the travel industry moved higher after Singapore-based travel platform Trip.com (TCOM) posted better-than-expected quarterly sales and profits, boosted by a growing number of travelers and strong cross-border demand in Chinese markets. In addition, a report by Zacks Equities Research said strong booking and pricing trends could drive near-term growth for cruise operators. Shares of Royal Caribbean Cruises (RCL), Norwegian Cruise Line (NCLH), and Carnival (CCL) gained 4.3%, 3.6%, and 2.7%, respectively.

Walgreens Boots Alliance Suffers Steep Loss

Walgreens Boots Alliance (WBA) shares tumbled 9.0%, suffering the steepest daily loss in the S&P 500. The pharmacy giant’s stock dropped after Eli Lilly (LLY) announced plans to launch a cheaper version of its popular weight-loss treatment, which could have a negative impact on Walgreens sales. The company is also navigating challenges related to lower reimbursement rates for prescription drugs, as well as high levels of inflation and competition.

Paramount Global Faces Uncertainty

Paramount Global (PARA) shares slid 7.2% after reports media executive Edgar Bronfman Jr. withdrew his proposal to purchase the entertainment firm. Uncertainties about how he would finance the deal reportedly contributed to Bronfman’s decision to abandon the bid. Following Bronfman’s exit, Paramount now appears set to move forward with its previously agreed-upon deal to be acquired by production company Skydance Media.

Insider Sales Impact Building Materials Providers

Shares of building materials provider Martin Marietta Materials (MLM) sank 4.3%. Although Morgan Stanley boosted its price target on the stock, citing predicted strength in the U.S. cement market, reports of significant share sales by company insiders suggest a potential lack of confidence in the firm’s upcoming performance. Shares of industry peer Vulcan Materials (VMC) were down 4.1% on the day.

Overall, the S&P 500 experienced a mixed trading day, with some stocks soaring on positive news while others faced challenges. Investors will be closely watching Nvidia’s earnings report and upcoming economic data for further insights into market trends.

Disclaimer: The information provided here is for informational purposes only and should not be considered as investment advice. Investing in stocks carries a certain level of risk, and individuals should carefully consider their investment decisions based on their own financial circumstances.