The S&P 500 Gains and Losses: A Recap of the Market’s Performance

Introduction

As the week came to a close, major U.S. equities indexes experienced a mixed performance, with little change overall. The S&P 500 settled just below its all-time high after a four-day string of record closes, while the Dow and Nasdaq showed slight movements in opposite directions. Let’s take a closer look at some of the key highlights from Friday, June 14, 2024.

Market Overview

The most recent Michigan Consumer Sentiment Index (MCSI) report revealed that perceptions of the economy dropped to a seven-month low in June. This news, coupled with signs of abating inflation, put pressure on stocks during Friday’s session. The S&P 500 ticked less than 0.1% lower, ending its streak of record highs for the week. The Dow was down 0.2%, while the Nasdaq edged 0.1% higher, extending its record-setting streak to five sessions.

Cruise Operators Take a Hit

Shares of cruise operators saw declines as Bank of America analysts reported a minor drop in pricing for ocean cruises. Norwegian Cruise Line Holdings (NCLH) shares suffered the steepest losses, dropping 7.5%. Carnival Corp. (CCL) and Royal Caribbean Cruises (RCL) also experienced significant declines, falling 7.1% and 4.4%, respectively.

First Solar Faces Challenges

First Solar (FSLR) saw its shares slip by 6.2% despite analysts recently boosting their quarterly earnings estimates for the solar cell manufacturer. The stock may be facing pressure from the Fed’s more muted rate-cut forecasts, impacting solar projects that tend to accelerate when borrowing costs decrease. Additionally, First Solar is dealing with challenges related to high operating costs.

Align Technologies Reports Mixed Results

Align Technologies (ALGN) shares declined by 5.6% following the release of its second-quarter financial results. While the company reported revenue and earnings growth, its guidance was underwhelming, reflecting uncertainties in China’s consumer market outlook.

Adobe Soars on Strong Performance

Adobe (ADBE) shares skyrocketed by 14.5% after the software maker beat estimates and raised its guidance. The company’s strong performance was attributed to robust demand for its generative artificial intelligence (AI) products, easing concerns about potential sales infringements.

Hasbro Sees Positive Momentum

Toymaker Hasbro (HAS) experienced a 6.0% jump in its shares after Bank of America upgraded the stock to “buy” and raised its price target. The bullish outlook was driven by the success of Monopoly Go! and its digital gaming strategy, as well as positive expectations for its Magic: The Gathering card business.

Broadcom Continues to Rise

Broadcom (AVGO) shares were up 3.3% on Friday, adding to significant gains from the previous session. The chipmaker beat quarterly revenue estimates, raised its sales forecasts, and announced a 10-for-1 stock split effective on July 15. Revenue from AI products reached a record level during the quarter, contributing to Broadcom’s impressive performance.

Conclusion

Overall, the market’s performance on Friday reflected a mix of gains and losses across various sectors. While some companies faced challenges and declines, others saw significant growth driven by strong financial results and positive outlooks. As investors continue to monitor economic indicators and corporate earnings reports, the market remains dynamic and subject to fluctuations based on a variety of factors.

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