The S&P 500 Gains and Losses Today: Deckers Outdoor Jumps on Uggs and Hoka Demand
Introduction
On Friday, May 24, 2024, the S&P 500 added 0.7%, closing out a week that saw reemerging inflation concerns cast a shadow over strong earnings news. Major U.S. equities indexes moved higher, boosted by outperformance from the technology sector. The gains on Friday closed out a week that saw a blockbuster earnings report from semiconductor giant Nvidia (NVDA) but also several signs of sticky inflation, which raised doubts about how long interest rates might remain elevated.
Deckers Outdoor Soars on Strong Earnings
Shares of footwear maker Deckers Outdoor logged Friday’s biggest gains in the S&P 500, soaring 14.2% to hit an all-time high following a strong quarterly earnings report. Robust demand across its Uggs and Hoka shoe brands helped Deckers beat sales and profit estimates for its fiscal fourth quarter of 2024.
First Solar shares also jumped 10.8%, shining yet again on Friday after notching the S&P 500’s top performance for two consecutive sessions earlier this week. First Solar stands to benefit from tax credits under the Inflation Reduction Act, and analysts have recently pointed to the company’s opportunity to meet the high energy demand from artificial intelligence (AI) processes.
Renewable Energy Companies Benefit from AI Demand
The enthusiasm around powering AI may have extended to other renewable energy companies. Shares of GE Vernova, the energy equipment maker that completed its spinoff from the General Electric conglomerate earlier this year, added 9.8%. Shares of fellow renewable energy technology provider Enphase Energy were up 6.5%.
Intuit Faces Challenges
On the other hand, Intuit shares tumbled 8.4%, marking the weakest performance of any S&P 500 stock, after the financial software provider said it expects to lose 1 million customers from the free version of its TurboTax tax filing program.
Shares of cloud-based human resources platform Dayforce sank 7.6% after rival Workday issued softer-than-expected guidance for its subscription revenue. The firm expects sales scrutiny and slower customer headcount growth to drag on results. Workday shares plunged 15.3% on Friday.
Elevance Health Impact Investing Program
Elevance Health shares dropped 4.1%, receding from the all-time highs posted by the stock earlier this week. The health benefits company announced earlier this week that it would launch a $10 million impact investing program aimed at addressing health equity issues.
Conclusion
In conclusion, the S&P 500 saw a mix of gains and losses on Friday, with Deckers Outdoor and First Solar leading the way with significant gains driven by strong earnings reports. However, companies like Intuit and Workday faced challenges that impacted their stock performance. The renewable energy sector continues to show promise, especially in meeting the energy demands of artificial intelligence processes. It will be interesting to see how these trends continue to evolve in the coming weeks.
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