S&P 500 Gains and Losses Today: Royal Caribbean Stock Soars as Profits Top Forecasts

Investopedia
29 Jan

Key Takeaways

  • The S&P 500 added 0.9% on Tuesday, Jan. 28, 2025, bouncing back from the prior day's selloff in advance of the Fed's interest-rate decision on Wednesday.
  • Royal Caribbean shares surged as the cruise operator beat quarterly profit estimates and issued an upbeat 2025 forecast, citing strong bookings, pricing, and onboard revenue.
  • General Motors reported a quarterly loss, reflecting impacts from restructuring in China and the discontinuation of its robotaxi program, and the automaker's shares dropped.

Major U.S. equities indexes pushed higher Tuesday, recouping some of the losses suffered a day earlier after artificial intelligence uncertainties hammered the tech sector. The bounce ack for stocks came ahead of Wednesday's interest-rate announcement by the Federal Reserve.

The S&P 500 advanced 0.9%. The recovery in tech stocks bolstered the Nasdaq Composite, which surged 2%. The blue-chip Dow ended 0.3% higher.

Cruise liner Royal Caribbean (RCL) reported better-than-expected profits for the fourth quarter and issued an upbeat outlook for 2025, highlighting positive trends in bookings, record price levels, gains in onboard revenue, and new river cruise itineraries. Royal Caribbean shares sailed 12% higher, securing Tuesday's top performance in the S&P 500 and notching an all-time high. Shares of fellow cruise operators Carnival (CCL) and Norwegian Cruise Line Holdings (NCLH) gained 8.1% and 7.8%, respectively.

Shares of cybersecurity firm CrowdStrike Holdings (CRWD) surged 9.3% to a record high after Chinese AI startup DeepSeek said it had suffered a large-scale cyberattack. The incident raised awareness about the vulnerabilities of AI platforms and the possibility of bad actors leveraging AI for malicious actions, suggesting opportunities for cybersecurity providers. CrowdStrike also announced that its Falcon cybersecurity platform received 100% detection, prevention, and accuracy scores in a major real-world ransomware test.

Invesco (IVZ) shares jumped 9% after the investment management firm topped quarterly sales and profit estimates. Robust inflows boosted Invesco's assets under management and contributed to growth in fee income. Demand for exchange-traded funds and expansion in the Asia Pacific region helped drive the strong performance.

Although Lockheed Martin (LMT) topped adjusted earnings estimates for the fourth quarter, its net sales declined year-over-year and missed forecasts. The aerospace and defense giant issued lower-than-expected profit guidance for 2025, reflecting delays to the F-35 fighter jet program. Defense contractors have seen strong weapons demand amid elevated global tensions but face continued supply chain issues, while efficiency initiatives under the new presidential administration have also affected sentiment around defense spending. Lockheed Martin shares fell 9.2%, losing the most of any stock in the S&P 500.

General Motors (GM) shares tumbled 8.9% after the carmaker posted an unexpected net loss for the fourth quarter. Significant one-time charges related to restructuring in China and shutting down the Cruise robotaxi project weighed on the results. GM exceeded expectations on revenue and adjusted earnings per share, and assuming the policy environment in North America remains stable, the company expects profit growth in 2025.

Hewlett Packard Enterprise (HPE) shares dropped 6.5% following reports that the Justice Department could block the IT services firm's $14 billion acquisition of networking infrastructure provider Juniper Networks (JNPR). Regulators in the European Union already approved the transaction. HPE would be liable for termination fees if the deal fails to come to fruition. Shares of Juniper Networks sank 6.1%.

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