The trading day was largely uneventful until the final 10 minutes, when a surge of buying interest pushed the S&P 500 to a new record high at 6,129. The Dow Jones Industrial Average also ended at its highest point for the day with a fractional gain, while the Nasdaq Composite closed 0.1% higher. Despite the major indices trading lower earlier, a positive bias beneath the surface acted as a catalyst for further buying in the final moments.
These economic indicators elicited muted responses from the equity market.
Losses in some mega-cap stocks were a limiting factor throughout the session. Notable laggards included:
These stocks affected their respective S&P 500 sectors, with communication services falling by 1.3% and consumer discretionary down by 0.5%. Conversely, the energy sector saw the largest gain, driven by rising oil prices, which closed at $71.81 per barrel, up 1.13 (+1.6%).
Overseas market performance included:
Barrow, Hanley, Mewhinney & Strauss has made the following transactions:
Wasatch International Growth has made the following transactions:
Intel (INTC, Financial) saw a significant 16% rise in its stock price following reports that Taiwan Semiconductor (TSM, Financial) and Broadcom (AVGO, Financial) are exploring potential acquisitions of parts of the chipmaker. Additionally, Silver Lake Management is in exclusive talks to acquire a majority stake in Intel's Altera unit, further boosting investor interest. These developments indicate a potential reshaping of the semiconductor landscape.
Bill Ackman (Trades, Portfolio), head of Pershing Square Capital Management, announced plans for a transformative deal, drawing parallels to Warren Buffett (Trades, Portfolio)'s acquisition of Berkshire Hathaway. Howard Hughes Holdings (HHH, Financial) shares rose 5.2% after Ackman's hint of a deal, following a proposal to acquire additional shares at $85 each, potentially giving his firm a majority stake. This move could significantly impact the real estate development sector.
Amazon (AMZN, Financial) discontinued its TikTok-style shopping service, Inspire, as part of its strategy to align features with customer preferences. The service, launched in 2022, was available in the mobile app and featured an endless scroll of product videos and images. The decision reflects Amazon's focus on optimizing its platform for user needs.
Arista Networks (ANET, Financial) reported strong fourth-quarter results, with shares rising 2.8% in extended trading. The company's revenue increased by 25% year-over-year, driven by the ongoing artificial intelligence spending boom. Arista's performance highlights the growing demand for AI-related networking solutions.
Alibaba (BABA, Financial) continued its upward momentum, gaining 1.8% and marking eight consecutive sessions of growth. The stock has surged over 50% this year, buoyed by AI optimism and a potential partnership with Apple (AAPL, Financial) to integrate AI features into iPhones in China. This collaboration could enhance Alibaba's market position.
Occidental Petroleum (OXY, Financial) reported a fourth-quarter Non-GAAP EPS of $0.80, surpassing estimates by $0.13, though its revenue missed expectations. The company's performance reflects ongoing challenges in the energy sector, despite beating earnings projections.
AT&T (T, Financial) continued its positive streak, with shares closing 0.75% higher, marking seven consecutive sessions of gains. The telecom giant's stock has risen over 14% this year, outperforming the S&P 500 Index. Analysts remain bullish on AT&T, citing successful debt reduction and strong shareholder returns.
Strategy (formerly MicroStrategy) announced plans to offer $2 billion in convertible senior notes due 2030. The notes will be senior, unsecured obligations and will not bear regular interest. This move is part of Strategy's efforts to strengthen its financial position through strategic financing initiatives.
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