The stock market concluded a successful week with mixed results. The Nasdaq Composite edged up by 0.2%, reaching a new all-time high, primarily due to the performance of mega-cap stocks. Conversely, the S&P 500 and the Dow Jones Industrial Average experienced slight declines, closing down by 0.1% and 0.8%, respectively.
NVIDIA (NVDA, Financial) saw a significant increase of 3.1% after UBS upgraded its price target, leading the gains among the mega-cap companies. Other major contributors included Apple (APPL, Financial), Amazon.com (AMZN, Financial), Meta Platforms (META, Financial), and Alphabet (GOOG, Financial), which all supported the broader market’s performance.
The positive momentum in these stocks propelled the S&P 500 information technology and communication services sectors to lead the day’s gains.
On the downside, lululemon athletica (LULU, Financial) and NIKE (NKE, Financial) were among the S&P 500's biggest losers, both seeing sharp declines following disappointing future guidance. Tesla (TSLA, Financial) also lagged after reports of reduced production in its China plant amid slowing EV sales.
These declines contributed to the underperformance of the S&P 500 consumer discretionary sector. Additionally, the real estate and financial sectors also lagged behind the broader market.
Meanwhile, FedEx (FDX, Financial) stood out as the S&P 500's top performer after surpassing earnings expectations and announcing a new $5 billion share buyback program.
Small cap stocks underperformed, with the Russell 2000 index closing down by 1.3%. This was partly due to weakness in regional bank shares, impacting the SPDR Regional Banking ETF (KRE) which fell by 2.2%.
Treasury yields saw a decline, with the 2-year note yield dropping three basis points today and the 10-year note yield decreasing by five basis points.
The economic calendar for the upcoming Monday includes the February New Home Sales report, with no significant U.S. economic data released today.
Year-to-date performance highlights: - S&P 500: +9.7% - Nasdaq Composite: +9.4% - S&P Midcap 400: +7.5% - Dow Jones Industrial Average: +4.7% - Russell 2000: +2.2%
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Today's News
Cannabis stocks experienced a significant rally following Senate Majority Leader Chuck Schumer's encouragement for the SAFER Banking Act, with Canopy Growth (CGC, Financial) leading the surge with a 60% increase in its share price. Other cannabis companies such as Leafly (LFLY, Financial), Aurora (ACB, Financial), SNDL (SNDL, Financial), and Tilray (TLRY, Financial) also saw notable gains. Schumer's support for the federal legalization of cannabis in the US and the potential for banking service access for marijuana businesses has sparked optimism in the sector.
Alphabet (GOOG, GOOGL) saw its shares gain in premarket trading as Wedbush Securities lauded the tech giant's potential in generative AI, adding it to its Best Ideas List. The firm highlighted Alphabet's unmatched data breadth, massive user base, and AI-optimized infrastructure as key advantages. This comes as OpenAI, backed by Microsoft (MSFT, Financial), explores partnerships with Hollywood studios to integrate its AI video generator, Sora, into entertainment projects.
Nvidia (NVDA, Financial) announced the launch of its new Blackwell GPU platform at its annual GTC developer conference, prompting UBS to predict a new wave of demand for the company. Nvidia's advancements in AI and partnerships with sovereign nations are expected to significantly boost its revenue in the coming years.
Shares of Digital World Acquisition Corp (DWAC, Financial) fluctuated after shareholders approved the deal to take Trump Media & Technology public. Despite legal challenges, the approval marks a significant step forward for the company, with Donald Trump owning a major stake in the combined entity.
Masimo (MASI, Financial) announced its board's decision to evaluate a proposed separation of its consumer business, including products like the Stork baby monitor and the Freedom smart watch. The move aims to leverage Masimo's existing portfolio in the professional healthcare and telehealth markets.
Bill Holdings (BILL, Financial) experienced a stock price increase amid speculation of takeover interest. The company, which has a market cap of approximately $7 billion, has not disclosed the identity of the potential suitor.
Newmont (NEM, Financial) has initiated the sale of its Akyem gold mine in Ghana, attracting interest from potential bidders, including Chinese producers. The sale is part of Newmont's strategy to raise funds through divestitures following its acquisition of Newcrest Mining.
Reddit (RDDT, Financial) shares dipped below their opening price in the aftermath of their recent IPO, despite a significant fundraising effort and a content licensing deal with Google (GOOG, GOOGL).
Hawaiian Electric (HE, Financial) faced additional scrutiny from the U.S. House of Representatives regarding its wildfire mitigation plan in the wake of last year's deadly Lahaina wildfire. The company is being asked to provide more documents and answer further questions as part of the ongoing investigation.
Castor Maritime (CTRM, Financial) announced a 1-for-10 reverse stock split to comply with Nasdaq's listing rules, effective March 27, 2024. The move aims to stabilize the company's stock price and maintain its listing status.
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