Market Rebound
The stock market exhibited a rebound today after last week's declines. Mega-cap stocks and semiconductor shares led the upside action after underperforming last week. The S&P 500 settled 1.1% higher, and the Invesco S&P 500 Equal Weight ETF (RSP) settled 0.8% higher.
Influential Winners
Several influential stocks saw significant gains:
- NVIDIA (NVDA) closed at 123.54, up 4.7%
- Meta Platforms (META) closed at 487.40, up 2.2%
- Microsoft (MSFT) closed at 442.94, up 1.3%
With today's action, NVDA shares are flat so far in July, META shares are down 3.3% in July, and MSFT is 0.9% lower in July.
Sector Performance
Nine of the 11 S&P 500 sectors logged gains. The leading sectors included:
- Information Technology: +2.0%
- Communication Services: +1.2%
- Industrial: +1.1%
- Real Estate: +1.0%
Meanwhile, the energy sector logged the biggest decline amid falling oil prices ($78.43/bbl, -0.26, -0.3%).
Political News
Market participants are also digesting news that President Biden exited the 2024 presidential race and endorsed Kamala Harris for the candidacy. The news garnered muted responses in the equity and bond markets.
Bond Market
The 10-yr note yield settled two basis points higher at 4.26%, and the 2-yr note yield settled one basis point higher at 4.52%.
Economic Data
There was no US economic data of note today. Looking ahead, Tuesday's economic data is limited to the June Existing Home Sales report at 10:00 ET.
Upcoming Earnings
Companies reporting earnings ahead of Tuesday's open include:
- General Motors (GM, Financial)
- UPS (UPS)
- Albertsons (ACI)
- Lockheed Martin (LMT)
- Coca-Cola (KO)
- Philip Morris International (PM)
Market Performance
Year-to-date performance of major indices:
- Nasdaq Composite: +20.0%
- S&P 500: +16.7%
- S&P Midcap 400: +9.7%
- Russell 2000: +9.6%
- Dow Jones Industrial Average: +7.2%
Overseas Markets
Performance of major overseas indices:
- Europe: DAX +1.4%, TSE +0.5%, CAC +1.2%
- Asia: Nikkei -1.3%, Hang Seng +1.3%, Shanghai flat
Commodities
Commodities performance:
Today's News
SAP (SAP, Financial) shares rose 4.4% in extended-hours trading after the European software giant reported second-quarter results and guidance that were largely in-line with expectations. SAP earned an adjusted €1.10 per share, with revenue rising 9.8% year-over-year to €8.29B. Cloud revenue was €4.15B, and the current cloud backlog increased 28% to €14.8B. Analysts had expected $1.08 per share on $8.98B in revenue. SAP projects full-year cloud revenue between €17B and €17.3B, a 24% to 27% increase.
Warner Bros. Discovery (WBD, Financial) is matching a bid from Amazon (AMZN, Financial) for rights to show National Basketball Association games. WBD exercised a clause from its existing contract to match Amazon's $1.8B per year offer. The NBA's new 11-year, $76B deal also includes ESPN (DIS) and NBC (CMCSA), starting fall 2025. WBD's TNT and TBS networks have shown NBA games for decades.
NXP Semiconductors (NXPI, Financial) reported Q2 Non-GAAP EPS of $3.20, in-line with expectations. Revenue of $3.13B, down 5.2% year-over-year, beat estimates by $10M. The company's strong margins and management continue to position it well despite near-term uncertainties in the semiconductor sector.
Alexandria Real Estate Equities (ARE, Financial) posted Q2 FFO of $2.36, beating expectations by $0.02. However, revenue of $766.73M missed by $16.34M. The company updated its 2024 guidance, projecting FFO per share between $8.89 and $9.01, and maintaining a midpoint of $9.47.
Cleveland-Cliffs (CLF, Financial) reported Q2 Non-GAAP EPS of $0.11, beating forecasts by $0.11. Revenue of $5.09B, down 14.9% year-over-year, missed by $100M. The company shipped 4.0 million net tons of steel during the quarter.
Cerevel Therapeutics (CERE, Financial) rose 1.2% as optimism grew that the Federal Trade Commission will approve its planned sale to AbbVie (ABBV). The deal spread narrowed following a broker's optimistic view on the acquisition's regulatory approval.
Cadence Design Systems (CDNS, Financial) reported Q2 Non-GAAP EPS of $1.28, beating expectations by $0.05. Revenue was $1.06B, up 8.5% year-over-year, beating estimates by $20M. The company expects FY 2024 revenue between $4.60B and $4.66B and Non-GAAP operating margin between 41.7% and 43.3%.
Google (GOOGL, Financial) updated its "Privacy Sandbox" approach, deciding to offer a user-choice prompt instead of removing third-party cookies from its Chrome browser. This initiative aims to balance user privacy with an ad-supported internet, receiving mixed feedback from various stakeholders.
General Motors (GM, Financial) declared a $0.12/share quarterly dividend, maintaining its previous payout. The dividend is payable on September 19 to shareholders of record on September 6.
DraftKings (DKNG, Financial) sold VSiN to Musberger Media. The sports betting giant had purchased VSiN in 2021. The original founders will lead VSiN, which will continue delivering sports betting news and analysis through various channels.
Medpace (MEDP, Financial) reported Q2 GAAP EPS of $2.75, beating estimates by $0.22. Revenue was $528.1M, up 14.6% year-over-year, in line with expectations. The company forecasts 2024 revenue between $2.125B and $2.175B, representing 12.7% to 15.3% growth over 2023.
SentinelOne (S) gained 8% following a Microsoft (MSFT) outage caused by a CrowdStrike (CRWD) update. Investors showed renewed interest in specialized cybersecurity vendors like SentinelOne, which offers advanced AI capabilities and comprehensive security features.
Hawaiian Electric (HE) shares fell 14% after parties failed to reach a settlement agreement on lawsuits related to last year's Maui wildfires. The deadline has been extended until Wednesday, with Hawaii's Governor expressing dissatisfaction with the proposed terms.
STAG Industrial (STAG) shares continued their nine-day gain streak, closing 2.78% higher at $40.23. The stock has gained about 11% during this period, receiving positive ratings from analysts for profitability and growth prospects.
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