Stocks experienced mixed trading on Thursday after reaching record highs in the previous session. The S&P 500 saw a marginal increase of 0.01%, while the tech-heavy Nasdaq Composite gained 0.1%. Conversely, the Dow Jones Industrial Average declined by 0.28%, and the Russell 2000 Index fell 0.69%. Meanwhile, Bitcoin surged 2.5%, breaking above the $100,000 mark for the first time. While crypto stocks rallied in premarket trading, this momentum waned by midday.
Table Content:
Notable S&P 500 Movers
Several S&P 500 stocks experienced significant midday fluctuations. The top performers included:
- Brown-Forman (BF.B): +11.3%
- Moderna (MRNA): +5.1%
- United Airlines (UAL): +4.8%
- Delta Air Lines (DAL): +4.3%
- Tesla (TSLA): +4.1%
Conversely, the biggest decliners were:
- Synopsys (SNPS): -12.0%
- Uber (UBER): -7.3%
- Ball Corp (BALL): -6.4%
- Cadence Design Systems (CDNS): -5.5%
- Ansys (ANSS): -5.2%
Other noteworthy stock movements included:
- Nvidia (NVDA): +0.3%
- Amazon (AMZN): +1.8%
- Dollar General (DG): -2.2%
- Hewlett Packard Enterprise (HPE): +1.4%
- UnitedHealth (UNH): -4.2%
Tesla Stock Price Target Raised by Bank of America
Tesla stock gained 4% midday following Bank of America analyst John Murphy’s increased price target from $350 to $400, maintaining a buy rating. After visiting Tesla’s Texas Gigafactory, Murphy expressed increased confidence in Tesla’s growth prospects for 2025 and beyond, citing their core EV business, robotaxi initiatives, and the Optimus robot. CEO Elon Musk previously touted Optimus as “the most advanced humanoid robot by a long shot.” Murphy anticipates increased resource allocation to Optimus as robotaxi technology matures. He also sees potential for margin improvement, shifting from hardware-driven margins to more software-driven margins with the growth of Full Self Driving.
Dollar General Stock Dips After Mixed Earnings Report
Dollar General stock declined 2.2% after reporting earnings that missed estimates and a narrowed outlook. Adjusted earnings per share were 89 cents, falling short of the 94-cent Wall Street forecast. Sales reached $10.2 billion, a 5% year-over-year increase, surpassing the $10.14 billion consensus estimate. However, the company narrowed its fiscal 2024 EPS outlook to $5.50-$5.90, down from the previous $5.50-$6.20. Dollar General’s real estate projects include opening 575 new stores and remodeling 2,000 existing locations in the U.S., aiming to enhance customer experience and drive sales growth.
HP Enterprise Upgraded by Morgan Stanley
HP Enterprise stock rose 1.4% midday following a Morgan Stanley upgrade from equal weight to overweight, with a price target increase from $23 to $28. Morgan Stanley views HP Enterprise’s proposed acquisition of Juniper Networks, an AI-networking-products provider, as a compelling short-term catalyst. They highlight Juniper’s emergence from inventory digestion and its acquisition of new cloud customers. The $14 billion all-cash acquisition, announced in early 2024, is expected to close in late 2024 or early 2025, pending regulatory approvals.
Conclusion: Market Volatility and Key Stock Movements
This trading session showcased market volatility, with major indices experiencing mixed performance following record highs. Bitcoin’s surge past $100,000 marked a significant milestone for the cryptocurrency. Individual stock movements were driven by analyst upgrades, earnings reports, and ongoing developments in key sectors. Companies like Tesla and HP Enterprise benefited from positive analyst outlooks, while Dollar General faced pressure after mixed earnings. These market dynamics underscore the importance of staying informed and adapting investment strategies accordingly.
