Equity Indexes Wrap: Palo Alto Tanks Cybersecurity Stocks, While Chesapeake Lifts Energy Peers
February 21, 2024 04:14 PM EST
The Dow
Nike (NKE) rose 1.9% to lead the index’s gainers. It was followed by Dow (DOW) and Verizon (VZ), up 1.9% and 1.5%, respectively.
Walgreens Boots Alliance (WBA) fell 2.5% after S&P Dow Jones Indices booted the company from the Dow Jones Industrial Index after 6 years in the blue-chip benchmark. Walgreens will be replaced by Amazon (AMZN) next Monday.
Intel Corp. (INTC) fell 2.4% despite announcing its made-to-order chip foundry business had snagged Microsoft, a major win as it seeks to take on leader Taiwan Semiconductor Manufacturing Co. (TSM).
Tech peers followed Intel lower, with International Business Machines (IBM) falling 2%, Salesforce (CRM) down 1%, and Microsoft (MSFT) losing 0.2%.
Boeing (BA) shares slid 0.9% following reports the jet maker had ousted the head of its 737 Max program amid scrutiny of the company’s safety standards.
The S&P 500
EQT Corp. (EQT) rose 10.6% after competitor Chesapeake Energy (CHK) said it would slash natural gas production this year, sending gas futures soaring off of three-year lows. Energy peers Coterra (CTRA) and ConocoPhillips (COP) advanced 6.3% and 3.1%, respectively.
Amazon rose 0.9% after being named to the 30-stock Dow. Alphabet (GOOGL) also managed to gain, tacking on 1%.
KeySight Technologies (KEYS) fell 6.7% after its fourth-quarter sales fell short of analyst estimates, overshadowing better-than-expected earnings.
First Solar (FSLR) slipped 2.1% after competitor SolarEdge (SEDG) missed earnings estimates and offered disappointing current-quarter sales guidance amid a prolonged slump in solar demand. Peer Enphase Energy (ENPH) fell 1%.
The Nasdaq 100
Exelon Corp. (EXC) rose 4.3% after the electric and gas utility topped Wall Street estimates with its fourth-quarter earnings. Peer American Electric Power (AEP) added 2.1%.
Palo Alto Networks (PANW) tumbled 28.4%, its biggest one-day decline ever, after lowering its full-year billings and revenue guidance, and warning of “spending fatigue” among customers. Its competitors in the cybersecurity industry fell with it. ZScaler (ZS) lost 14.1%, while CrowdStrike Holdings (CRWD) fell 9.7% and Fortinet (FTNT) dropped 3.8%.
Nvidia (NVDA) slumped 2.9% ahead of its earnings report after the bell. Analysts and investors alike expressed concern that sky-high expectations left the AI chip leader room for nothing short of perfection. Fellow chip makers Advanced Micro Devices (AMD) and Broadcom (AVGO) slid 0.8% and 0.2%, respectively.
HSBC Profit Plunges on $3 Billion Write-down of Stake in Chinese Bank
February 21, 2024 03:44 PM EST
HSBC Holdings PLC’s (HSBC) American depositary receipts (ADRs) fell Wednesday after the British bank’s write-down of its stake in a large Chinese lender dragged its quarterly profit lower.
The London-based bank, which makes most of its earnings from Asia, said its fourth-quarter pretax profit plunged to $1 billion from $5.05 billion in the year-earlier period after it took an impairment charge of $3 billion related to its investment in China’s Bank of Communications.
HSBC also took a $2 billion charge on the sale of its French retail operations during the quarter.
Revenue dropped 11% to $13 billion during the latest quarter compared with the previous year, due to the sale of the French banking businesses, as well as charges for Argentina’s hyperinflation.
HSBC’s ADRs were changing hands at $37.30, off 8.7% shortly before markets closed Wednesday. They’ve fallen around 8% so far this year.
Nvidia Stock Drops Ahead of High-Stakes Earnings
February 21, 2024 02:49 PM EST
Nvidia (NVDA) shares lost ground Wednesday for the fourth consecutive session ahead of an eagerly anticipated earnings report from a company that has been an investor darling amid expectations that it will continue to be a prime beneficiary of the artificial intelligence (AI) boom.
Nvidia shares, which have more than tripled over the past year, were down 3.6% at $670 Wednesday afternoon. The stock, which had hit a record closing high of $739 last Wednesday, fell 4.4% on Tuesday, its biggest single-day drop since October.
Investors have come to expect only the best from Nvidia, so anything less than a blowout earnings report with strong guidance could be perceived negatively by market…
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