The S&P 500: Winners and Losers on May 7, 2024

Key Takeaways

• The S&P 500 ticked 0.1% higher on Tuesday, May 7, 2024, holding on to its streak of winning sessions dating back to the middle of last week.
• Shares of FMC Corp. soared after the agricultural chemical provider issued strong full-year revenue guidance, forecasting a sales boost from new product launches.
• Building materials supplier Builders FirstSource reported a year-over-year decline in gross profit margin, and its shares tumbled.

Major U.S. equities indexes were mixed and little changed on Tuesday.

The S&P 500 edged 0.1% higher, keeping a streak of positive sessions dating back to the middle of last week amid renewed anticipation that the Federal Reserve could lower interest rates in the next few months. The Dow also eked out a gain of around 0.1%, but the tech-heavy Nasdaq slipped 0.1%.

FMC Corp. Leads S&P 500 on Revenue Guidance

Shares of FMC Corp. led the S&P 500, popping 9.5% after the agricultural sciences company issued better-than-expected full-year revenue guidance.

The provider of insecticides and other agricultural chemicals expects new products to drive robust revenue growth, the company said. FMC is also positioned to benefit from lower input costs, reduced interest expenses, and cost-saving initiatives.

International Flavors and Fragrances Jumps on EPS

International Flavors and Fragrances shares jumped 6.4%. The stock soared after the provider of ingredients for food, beverage, and personal care products reported better-than-expected first-quarter revenue and earnings per share (EPS).

Volume growth and productivity gains helped drive the strong performance, and the company highlighted successful measures to optimize its portfolio, including the divestment of its cosmetics ingredients business.

Kenvue Gains as It Exceeds Profit Expectations

Shares of Kenvue, the consumer health products business that completed its spinoff from Johnson & Johnson last year, gained 6.4% after the company’s first-quarter profits exceeded expectations.

Home to Tylenol, Listerine, and other well-known brands, Kenvue achieved strong sales growth in its self-care and essential care segments. The firm also announced plans to cut around 4% of its workforce as it aims to reduce costs.

Builders FirstSource Stock Falls Post-Earnings

Shares of Builders FirstSource posted the steepest losses of any S&P 500 stock, tumbling 19.1% in the wake of the building materials supplier’s first-quarter earnings report.

Although quarterly sales topped forecasts, net income fell short of estimates, and a shift in product mix toward lower-margin products contributed to a year-over-year drop in gross profit margin. Builders FirstSource also faces challenges related to higher mortgage rates limiting affordability and softness in the multi-family housing market.

Disney Shares Fall on Revenue Loss

Disney shares dropped 9.5% on Tuesday after the entertainment giant reported a quarterly net loss, reflecting the impact of hefty restructuring costs and other impairment charges.

Despite reporting a surprise profit in its direct-to-consumer entertainment segment, Disney provided a weak growth outlook for subscriptions and experiences. It does not expect core subscriber growth for the Disney+ streaming service during the current quarter.

Overall, the S&P 500 saw a mix of winners and losers on May 7, 2024. While some companies like FMC Corp. and International Flavors and Fragrances experienced significant gains due to positive earnings reports and revenue guidance, others like Builders FirstSource and Disney faced challenges that led to declines in their stock prices.

Investors will continue to monitor these developments closely as they navigate the ever-changing landscape of the stock market.

Read the original article on Investopedia.