The S&P 500 Gains and Losses Today: Super Micro Stock Soars After Price Target Boost
Key Takeaways
- The S&P 500 added 1.0% on Monday, May 6, 2024, with jobs data released at the end of last week buoying expectations for interest rate cuts.
- Super Micro Computer shares moved higher after Barclays analysts lifted their price target on the stock, reiterating the data storage provider’s AI potential.
- Shares of Tyson Foods sank as the meatpacking company warned inflation and high commodity costs could weigh on its performance.
Major U.S. equities indexes climbed to start the new trading week. Momentum carried over from the end of last week, when Friday’s jobs report showed a slower-than-expected pace of hiring in April boosted hopes that the Federal Reserve might cut interest rates in the coming months. Investors will be on the lookout for more signals about the central bank’s intentions when Fed officials speak this week, while several key companies are set to release quarterly results as we near the end of earnings season. The S&P 500 added 1.0% on the day. The Nasdaq was up 1.2%, boosted by tech sector outperformance, and the Dow gained 0.5%.
Super Micro Computer Up As Analysts Boost Price Target
Shares of high-performance storage and server provider Super Micro Computer (SMCI) topped the S&P 500, jumping 6.1% after Barclays boosted its price target on the stock. Analysts highlighted expected revenue growth, supply chain improvements, and artificial intelligence (AI) opportunities as reasons for bullishness. Monday’s gains mark a recovery from heavy losses posted last week after Supermicro’s earnings report raised questions about its potential to benefit from AI.
Airline Stocks Soared, Except for Spirit Airlines
Airline stocks were on the move in Monday’s session. Spirit Airlines (SAVE) shares plunged 9.7% after the discount carrier reported its tenth consecutive quarterly loss and issued lower-than-expected guidance for the current quarter, citing stiff competition. Meanwhile, shares of competing airlines soared, led by American Airlines (AAL) with gains of 5.8%. Shares of Southwest Airlines (LUV) and United Airlines (UAL) were up 4.9% and 4.5%, respectively.
Quanta Services Stock Rise on Improved Guidance
Shares of electric infrastructure provider Quanta Services (PWR) added 5.1% on Monday. The company raised its full-year sales and profit outlook last week, citing robust demand for construction and engineering services from the electric power and renewable energy industries.
Tyson Stock Slips After CEO Warns of Economic Headwinds
Tyson Foods (TSN) shares suffered the day’s steepest losses in the S&P 500, plunging 5.7% after the meatpacker said inflationary pressures and high commodity costs could weigh on its performance. Tyson’s second-quarter profits beat forecasts, but softness in the pork and prepared foods divisions showed headwinds in the current quarter.
Amgen Gives Back Some of Last Week’s Gains
Shares of Amgen (AMGN) slipped 3.8%, giving back a portion of the 11.8% gains posted Friday amid enthusiasm about the biotech firm’s experimental weight-loss drug MariTide. Although there is speculation MariTide could compete with blockbuster anti-obesity medications already on the market, investors will have to wait until the end of the year for more detailed data from a mid-stage clinical study.
Walgreens Struggles to Keep Up With Changing Spending Habits
Walgreens Boots Alliance (WBA) shares fell 3.1%. The pharmacy giant is in the midst of a strategic review designed to turn around its business. Although Walgreens has made some progress on lowering costs and reducing debt, it faces challenges related to decreased consumer spending and a significant unpaid tax liability.
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