The S&P 500 Gains and Losses Today: Paramount Sinks as Shareholder Critiques Skydance Bid

Key Takeaways

• The S&P 500 ticked less than 0.1% lower on Monday, April 8, 2024, opening a week of trading that will feature key inflation data and the first big reports of earnings season.
• Paramount Global shares fell after Matrix Asset Advisors criticized a possible deal with Skydance Media, saying it would disproportionately benefit controlling shareholder Shari Redstone.
• Shares of Albemarle, the world’s largest lithium producer, posted the day’s top performance among S&P 500 stocks.

Major U.S. equities indexes were mixed and mostly flat on Monday ahead of the Consumer Price Index (CPI) report and the onset of earnings season later in the week. The S&P 500 and the Dow ended the day with losses of less than 0.1%, while the Nasdaq closed with minimal gains.

Paramount Global Faces Criticism

Shares of Paramount Global (PARA) sank 7.6%, marking the widest losses among S&P 500 stocks, after major shareholder Matrix Asset Advisors sent a letter to the board of directors criticizing a potential merger with Skydance Media. The letter claims Skydance’s bid provides a premium to controlling shareholder Shari Redstone at the expense of Paramount’s non-controlling shareholders.

Analysts at Stifel slightly boosted their price target on CF Industries (CF) stock, but shares of the fertilizer maker fell 6.3%. Although there are signs of strong nitrogen demand in North America, demand remains soft outside the region.

Solventum (SOLV) shares dropped 4.4% after Wells Fargo initiated coverage on the stock with an “equal weight” rating. According to the analysts, the health care business faces high initial debt levels following its recent separation from 3M (MMM) which could limit its ability to pursue strategic acquisitions.

Albemarle Leads in Performance

Shares of Albemarle (ALB), the world’s largest lithium producer, were the top performer on the S&P 500, gaining 6.7% on Monday. Although the stock has been pressured this year by slumping lithium prices and uncertain demand for electric vehicles (EVs), Albemarle is poised to benefit if prices recover. Last week, the company announced the opening of its Battery Materials Innovation Center in Kings Mountain, North Carolina.

Although GE Vernova (GEV) stock fell since its spinoff last week, shares recovered Monday after JPMorgan upgraded the stock to “overweight.” The analysts are bullish following the recent declines and believe the company could boost equipment bookings amid rising demand for electricity. GE Vernova shares jumped 5.9% on the day.

Real Estate Investment Trusts Soar

Blackstone, the world’s largest asset manager, helped boost real estate investment trusts (REITs) when it announced a $10 billion all-cash deal to take Apartment Income REIT (AIRC) private. AIRC shares jumped 22.4%, while shares of fellow REIT Camden Property Trust (CPT) gained 5.7% following the news.

Tesla (TSLA) shares added 4.9% after CEO Elon Musk posted that the EV maker would unveil its robotaxi in August. Musk announced the robotaxi after denying reports that Tesla was abandoning plans to produce a lower-cost EV model last week.

Overall, Monday’s trading session saw a mix of gains and losses among S&P 500 stocks, with notable performances from Albemarle and Paramount Global. Investors will be closely watching upcoming inflation data and earnings reports as the week progresses.

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