The Market Recap: S&P 500 Gains, Wells Fargo Slips, and Enphase Energy Shines
Market Rebounds After Tech Sector Selloff
After a brief pause in the market rally, major U.S. equities indexes bounced back on Friday, July 12, 2024. The tech sector, which experienced a selloff earlier in the week, rebounded in the final trading session. The positive momentum was also fueled by the start of earnings season, with several large financial institutions reporting their quarterly results.
The S&P 500 added 0.6% on Friday, partially recovering from the previous day’s downturn and ending just below its record close. The Nasdaq also saw a 0.6% increase, staying below its all-time peak. The Dow, after hitting an intraday record, closed 0.6% higher, surpassing the 40,000 mark for only the second time in history.
Enphase Energy Shines with New Solar Equipment
Enphase Energy (ENPH) shares stood out on Friday as the company launched new U.S.-made residential and commercial solar equipment. This new equipment will help customers qualify for federal tax credits, specifically the Domestic Content Bonus Credit under the Inflation Reduction Act. Enphase Energy’s stock surged by 6.9%, making it the top-performing S&P 500 stock for the day.
Banking Giants Report Mixed Earnings
While some banks reported positive earnings results, others faced challenges. Bank of New York Mellon (BK) saw its shares soar by 5.2% to reach an all-time high after posting better-than-expected revenues and profits for the second quarter. Despite a year-over-year decline in net interest income, the bank’s overall performance exceeded forecasts.
On the other hand, Wells Fargo (WFC) experienced a sharp decline of 6.1% after reporting a decrease in net interest income. This overshadowed the bank’s better-than-expected revenue and earnings per share results. The banking sector has been grappling with pressure on net interest income due to higher deposit rates and increased competition for customer deposits following the regional bank crisis in 2023.
Ford Drives Higher with EV Financing Offer
Ford (F) shares rose by 4.2% after the automaker introduced a 0% financing offer on leases for two of its popular electric vehicles, the Mach-E and F-150 Lightning. This move comes in response to Tesla’s (TSLA) favorable financing deal on its Model Y vehicle in May as both companies vie for a stronger position in the electric vehicle market.
Delta Air Lines Faces Challenges
Delta Air Lines (DAL) saw its shares drop by 3.1% as the airline missed second-quarter profit estimates. Factors contributing to this decline included increased capacity limiting fare prices and higher costs. Concerns about the summer travel season further weighed on Delta’s stock performance.
Conclusion
Overall, Friday’s market performance showcased a mix of positive and negative outcomes for various sectors and companies. While some stocks surged on positive news and strong earnings reports, others faced challenges that led to declines in their share prices. As investors continue to navigate through earnings season and monitor economic indicators, market volatility is likely to persist in the coming weeks.
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