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Key Takeaways
- The S&P 500 inched 0.1% higher on Tuesday, July 9, 2024, as Fed Chair Jerome Powell struck an optimistic tone about cooling inflation in Congressional testimony.
- Tesla shares pushed higher for the tenth straight session following strong delivery results and amid buzz surrounding its upcoming robotaxi launch.
- Shares of lithium producer Albemarle moved lower as Baird analysts trimmed their price target on the stock, citing soft lithium prices.
Major U.S. equities indexes were mixed and little changed during the first of two days of Congressional testimony by Federal Reserve Chair Jerome Powell.
Appearing Tuesday before the Senate Banking Committee, Powell applauded progress on inflation but suggested the central bank hopes to see additional signals of price increases declining toward its 2% target.
Both the S&P 500 and the Nasdaq edged higher by approximately 0.1%. With Tuesday’s minimal gains, the benchmark index and its tech-heavy peer extended a string of record closes dating back to early last week. The Dow ticked down roughly 0.1% on Tuesday,
Incyte ( INCY ) shares gained 4.4% on Tuesday after the pharmaceutical firm announced the issuance of restricted stock units (RSUs) and stock options to new employees. These employee awards could be a positive indicator of Incyte’s ability to attract and retain talent.
Shares of Corning ( GLW ) advanced 3.8% on Tuesday, adding to gains posted in the previous session after the specialty glass manufacturer boosted its revenue and profit outlook. The firm highlighted strong demand for its optical connectivity products, which have proven useful in powering networks that run generative artificial intelligence (AI) applications. The solid two-day performance makes Corning the latest stock to benefit from high expectations for AI-driven growth.
Tesla ( TSLA ) shares drove 3.7% higher, marking the tenth consecutive winning day for the electric vehicle (EV) maker’s stock. The string of gains kicked into gear early last week as Tesla topped estimates for second-quarter vehicle deliveries. Upcoming catalysts could include Tesla’s earnings report, which is set to be released after the closing bell on July 23, as well as an Aug. 8 event when the company is expected to launch its long-awaited robotaxi.
Shares of Albemarle ( ALB ), the world’s largest lithium producer, tumbled 8.8% after Baird lowered its price target on the stock. According to analysts, lithium prices have remained on the lower end of expectations, which could pressure Albemarle’s second-quarter results. Analysts also pointed to uncertainties surrounding the U.S. presidential election, with the outcome likely to shape future developments on tax credits and other policies related to the EV market, a key driver of demand for lithium batteries.
Shares of Lamb Weston Holdings ( LW ), which produces frozen French fries and other potato products, dropped 4.5% amid reports of a class-action lawsuit filed against the company. The complaint alleges Lamb Weston misled investors by downplaying problems related to the implementation of a new enterprise resource planning (ERP) system earlier this year.