26
Key Takeaways
- The S&P 500 added 0.2% on Wednesday, June 26, 2024, amid strength in the consumer discretionary sector and renewed momentum for tech stocks.
- FedEx shares popped higher after the parcel delivery firm posted better-than-expected quarterly results, driven by successful cost-cutting initiatives.
- Aptive shares dropped after analysts said a new joint venture between Volkswagen and EV maker Rivian could hurt sales of its smart vehicle products.
Major U.S. equities indexes edged higher in the midweek session, led by outperformance in the consumer discretionary sector and tech stocks that continued to regain momentum.
The S&P 500 closed 0.2% higher on Wednesday, marking the second straight winning session for the benchmark index. The Nasdaq was up 0.5%, while the Dow eked out a gain of less than 0.1%.
FedEx ( FDX ) shares soared 15.5%, marking Wednesday’s top performance of any S&P 500 stock. The package delivery giant reported better-than-expected sales and profits for its fiscal fourth quarter of 2024. The company’s CEO highlighted the success of its ongoing cost-cutting program and predicted that momentum will continue into the next fiscal year as FedEx enhances the flexibility and efficiency of its network.
Shares of Albemarle ( ALB ), the world’s largest lithium miner, surged 8.1% amid reports that the company will carry out additional auctions for the metal, which is a key component in electric vehicle (EV) batteries. Albemarle is reportedly aiming to increase transparency in the lithium market and shore up its contracts with carmakers.
Tesla ( TSLA ) shares jumped 4.8% after investment banking firm Stifel initiated coverage of the stock with a “buy” rating. Analysts highlighted Tesla’s potential to deliver solid growth from the revamp of existing car models and new model launches, as well as opportunities for its full self-driving (FSD) technology.
Amazon ( AMZN ) shares added 3.9% after Bank of America boosted its price target on the stock, saying the e-commerce giant could benefit from increased efficiency and margin expansion this year. Wednesday’s gains sent Amazon’s market capitalization over $2 trillion for the first time in the company’s history, making it the fifth U.S. company to reach that milestone.
Moderna ( MRNA ) shares plunged 11.0%, enduring the heaviest losses in the S&P 500, after the biotech firm said its vaccine to protect against respiratory syncytial virus (RSV) was around 50% effective after 18 months. This means Moderna’s product, which received approval from the Food and Drug Administration (FDA) last month, is comparatively less effective than competing vaccines launched by rivals GSK ( GSK ) and Pfizer ( PFE ).
Shares of automotive technology provider Aptiv ( APTV ) plummeted 7.9% after Piper Sandler downgraded the stock to “underweight” and cut its price target. Analysts said a newly announced joint venture between Volkswagen ( VWAGY ) and EV maker Rivian ( RIVN ) to develop vehicle software and electrical components could limit sales opportunities for Aptiv’s smart vehicle architecture. Rivian shares skyrocketed 23.2% following the announcement.
Shares of Paychex ( PAYX ) fell 6.1% after the payroll services provider released its quarterly earnings report. Although sales and profits were roughly in line with analysts’ expectations, the company issued an underwhelming forward outlook, noting small and medium-sized businesses face operating challenges related to the jobs market, regulations, and inflation.