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Key Takeaways
- The S&P 500 gained 0.9% on Thursday, May 2, 2024, as concerns subsided about a possible rate hike and ahead of Friday’s jobs report.
- Paramount Global shares gained amid reports of a joint acquisition bid from Sony Pictures and Apollo Global Management.
- Shares of Etsy tumbled after the e-commerce platform said subdued consumer discretionary spending could restrain growth.
Major U.S. equities indexes pushed higher the day after the Federal Reserve announced its latest policy decision, holding the fed funds rate steady for the sixth straight meeting. Although the path toward lower interest rates remains uncertain, Fed Chair Jerome Powell reassured the markets by dismissing the probability of a rate hike.
The S&P 500 and the Dow both ended Thursday with gains of 0.9%. Tech stocks outperformed ahead of the post-market earnings release from Apple ( AAPL ), helping the Nasdaq jump 1.5%.
Howmet Aerospace Soars on Commercial Sales
Howmet Aerospace ( HWM ) shares led the S&P 500 higher, soaring 15.5% after the maker of jet engine components beat analysts’ estimates with its first-quarter revenues and profits. Increasing commercial aerospace sales helped drive the strong results. Despite a slowdown in 737 Max production related to quality issues at Boeing ( BA ), Howmet increased its full-year earnings guidance , highlighting a tailwind from strong air travel demand.
Reports of Deal with Sony, Apollo Push Paramount Higher
Paramount Global ( PARA ) shares gained 13.1% amid reports that Sony Pictures and private equity firm Apollo Global Management submitted a letter offering to acquire the entertainment giant for $26 billion. Paramount Global remains in exclusive acquisition talks with production company Skydance Media, but the period of exclusivity is set to expire on Friday.
Moderna Shares Shoots Up on RSV Vaccine
Shares of Moderna ( MRNA ) shot 12.7% higher after the biotech company posted a narrower-than-expected loss for the first quarter. The company benefitted from cost-cutting initiatives, while sales of its COVID-19 vaccine exceeded forecasts. Moderna expects its vaccine against respiratory syncytial virus (RSV) to receive approval in the U.S. later this month.
C.H. Robinson Jumps on Better-Than-Expected Earnings
Logistics and shipping company C.H. Robinson Worldwide ( CHRW ) topped first-quarter profit and sales estimates, and its shares gained 12.3%. Although the market environment for freight transportation remains challenging, C.H. Robinson has been working to increase its market share and improve its efficiency through the implementation of a “lean-based” operating model.
Etsy Falls Most in S&P 500 on Quarterly Results
The weakest performance in the S&P 500 belonged to shares of Etsy ( ETSY ), which plummeted 15.0% after the online crafts marketplace posted its quarterly results. Revenue and earnings per share (EPS) matched analysts’ estimates but fell year over year, and Etsy warned that subdued consumer discretionary spending represents a growth headwind.
Qorvo Stock Falls on Weakened iPhone Sales
Qorvo ( QRVO ) shares fell 14.5% after the provider of radiofrequency chips to Apple and other tech manufacturers guided current-quarter sales and profits below expectations . The soft forecast comes amid a challenging environment for iPhone sales, especially in China, where Apple faces tough competition from local smartphone producers.
Huntington Ingalls Down on Profit Margins
Shares of military shipbuilder Huntington Ingalls ( HII ) fell 11.5%. Although the company reported better-than-expected quarterly sales and profits, driven by strong demand for submarines and aircraft carriers amid escalating global tensions, profit margins came in below company forecasts. Huntington also faces challenges related to labor retention and program delays.