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Key Takeaways
- The S&P 500 dropped 1.6% on Tuesday, April 30, 2024, cementing its first monthly loss of the year as data on wage growth reignited inflation concerns.
- GE HealthCare Technologies fell short of quarterly sales and profit estimates, and sales of the medical device maker tumbled.
- Leidos shares took off after the aviation and defense technology firm topped first-quarter estimates and boosted its guidance.
Major U.S. equities indexes tumbled after a report from the Bureau of Labor Statistics showed a higher-than-expected jump in employee compensation during the first quarter of 2024. The accelerated wage growth was the latest data point suggesting the Federal Reserve may have more work to do as it aims to suppress inflation.
The S&P 500 fell 1.6% on Tuesday, wrapping up April in negative territory to complete the first losing month for the benchmark index since October. The Dow and the Nasdaq lost 1.5% and 2.0%, respectively.
GE HealthCare ( GEHC ) shares posted the widest losses of any S&P 500 stock, plunging 14.3% after the company reported weaker-than-expected sales and profits for the first quarter. The provider of medical devices reported year-over-year revenue declines in its Imaging, Ultrasound, and Patient Care Solutions segments, while its spending on research and development (R&D) moved higher.
Although Molson Coors ( TAP ) reported strong first-quarter results, beating top- and bottom-line predictions, the brewer maintained its muted guidance for the year, citing weakness in the U.S. and Canadian markets. Molson Coors shares slid 9.9% on Tuesday.
Warner Bros Discovery ( WBD ) shares tumbled 9.7%. Reports said the entertainment giant’s broadcasting deal with the National Basketball Association (NBA) might be in jeopardy after its exclusive negotiating period with the league expired last week. NBCUniversal, which belongs to rival conglomerate Comcast ( CMCSA ), reportedly offered $2.5 billion per year for the rights to air NBA games.
Shares of Leidos Holdings ( LDOS ) soared 6.5%, marking Tuesday’s top performance in the S&P 500, after the provider of aviation and defense technology beat first-quarter sales and profit forecasts while lifting its full-year guidance. A sharp year-over-year increase in net income margin suggests that Leidos has seen success with its initiatives to cut costs and boost operational efficiencies.
Eli Lilly ( LLY ) shares jumped 6.0% after the pharmaceutical giant reported better-than-expected first-quarter earnings and boosted its full-year revenue guidance by $2 billion. Strong demand for diabetes and weight-loss treatments Mounjaro and Zepbound helped drive year-over-year revenue growth in the quarter, and the drugs remain central to Lilly’s lofty sales expectations for the rest of the year.
First-quarter profit and sales results from heating, ventilation, and air conditioning (HVAC) manufacturer Trane Technologies ( TT ) exceeded expectations, and its shares popped 5.5% higher. The company highlighted an increase in organic bookings, driven by strength in its Americas Commercial HVAC segment. Trane also lifted its full-year sales and earnings per share (EPS) guidance.