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Key Takeaways
- The S&P 500 jumped 0.9% on Monday, April 22, 2024, notching its first positive day in more than a week after six straight losing sessions.
- Ford shares pushed higher amid initiatives to boost EV sales and following a unionization vote by Volkswagen workers.
- Shares of Cardinal Health fell after the firm announced it would not renew a drug distribution contract with OptumRX.
Major U.S. equities indexes moved higher, kicking off the new trading week in positive territory after concerns about persistent inflation contributed to a string of losses last week.
Monday’s gains came ahead of earnings reports from big tech names and other companies throughout the week . On Friday, investors will also get a look at the latest Personal Consumption Expenditure (PCE) data—a key gauge of inflation that could influence the Federal Reserve’s upcoming policy decisions.
The S&P 500 added 0.9% on the day, resettling above 5,000 after closing below the key level last Friday for the first time since February. The Dow advanced 0.7%, while the Nasdaq was up 1.1%.
Ford ( F ) shares led the S&P 500 higher on Monday, soaring 6.1% ahead of its quarterly results on Wednesday. Workers at a Volkswagen ( VWAGY ) plant in Tennessee voted last week to join the United Auto Workers. The move toward unionization at a foreign-owned car plant could help Ford and other U.S. automakers with unionized workforces become more competitive on labor costs. Ford is also accelerating its competition with Tesla ( TSLA ) by offering incentives to current Tesla owners and lessees who buy certain Ford electric vehicles (EVs).
Shares of United Airlines ( UAL ) jumped 5.0%, adding to gains posted last week when the carrier posted better-than-expected quarterly financial results. United also issued upbeat guidance for the current quarter, anticipating strong demand during the busy summer travel season, and highlighted adjustments to its fleet to reflect updated delivery schedules from aircraft manufacturers.
Shares of chipmaking giant Nvidia ( NVDA ) advanced 4.4%. With Monday’s gains, the stock recovered a portion of the 10% plunge posted on Friday amid waning optimism surrounding artificial intelligence (AI) opportunities for semiconductor firms.
Cardinal Health ( CAH ) shares slipped 5.0%, marking the day’s weakest performance in the S&P 500, after the company said it will not renew a drug distribution contract with OptumRX. Sales to OptumRX, a pharmacy benefits subsidiary of UnitedHealth ( UNH ), accounted for 16% of Cardinal Health’s revenue in 2023.
Shares of Verizon ( VZ ) dropped 4.7% after the telecom giant’s first-quarter revenue fell shy of consensus forecasts. The company reported a lower-than-expected net loss of 68,000 postpaid subscribers, but equipment revenue declined amid a slowdown in phone upgrades.
Gold prices ticked lower, receding from all-time highs posted earlier this month, as geopolitical tensions showed signs of easing. The precious metal’s price drop pressured mining stocks. Shares of Newmont Corp. ( NEM ), the world’s largest gold producer, fell 4.0%.