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Key Takeaways
- The S&P 500 lost 0.6% on Wednesday, April 17, 2024, as the increasingly uncertain outlook on interest rate cuts pressured stock markets.
- J.B. Hunt shares fell after the trucking and logistics firm missed quarterly estimates amid weakness in its intermodal business.
- Shares of United Airlines took off after the carrier posted better-than-expected results and discussed adjustments to its fleet.
Major U.S. equities indexes moved lower on Wednesday, deepening the downtrend that has swept across stock markets in April amid fading expectations for imminent interest rate cuts by the Federal Reserve.
The S&P 500 slipped 0.6% Wednesday. Another day of weakness in the technology sector dragged on the Nasdaq, which fell 1.2%, while the Dow closed the day with a minor loss of 0.1%.
J.B. Hunt ( JBHT ) shares dropped 8.1%, marking the day’s weakest performance of the S&P 500, after the trucking and logistics firm reported lower-than-expected revenue and profit for the first quarter. Although the company’s final mile segment posted revenue growth, flat volumes in its key intermodal business weighed on the results.
An earnings miss also dragged on shares of insurer Travelers Companies ( TRV ), which lost 7.4%. The property and casualty firm’s first-quarter revenue, earnings per share (EPS) , and net premiums written fell shy of forecasts. Meanwhile, a year-over-year jump in catastrophe losses reflected the impact of severe wind and hail storms in various regions of the U.S.
Prologis ( PLD ) shares dropped 7.2% after the industrial real estate investment trust (REIT) lowered its full-year guidance. Despite posting better-than-expected revenue in its most recent quarter, Prologis anticipates softness in warehousing markets as companies aim to rein in logistics expenses.
Shares of United Airlines ( UAL ) took off with gains of 17.5%, marking Wednesday’s top performance among S&P 500 components. The airline posted a narrower-than-expected quarterly loss on year-over-year revenue growth, and guidance for the current quarter came in ahead of estimates. United highlighted adjustments to its fleet as it responds to updated delivery schedules from aircraft manufacturers.
The strong report from United also provided a boost to rival air carriers. Shares of American Airlines ( AAL ) jumped 6.6%, while Southwest Airlines ( LUV ) shares gained 2.6%.
Shares of insurer Globe Life ( GL ) added 5.4%, notching a second consecutive day of strong gains. Last Thursday, Globe Life shares lost more than half their value when a short seller disclosed a position in the stock. Although Globe Life faces a Department of Justice investigation into fraud allegations, analysts expect the firm to post year-over-year revenue and EPS growth when it releases results next week.