Stock market news for June 27, 2024

17 Hours Ago

S&P 500 closes flat Thursday

The S&P 500 ended Thursday’s trading session little changed.

The broad market index inched up just 0.09%, while the Nasdaq Composite gained 0.30%. The 30-stock Dow Jones Industrial Average added around 36 points, or 0.09%.

— Hakyung Kim

17 Hours Ago

Retail stores have even more competition now due to e-commerce, retail analyst says

Today’s brick-and-mortar retailers are due to face even more obstacles because of the breadth of e-commerce offerings now available to consumers as a result of the Covid-19 pandemic, according to JPMorgan retail analyst Matthew Boss.

“It’s a lot more cutthroat competition, and being equal on price to the discounters might not be enough because now you might not be as convenient given that technology advance that’s happened outside of their world,” Boss told CNBC’s “The Exchange” on Thursday afternoon.

The analyst added that he is currently favoring a selection of stocks that includes off-price retailers such as TJX, Burlington Stores and Ross Stores.

“They have brands for great value. They’re not pushing price but instead that value component where the consumer comes in, that treasure hunt,” he shared.

Boss also likes Ollie’s Bargain Outlet, Dollar Tree, Birkenstock, PVH and Royal Caribbean, among others.

— Lisa Kailai Han

18 Hours Ago

These are the biggest winners in the S&P 500

18 Hours Ago

AI boom will benefit industrials and materials stocks, Wells Fargo says

The artificial intelligence boom will create more demand for companies in the industrials and materials sectors, according to Scott Wren, senior global market strategist at Wells Fargo.

“We believe the generative AI push will likely benefit the basic industries that both of these sectors represent, even in a slower-growth economy,” Wren wrote in a note to clients.

The excitement around AI has thus far benefited mainly chipmakers such as Nvidia and software names including Microsoft, but that should broaden out as spending ramps up, according to Wells Fargo.

“The fact remains that little can happen to actually ramp up use of these products until the infrastructure has been adequately updated,” Wren added.

— Jesse Pound

18 Hours Ago

9 stocks in the S&P 500 hit new 52-week highs

During Thursday’s trading session, nine stocks in the S&P 500 reached new 52-week highs. These stocks were also trading at new all-time highs.

Names that hit this milestone included:

• Alphabet C share trading at all-time highs back to the special distribution on April 2, 2014, when the nonvoting share was created, and it began trading on April 3, 2014
• Alphabet A share trading all-time highs back to its initial public offering on Aug. 19, 2004
• Amazon.com trading at all-time-high levels since back to its IPO in May 1997
• Booking Holdings trading at all-time highs back to its IPO in April 1999
• Royal Caribbean trading at all-time-high levels back to its IPO in April 1993
• Intuitive Surgical trading at all-time highs back to its IPO in June 2000
• Arista Networks trading at all-time-high levels back to its IPO in June 2014
• Fair Isaac trading at all-time highs back to when it was listed at the New York Stock Exchange in 1986
• Microsoft trading at all-time-high levels back to its IPO in March 1986

On the other hand, Walgreens Boots Alliance was trading at lows not seen since June 1997.

— Lisa Kailai Han, Christopher Hayes

18 Hours Ago

Walgreens heads for worst day in more than 50 years

Walgreens Boots Alliance‘s postearnings sell-off put the stock on track for its worst day in at least half a century.

Shares tumbled close to 25% on Thursday. That would mark its worst session for either Walgreens or Walgreens Boots Alliance in CNBC’s records going back to 1972.

See Chart…

Walgreens Boots Alliance, 1-day

Thursday’s retreat comes after the drugstore chain slashed its profit outlook and warned of a “challenging” consumer environment. Walgreens also missed expectations of analysts polled by FactSet for earnings per share in its third fiscal year.

The stock’s current worst-completed trading day took place in October 2007, when shares dropped around 15%. Walgreens first went public on the New York Stock Exchange in 1927, before becoming the Walgreens Boots Alliance in late 2014.

Walgreens Boots Alliance has plummeted more than 54% in 2024, on track for its third straight negative year. The stock was replaced by Amazon in the Dow earlier this year.

— Alex Harring, Gina Francolla

19 Hours Ago

Real estate is the leading sector in the S&P 500

Real estate was the outperforming sector in the S&P 500 during Thursday’s trading session.

The category was trading 0.7% higher, followed by consumer discretionary and communication services stocks, both up approximately 0.3%.

On the other hand, the consumer staples and health-care sectors led the broad market index lower. Stocks in both categories were trading around 0.4% in the red.

— Lisa Kailai Han

19 Hours Ago

Chewy shares surge 13% on Roaring Kitty tweet

Online pet retailer Chewy rallied 12.6% after meme stock influencer Keith Gill, known as “Roaring Kitty,” posted a picture of a cartoon dog on social media platform X.

Petco shares also gained more than 6% after the post.

— Hakyung Kim

20 Hours Ago

SM Energy slumps as much as 12% after acquisition, dividend raise and buyback

Denver-based SM Energy tumbled as much as 12% in reaction to a $2.55 billion acquisition of oil and gas assets from privately held XCL Resources, or $2.04 billion after a concurrent sale of 20% of those holdings to Northern Oil and Gas for $510 million.

SM said the purchase, large in relation to SM’s market value of $5.65 billion, would be immediately accretive to earnings and funded through a combination of debt and cash on hand.

SM’s board also approved an 11% increase in its quarterly dividend, giving it a yield after today’s slide of some 1.9%, and authorized a new $500 million stock buyback.

See Chart…

SM shares on Thursday.

20 Hours Ago

Retail traders bought the recent dip in Nvidia

Retailer traders took Nvidia’s recent sell-off as a buying opportunity, snapping up shares of the dominant artificial intelligence chipmaker amid the volatility.

The cohort bought $1.8 billion worth of Nvidia shares over the past week as the Jensen Huang-led company suffered a quick pullback, according to JPMorgan data. 

Nvidia’s sell-off started last Thursday after it temporarily unseated Microsoft as the most valuable public company in the U.S. It went on to see a 13% slump in the span of just three days. The stock has since recouped some of those losses, and the shares are now off just 2% so far this week.

— Yun Li

21 Hours Ago

Stocks making the biggest moves midday

Here are the stocks on the move midday:

• Walgreens Boots Alliance — The stock plummeted more than 24.5% after the retail company reported third-quarter earnings results that missed Wall Street’s expectations. The company also announced a cut to its full-year adjusted profit outlook and said it would close stores that are underperforming as a way to cut costs. Shares of CVS fell more than 4% in sympathy.
• Levi Strauss — The denim maker’s stock tumbled 17.1% after revenue came in at $1.44 billion for the second fiscal quarter. That is slightly below the consensus forecast of $1.45 billion from analysts polled by LSEG.
• International Paper — Shares of the paper manufacturing company fell nearly 8% following the news that Suzano is no longer pursuing a potential acquisition of the company. Suzano said it believes it had reached the maximum price for the transaction to general value without receiving any response from the other party.

Read the full list here.

— Sean Conlon

21 Hours Ago

UBS strategists expect pullback ahead for stocks, say buy the dip

UBS derivatives strategists think the S&P 500 could sell off 2% to 3% in the next week or two, with pensions primed to sell about $30 billion to $40 billion amid low market liquidity.

That said, they think that pullback would be a good buying opportunity as many investors are properly hedged against a decline. “Further, summer seasonality typically points to lower volatility which should trigger $250-$300B of Buying from systematic funds,” the UBS strategists said.

— Fred Imbert

21 Hours Ago

Tom Lee sees further upside for stocks and inflation falling ‘like a rock’

Fundstrat head of research Tom Lee told CNBC on Wednesday that he believes inflation is “going to fall like a rock” and help the stock market rally broaden out.

Lee pointed to the auto market in particular, where he sees downside on new car prices, as an area where goods inflation can continue to fall.

Lee also downplayed comparisons between the current market and the dot-com boom, saying investor sentiment does not feel like a bubble.

“There was a lot more ebullience back then, and a lot more people who didn’t think stocks could ever go down. I think there’s a lot of top-callers today,” Lee said on “Squawk Box.”

— Jesse Pound

22 Hours Ago

Communication services leading weekly sector gains

Communication services is up 2.9% week to date, making it the top-performing sector in the S&P 500. Meta Platforms‘ 5% weekly gain is leading the sector, followed by Alphabet and News Corporation gaining more than 3%.

The energy sector is the second-highest gaining sector, rising 2%. Consumer discretionary is up 1.2% week to date, while information technology is just 0.1% higher.

— Hakyung Kim

22 Hours Ago

Cybersecurity ETF pops 3%, heads for best day since November

22 Hours Ago

Hims & Hers shares tumble as questions mount about weight loss drug sales

Shares of telehealth platform Hims & Hers Health slid more than 8% Thursday after Hunterbrook Media published a report raising questions about the company’s sale of weight loss drugs. Hunterbook is affiliated with hedge fund Hunterbrook Capital, which has a short position in Hims & Hers.

The popularity of anti-obesity medications such as Novo Nordisk’s Wegovy and Eli Lilly’s Mounjaro has resulted in shortages of the drugs. Hims & Hers is exploiting a loophole that allows compounded versions of drugs in short supply to be sold. The company has said it plans to sell the branded GLP-1 medications to its clients once supplies are more reliable.

See Chart…

Hims & Hers Health shares over the past year.

The stock has gained more than 142% since the start of the year as investors bet that strong demand for weight loss drugs would lead to rapid growth for the firm.

Both Eli Lilly and Novo Nordisk have filed lawsuits against numerous suppliers who are selling knock-off versions of their medications.

— Christina Cheddar Berk

23 Hours Ago

Gold on pace for first negative month in four

Gold is around 0.1% higher for the week. If the gains hold, the metal will notch its second positive week in three.

Month to date, however, gold is down 0.5%, on pace for its first negative month in four.

Year to date, gold is up 12.6%.

— Hakyung Kim, Gina Francolla

23 Hours Ago

Stocks open little changed Thursday

U.S. stocks began Thursday’s trading session flat.

The Dow Jones Industrial Average dipped 42 points, or 0.1%. The S&P 500 was marginally lower, while the Nasdaq Composite added 0.1%.

— Hakyung Kim

Thu, Jun 27 2024 9:04 AM EDT

Walgreens has dismal stock performance

A Walgreens store in San Francisco on March 7, 2023.

David Paul Morris | Bloomberg | Getty Images

Including today’s plunge following its poor earnings report, shares of Walgreens Boots Alliance have plummeted 41% since the stock was booted from the Dow back in February — a mere four months ago.

That is also on top of another 41% it dropped in the year prior to being removed from the index.

Over a two-year span, the stock has lost 70% of its value.

See Chart…

Walgreens shares over the last five years

Thu, Jun 27 2024 8:46 AM EDT

Here’s a rundown of this morning’s economic news

Initial jobless claims edged lower, demand for long-lasting big-ticket items was better than expected and first-quarter economic growth rose a bit as did inflation for the period, according to economic data releases Thursday.

• The Commerce Department’s third and final estimate for Q1 gross domestic product showed a seasonally adjusted annualized gain of 1.4%. That was 0.1 percentage point higher than the previous estimate but in line with the Dow Jones estimate.
• Chain-weighted prices rose 3.1% in Q1, up from 3% previously. The personal consumption expenditures price index, which the Federal Reserve pegs as its preferred inflation gauge, rose 3.4% on all items and 3.7% on the core, both 0.1 percentage point above the previous estimate.
• First-time claims for unemployment insurance for the week ending June 22 totaled 233,000, down 6,000 from the previous week and below the 235,000 estimate, the Labor Department reported. Continuing claims, which run a week behind, rose to 1.839 million, the highest level since Nov. 27, 2021.
• New orders for “durable goods,” or long-lasting items such as aircraft, appliances and computers, unexpectedly increased 0.1% in May, below the downwardly revised 0.2% increase in April but better than the estimate for a 1% decline, according to the Census Bureau. Excluding defense, new orders were off 0.2% and down 0.1%, excluding transportation.

— Jeff Cox

Source