Markets News, May 13, 2024: Stocks End Mixed As Investors Await Key Inflation Data; Dow's Winning Streak Is Snapped (2024)

Major U.S. stock indexes ended mixed Monday, with the Dow Jones Industrial Average snapping an eight-session winning streak, as investors await key inflation data that could provide clues on how soon the Fed will be able to consider cutting interest rates.

TheDow Jones Industrial Average shed 0.2%, while thewas down fractionally and theNasdaq Composite added 0.3%.

The three major indexes have posted gains for three consecutive weeks and are all trading near record highs. Investor sentiment has been supported during that period by generally strong earnings reports and optimism that the Federal Reserve could be in a position to cut rates if economic data show an easing of inflationary pressure.

The calendar of earnings and economic data releases was light on Monday but picks up starting Tuesday, when Home Depot (HD) reports quarterly results and producer price index numbers will be released. The big data release of the week will come Wednesday with the consumer price index report.

Among big movers Monday, GameStop (GME) shares gained 74%, after more than doubling early in the session and having trading suspended several times. The jump followed a rare post on X from trader Keith Gill, who is known by his online persona of "Roaring Kitty" and was a key driver of the 2020 meme stock craze. (read more below)

Walgreens Boots Alliance (WBA) was among the top gainers on the S&P 500 and Nasdaq, rising 5.4%, after a Bloomberg report said the company is working with advisors on the potential sale of the Boots drugstore chain in the U.K.

Intel (INTC) was the top gainer among Dow components, up 2.2%, after The Wall Street Journal reported that the it's in talks with Apollo Global Management about providing $11 billion in funds to help the chipmaker build a plant in Ireland. Home Depot was the biggest Dow laggard, falling 1.6% ahead of its early-Tuesday earnings release.

The yield on 10-year Treasurys was at 4.49%, down slightly from Friday's close, while gold futures were down 1.3% at $2,343.

S&P Movers Monday

May 13, 2024 05:49 PM EDT

GAINS

Incyte (INCY) shares posted the strongest gains in the S&P 500, jumping 8.6% after the biopharmaceutical firm announced that it would buy back $1.67 billion worth of shares in aDutch auctiontender. Incyte's CEO said the repurchase authorization reflects the firm's strong confidence in its commercial product portfolio and clinical development pipeline.

Moderna (MRNA) gained 7.1%, clawing back the losses posted Friday after the biotech firm said the Food and Drug Administration (FDA) haddelayed its approval decisionon mRNA-1345, the company's vaccine against respiratory syncytial virus (RSV). The delay puts Moderna at a disadvantage versus GSK (GSK) and Pfizer (PFE), whose RSV vaccines have already received approval, but Moderna still expects a commercial launch in the third quarter of 2024. In addition, Morningstar included Moderna on a list of undervalued stocks on Monday, projecting the firm will be profitable by 2026.

Walgreens Boots Alliance (WBA) advanced 5.4% amid reports that the pharmacy giant isseeking possible buyersfor its U.K.-based Boots pharmacy chain. This is not the first time that Walgreens has explored options for selling Boots—in June 2022, the company announced that it was giving up on talks to sell the unit as volatile financial markets prevented prospective buyers from making offers Walgreens would find attractive.

LOSSES

Vistra Corp. (VST) shares dropped 3.5%, marking the weakest performance in the S&P 500 Monday. The electric utility stock took off last week after it became the newest constituent of the benchmark index. However, the company recently reported a year-over-year decline in revenue for the first quarter.

GE Vernova (GEV), the energy division that completed its spinoff from the GE conglomerate in April, slid 3.4%. Over the weekend, former president and Republican presidential candidate Donald Trump promised to issue an executive order restricting offshore wind energy should he return to the White House. GE Vernova is a key provider of wind turbine technologies and services.

Mettler-Toledo (MTD) fell 3.2%, reversing a portion of the stock's gains Friday following a strong quarterly earnings report. The maker of scales and other analytical devices beat quarterly sales and profit estimates, driven by strength in its laboratory segment, but its revenue and net income dropped compared with the year-ago period.

-Michael Bromberg

Walgreens Jumps on Report of Possible Boots Sale

May 13, 2024 02:39 PM EDT

Walgreens Boots Alliance (WBA) shares jumped nearly 6% Monday following a report that the big drugstore chain has been reaching out to potential buyers of its British-based Boots unit.

Markets News, May 13, 2024: Stocks End Mixed As Investors Await Key Inflation Data; Dow's Winning Streak Is Snapped (1)

Bloombergreported the company is working with advisers to solicit early stage talks to sell Boots, which could be worth 7 billion British pounds ($8.8 billion).

This wouldn’t be the first time Walgreens looked to shed Boots. In June 2022, the company announced that it had had “productive discussions” with a range of prospective buyers who showed “significant interest” in purchasing the chain.

However, the company explained then that since the launch of the effort, global financial markets "suffered unexpected and dramatic change.” It said that led to financing difficulties for suitors who could not make an offer that adequately reflected the value of the business.

-Bill McColl

Squarespace Jumps On $6.9 Billion PE Buyout Deal

May 13, 2024 11:46 AM EDT

Squarespace (SQSP) gained more than 13% afterprivate equityfirm Permira announced it was buying the software provider for $6.9 billion, and taking it private.

Permira said the deal would give Squarespace investors $44 per share, a 15.2% premium to Squarespace’s closing price on Friday. Permira said by taking Squarespace private, it will have “the flexibility and resources to invest in enabling entrepreneurs to build better online brands and more easily transact with their customers.”

Squarespace founder andCEO Anthony Casalena noted that the company would continue working with its existing long-term investors, General Atlantic and Accel. Casalena and the two firms own approximately 90% of Squarespace's voting shares.

Under the terms of the agreement, Casalena will continue to be one of the largest shareholders and remain CEO and board chair.The transaction is expected to be completed in the fourth quarter.

The stock is up 13.2% at $43.22 late Monday morning.

-Bill McColl

GameStop Soars as 'Roaring Kitty' Posts; Trading Halted

May 13, 2024 10:09 AM EDT

GameStop (GME) shares more than doubled in early trading Monday as the one-timememe stock appears poised for another wave of activity with the onlinereturn of Keith Gill, who was a key driver of the stock's surge in late 2020 and early 2021. Trading in the stock has been halted.

Markets News, May 13, 2024: Stocks End Mixed As Investors Await Key Inflation Data; Dow's Winning Streak Is Snapped (2)

The mid-pandemic surge that has already been immortalized indocumentaries and movieswas fueled by waves of trading from an online community of retail traders, driven by a few key figures. One of those was Keith Gill, who is known in the online trading community by a number of different usernames, including "Roaring Kitty" on his YouTube and X accounts.

On Sunday evening, Gill posted to his X account for the first time in nearly three years, returning to the digital world with a meme of a person playing video games leaning forward in his chair, indicating that the player is taking the game more seriously.

Users of theWallStreetBets subreddit, the online community that was central to the GameStop surge of 2020, expressed excitement about Gill's return, with a number of top posts on the forum about Gill's post or GameStop's price as of Monday morning.

GameStop and the company's stock symbol, GME, were each trending on X Monday morning, with many users celebrating Gill's return and posting about their investments into the stock.

-Aaron McDade

Arm Shares Up After Report It Will Develop AI Chips

May 13, 2024 09:05 AM EDT

Shares in UK-basedchip design giantArm Holdings (ARM) are more than 3% higher in premarket trading afterNikkei Asiareported Sunday that the company plans to developartificial intelligence (AI)chips, aiming to launch its first prototype in early 2025.

According to the report, Arm—in which Japan’s SoftBank (SFTBY) owns a 90% stake—will establish a new AI chip unit and build a prototype by spring next year before turning to contract manufacturers to have the chips mass produced by fall 2025.

Arm, which makes money by sellingroyaltieson its chip designs, has continued its push into the lucrative AI datacenter market, where tech behemoths such as Microsoft (MSFT), Meta (META), Alphabet (GOOGL), and Amazon (AMZN) have announced plans to build their ownin-housechips to power their AI computing requirements, helping to reduce their reliance on AI chip supplying giant Nvidia (NVDA).

Markets News, May 13, 2024: Stocks End Mixed As Investors Await Key Inflation Data; Dow's Winning Streak Is Snapped (3)

The Arm share price has traded within a narrowrising wedgesince mid April—a chart pattern technical analysts typically interpret as having a bearish bias because it indicates an easing of buying momentum. In the short-term, the price may continue to oscillate in the wedge until the downward sloping50-day moving averagecatches up with the pattern’s top trendline before the stock makes its next significant move.

Amid a move lower, investors should monitor the $79 level, an area where the price may find buyers near the February pre-breakoutlevel. However, if the price climbs above the wedge, it’s worth keeping in mind that the stock could make another attempt at testing key overheadresistancenear prior price action around $145.

The stock is up 3.1% at $112.23 in premarket trading.

-Timothy Smith

Major Stock Index Futures Higher Monday

May 13, 2024 08:42 AM EDT

Futures contracts connected to the Dow Jones Industrial Average were up 0.2%.

Markets News, May 13, 2024: Stocks End Mixed As Investors Await Key Inflation Data; Dow's Winning Streak Is Snapped (4)

S&P 500 futures were also up 0.2%.

Markets News, May 13, 2024: Stocks End Mixed As Investors Await Key Inflation Data; Dow's Winning Streak Is Snapped (5)

Nasdaq 100 futures were up 0.3% at around 8:30 a.m. ET.

Markets News, May 13, 2024: Stocks End Mixed As Investors Await Key Inflation Data; Dow's Winning Streak Is Snapped (6)

Markets News, May 13, 2024: Stocks End Mixed As Investors Await Key Inflation Data; Dow's Winning Streak Is Snapped (2024)
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