Important points
- The S&P 500 index fell 1.3% on Friday, November 15, after the Fed chair expressed caution about further rate cuts and reports that retail sales were strong in October.
- Semiconductor equipment maker Applied Materials announced a weak sales outlook for the current quarter, citing the slowdown in the Chinese economy, and its stock price fell.
- Palantir Technologies shares soared after the analytics software provider announced it would move its stock listing to the Nasdaq.
Major U.S. stock indexes ended the week lower after Federal Reserve Chairman Jerome Powell suggested the central bank had room to ease its rate-cutting campaign if needed. Ta.
Meanwhile, retail sales data for October was better than expected, with consumer spending remaining strong despite election uncertainty and the impact of several major storms. Strong retail sales are a sign of economic resilience, but could give the Fed more flexibility as it considers the urgency of cutting rates further.
The S&P 500 fell 1.3% and the Dow Jones Industrial Average fell 0.7%. Poor performance in the tech sector weighed on the Nasdaq, which fell 2.2%.
Applied Materials (AMAT) exceeded revenue and bottom line expectations for the recently completed quarter, but the semiconductor equipment provider provided a lower-than-expected sales outlook for the current quarter. Applied Materials' stock fell 9.2% on Friday, the biggest decline among stocks in the S&P 500.
Shares of marketing and corporate communications company Omnicom Group (OMC) fell 7.8%. In its latest earnings report, released a month ago, Omnicom beat expectations for revenue and profit, benefiting from its acquisition of digital commerce platform Flywheel Digital, which it completed earlier this year. However, analysts note that Omnicom faces challenges such as cost control, economic uncertainty and potential technological disruption.
Moderna (MRNA) shares fall 7.3% following reports that President-elect Donald Trump intends to nominate Robert F. Kennedy Jr., who has publicly expressed his skepticism about vaccines, to be Secretary of Health and Human Services. did. President Kennedy has signaled his intention to push for major changes to the Food and Drug Administration (FDA). Shares of fellow vaccine maker Pfizer (PFE) fell 4.7%.
Palantir Technologies (PLTR) stock soared 11.1% on Friday, making it the best performer among S&P 500 stocks. The analytics software company announced it will move its stock listing from the New York Stock Exchange to the Nasdaq. Palantir's Class A shares will begin trading on the Nasdaq Global Select Market while retaining the ticker “PLTR,” the company said.
Walt Disney Co. (DIS) stock soared 5.4% on Friday, adding to gains from previous trading after the entertainment giant's fourth-quarter fiscal revenue and adjusted profit beat consensus estimates. Disney's streaming service posted strong profit growth, and revenue from its experiences division, which includes theme parks and cruise ships, increased year over year.
DaVita (DVA) stock rose 3.9%. Friday's gains extended the stock's recovery from a post-earnings selloff. In a report released Oct. 29, the kidney dialysis provider missed quarterly profit expectations. Despite the decline in net income and increased costs, analysts remain optimistic about DaVita's business success and growth potential.
