Top S&P 500 moves on Tuesday
2 hours 25 minutes ago
The Advancer
- Mining giant shares Freeport McMoRan The FCX surged 7.9% as copper prices surged following Beijing's monetary policy announcement. The property market is a key focus of China's stimulus program, and a potential recovery in the sector could further boost the price of copper, a key material for wiring and pipes used in new construction. That helped make the mining stock the day's best performer in the S&P 500.
- The shift in China's monetary policy has also helped boost share prices of consumer companies operating in the country. Cosmetics makers' shares are up 1.5%. Estee Lauder (EL) rose 6.1% on Tuesday. The company reportedly generates nearly a third of its revenue in the Asia-Pacific region, with the majority of it coming from China.
- Shares in Macau-based casinos with ties to China also rose on reports of the stimulus package. Las Vegas Sands Las Vegas Sands shares rose 5.4% on Tuesday, with shares of the casino operator also rising. Wynn Resorts (Wynn) rose 4.9%.
Rejectors
- Global Payments Shares of payment processing solutions provider Global Payments (GPN) fell 6.5%, the biggest drop in the S&P 500 index, after the company issued a weaker-than-expected full-year profit outlook. At an investor conference on Tuesday, GPN's chief financial officer said the company sees 2025 as a transition year.
- Global Payments is not alone in losses in the payment processing industry. visa (V) shares fell 5.5% on reports that the U.S. Department of Justice (DOJ) has filed an antitrust lawsuit against the credit card issuer. The government agency alleges that Visa is using monopolistic tactics to maintain its leading position in the credit card market.
- Medical supplies and pharmaceuticals distributor stocks McKesson McKesson shares fell 4.9% after financial services firm Baird downgraded the stock to “neutral.” Analysts said they were losing confidence in McKesson's ability to beat expectations and suggested the company may need to adjust its strategy to regain the investment community's trust.
- Regeneron Pharmaceuticals (REGN) shares fell 4.2% on Tuesday, extending losses recorded the previous day after the drugmaker lost a lawsuit seeking to block a biosimilar version of its blockbuster drug Eylea. A federal judge in West Virginia denied Regeneron's injunction that would have prevented Amgen (AMGN) from bringing Eylea's competitor, PubBlue, to market. In a complaint filed against Amgen in early 2024, Regeneron alleged that the biosimilar drug infringes 32 patents. Regeneron immediately appealed this week's ruling.
–Michael Bromberg
Freeport-McMoRan shares surge on reports of China stimulus plan
4 hours 39 minutes ago
Shares of Freeport-McMoRan (FCX) soared on Tuesday on higher prices for copper and gold, the main commodities the mining giant produces.
Copper futures rose about 4 percent to their highest since mid-July after the Chinese government announced stimulus measures aimed at spurring the country's struggling housing and financial markets.
Meanwhile, gold futures rose about 1% on Tuesday, continuing the recent bullish trend that has propelled the precious metal to record levels. The strong performance has been fueled by lingering concerns about inflation as the Federal Reserve turns to interest rate cuts.
Copper prices have been trending higher since the Federal Reserve prepared and implemented its first interest rate cut in September. Fed rate cuts tend to weaken the dollar against other currencies, and because copper prices are quoted in dollars, this makes the metal cheaper for buyers using other currencies, potentially boosting global demand and supporting higher prices.
Copper market analysts expect China's newly announced economic stimulus package to help drive copper prices higher. China is the world's largest consumer of copper, and copper demand is heavily dependent on the real estate and construction sectors, as the metal is used in electrical wiring and plumbing. As China's economic stimulus package specifically targets the struggling real estate and housing market, the policy could help drive a significant recovery in copper demand in the country.
Trading View
Freeport-McMoRan shares rose about 8% on Tuesday, leading the S&P 500 index's top gainers.
–Michael Bromberg
Smartsheet Enters Into Deal With Vista and Blackstone
5 hours 48 minutes ago
Shares of work-management platform Smartsheet (SMAR) soared on Tuesday after the company said it had agreed to be acquired by asset manager Blackstone (BX) and investment firm Vista Equity Partners for $8.4 billion in cash.
Through the deal, Smartsheet investors will receive $56.50 for each share they own, a premium of 8.5% to Monday's closing price. Smartsheet said this represents a 41% premium to the company's volume-weighted average closing price over the 90 days through July 17, the last trading day before media reports of a possible sale emerged.
Trading View
Smartsheet shares rose 6.4% in late trading Tuesday, hitting their highest price in more than two years.
The agreement gives Smartsheet a 45-day “go-shop” period to explore other acquisition targets. If nothing changes, the transaction is expected to close on Jan. 31.
–Bill McCall
Micron stock price to watch ahead of earnings report
8 hours 16 minutes ago
Micron (MU) shares rose about 1% in afternoon trading Tuesday, extending their gains for the fourth consecutive trading day, ahead of the chipmaker's long-awaited fourth-quarter earnings report, due after the close of trading on Wednesday.
Analysts expect the company to return to profitability and see revenue nearly double from a year ago as it continues to benefit from surging demand for high-bandwidth artificial intelligence (AI) memory chips that power data centers, smartphones and PCs.
The company's stock price formed two clear valleys between August and September, and there is a possibility that the semiconductor manufacturer's stock price may hit a second bottom.
Investors should watch for key low price levels near $87 and $79 on Micron's charts, while also keeping an eye on key high price levels near $109 and $128.
Read the full technical analysis here.
–Timothy Smith
Visa shares fall after reports that DOJ is preparing antitrust lawsuit
10 hours 17 minutes ago
Payment processing giant Visa (V) shares fell at the open after reports that the Department of Justice (DOJ) could sue the company as early as Tuesday for alleged monopoly practices to protect its dominance in the debit card market.
The Justice Department is preparing to bring charges against Visa for using exclusivity agreements and other tactics to stop competitors from getting big enough to challenge its dominant position. Bloomberg The news broke on Monday night. Subsequent reports said: The New York Times The Justice Department said it also plans to argue that Visa imposed fines on customers who used alternative payment processing services.
The potential lawsuit comes after a years-long regulatory investigation that saw Visa and rival payment processor Plaid abandon merger talks in January 2021 due to an antitrust lawsuit.
The Justice Department said at the time that the planned $5.3 billion merger was an example of monopoly behavior, seeking to buy up rivals before they were big enough to effectively compete with it.
Visa shares were down about 4% on Tuesday morning, leading the decline in the Dow Jones Industrial Average.
–Aaron McDaid
Tesla's price level to watch as it continues to rise
12 hours 16 minutes ago
Tesla shares rose in premarket trading after jumping 5% on Monday, as several analysts pointed to possible better-than-expected third-quarter vehicle deliveries and the electric vehicle maker's upcoming robotaxi event as factors that could drive the stock higher.
The stock, which has turned positive again this year, is trending higher, finding support from the descending trendline of the past few months and the neckline of an inverted head and shoulders pattern, but volume remains below its long-term average.
Investors should keep an eye on the key support levels near $225 and $205 on Tesla's chart, as well as key resistance levels near $265 and $300.
Tesla shares rose 1.8% to $254.45 in recent premarket trading.
Read the full technical analysis here.
–Timothy Smith
Major stock index futures edge up
12 hours 54 minutes ago
Futures tracking the Dow Jones Industrial Average rose 0.1%.
Trading View
S&P 500 futures also rose 0.1%.
Trading View
Nasdaq 100 futures rose 0.2%.
Trading View
