Important points
The S&P 500 fell 0.1% on Friday, September 27, 2024, as investors digested the latest inflation data that revealed consumer price pressures eased in August.
Dell Technologies posted the steepest decline in the index as the tech sector stalled. Shares of casino operators rose following China’s economic stimulus announcement this week, potentially strengthening their Macau operations.
Major U.S. stock indexes were mixed on the final trading day of the week as investors digested the latest personal consumption expenditure (PCE) data that showed consumer price pressures eased in August, with the Federal Reserve’s Expectations have grown that the Federal Reserve will continue to lower interest rates.
On Friday, the S&P 500 was down 0.1%, and the Nasdaq was down 0.3% due to poor performance in the tech sector. The Dow Jones Industrial Average rose 0.3% to end the week at a record high.
Dell Technologies (DELL), one of three stocks added to the S&P 500 on Monday, saw its stock rise earlier this week, but gave back some of its gains on Friday. The stock fell 5% on Friday, the biggest decline among S&P 500 stocks. Dell’s losses came despite bullish comments from Deutsche Bank analysts. Analysts resumed coverage of the stock with a “buy” rating on Thursday, expecting digital sales to double on strong performance across servers, storage products and commercial PCs.
Globe Life (GL) stock fell 4.7% after the insurance company announced it could face a lawsuit from the Equal Employment Opportunity Commission (EEOC). According to Globelife’s regulatory filings, the EEOC found “reasonable cause” to believe that the company discriminated against six distributors on the basis of gender. The company, which provides life insurance, supplemental health care and pension plans, maintained that the issue would not result in material loss to the company and said it would protect itself from potential legal action.
Shares of PC and printer maker HP (HPQ) fell 3.9% after Bank of America downgraded the stock to “neutral.” Analysts at BofA said margins in HP’s printer division could retreat from their current high levels compared to historical averages. Analysts suggested that there is some upside potential for the PC division, especially computers with artificial intelligence (AI) capabilities, but HP’s free cash flow (FCF) is likely to plateau in the short term. , expects earnings growth to come solely from share buybacks.
Shares of casino operators rose following the announcement of China’s economic stimulus package this week, which could provide a tailwind for casino operators’ real estate in Macau. Wynn Resorts (WYNN) soared 7.2% on Friday, the best performer in the S&P 500, after Morgan Stanley upgraded the stock to “overweight” and raised its price target. . Analysts highlighted Wynn’s ongoing investments, premium products, location near newly launched attractions, and upcoming projects in the United Arab Emirates. Shares of rival Las Vegas Sands (LVS) rose 5.6%.
Shares of oil and gas exploration and production company APA Corporation (APA) rose 6% on a daily basis. Crude oil futures prices recovered slightly on Friday after falling earlier in the week on expectations for production increases from major producers. APA this week announced a partnership with software infrastructure provider Palantir Technologies (PLTR) to leverage AI technology to help energy companies optimize operational planning, supply chain, production and contract management. announced that it would expand.
