Southwest Airlines executives share plans to increase profits, and other airlines are following suit
Southwest Airlines soared more than 7% Thursday, rising after company leaders detailed plans to improve profits.
The company’s three-year plan calls for a $4 billion increase in earnings before interest and taxes in 2027. From 2026, reserved seats and seats with extra legroom will be introduced.
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Southwest Airlines in 2024
Stock prices move significantly at noon
Here are the stocks that moved the most during midday trading:
Click here for a complete list of stocks on the move.
— Samantha Subin
HSBC points out that “just because valuations are “high” doesn’t mean it’s time to focus on small-cap stocks.”
HSBC says that while there are concerns that large-cap valuations could expand, it is not the time to completely pivot to small-cap stocks.
“Valuations are one of the main drivers as the S&P 500 soars to all-time highs. To be sure, valuations look expensive,” Nicole Inui, head of equity strategy for the Americas at HSBC, wrote in a note Wednesday. Ta. “We argue that much of this froth and loftiness is due to the dominance of the ‘big’ companies included in the index, including not just big tech companies, but big retailers, big banks, big pharma, etc. Masu. ”
“We don’t think it’s time to position in small-cap stocks. Historically, small-cap stocks have underperformed following Fed easing cycles, even when a recession has not materialized,” Inui said.
— Brian Evans
The S&P 500 has set new record highs at least once every five business days this year.
Traders work on the floor of the New York Stock Exchange.
new york stock exchange
If you hear phrases like “all-time high” often in connection with the S&P 500, you’re right.
So far in 2024, the composite index has reached record levels more than once every five business days, Oppenheimer said. The S&P 500 is on track to end the calendar year up more than 20% as of late Thursday morning.
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S&P 500, year-to-date
Super microcomputers fall 10% due to Ministry of Justice investigation report
Super Micro Computer’s stock plunged more than 10% in late morning trading following a Wall Street Journal report that the AI server maker was being investigated by the Justice Department.
The report, citing people familiar with the matter, said a former employee had accused the company of accounting manipulation.
Last month, the company’s stock price fell nearly 38% after the company postponed its annual financial report and after Hindenberg Research disclosed a short position alleging accounting violations.
— Samantha Subin
Micron Technology celebrates its best day since 2011
Micron Technology’s solid state drives for data center customers were announced at a product launch event in San Francisco on October 24, 2019.
Stephen Nellis | Reuters
Micron Technology shares rose 17%, marking the memory chip maker’s best day since November 2011.
Micron’s stock price rally follows strong quarterly results and guidance driven by rising AI demand for memory chips.
The stock is up 32% so far in 2024 and 17% in September.
— Samantha Subin
Stock prices start rising
Stocks started higher Thursday, with the S&P 500 hitting a new all-time high.
The overall market index rose 0.68%, and the Nasdaq Composite Index rose 1.1%. The Dow Jones Industrial Average rose 249 points, or 0.58%.
— Brian Evans
Economic indicators close to expectations are announced.
A series of economic announcements Thursday morning were mostly or slightly above market expectations, solidifying the view that the U.S. macro situation is stable.
New jobless claims totaled 218,000 for the week ending September 21, down 4,000 from the previous quarter and slightly above the Dow Jones estimate of 223,000. The number of continuing applications one week late rose to 1,834,000, slightly below FactSet’s forecast. Orders for long-term durable consumer goods such as aircraft, home appliances, and computers remained largely unchanged in August and were better than the previous month. Gross domestic product grew at an annualized rate of 3% in the second quarter, according to the last of three surveys released by the Commerce Department. This was in line with market expectations.
—Jeff Cox
Stock prices move significantly before the market on Thursday
Check out the companies making headlines before the bell.
Starbucks — The coffee chain rose more than 2% after Bernstein lifted its stock to outperform the market. The company is bullish on new CEO Brian Nicol, who took over on September 9th.
New York Community Bancorp — Shares of the regional lender rose more than 4% after Barclays upgraded the stock to overweight as it repositioned itself after a difficult period.
Micron Technology, a chip stock — Micron shares rose nearly 17% after the company provided better-than-expected revenue guidance for its fiscal first quarter. Other semiconductor stocks also rose on Thursday morning. Nvidia rose 2%, and ASML Holding’s U.S.-listed shares rose nearly 5%.
— Ha-Kyung Kim
Fed rate cut cycle could help ‘spark broader market opportunities’ in 2025, Wells Fargo says
The Federal Reserve’s rate cut cycle should be good for U.S. stocks and the domestic economy, according to Wells Fargo Investment Research.
“We expect the series of rate cuts to be a catalyst for broader market opportunities next year,” Scott Wren, the firm’s senior global market strategist, said in a note to clients on Wednesday. He said: “We expect the economy to slow to a more moderate pace towards the end of the year, but our base case does not include a recession.”
Central bankers could cut interest rates by more than 200 basis points (bp) between now and the end of next year, Wren said. Under this scenario, the strategist said he would continue to favor high-quality domestic stocks over riskier small-cap stocks and U.S. stocks over international investments. On the international front, we prefer developed international companies over emerging markets.
Indeed, Wren added that his current view recognizes potential risks to U.S. economic growth, including the upcoming presidential election and rising tensions in the Middle East and Ukraine.
— Peer Singh
Piper Sandler says President Trump’s trade proposals could cause further inflation
Former U.S. president and Republican presidential candidate Donald Trump speaks at a campaign rally at the Johnny Mercer Theater Civic Center on September 24, 2024 in Savannah, Georgia.
Chandan Khanna | AFP | Getty Images
Piper Sandler says some provisions in former President Donald Trump’s proposed trade policy, such as significant tariffs on imports from China, could end up stimulating inflation.
Analyst Andy Laperriere said Thursday that “President Trump’s trade policies will cause higher inflation and slower economic growth, but tariffs are likely to be focused on intermediate goods rather than consumer products.” .
“By letting the 2017 tax reform expire and calling for an expansion of the child tax credit (among other safety net expansions), Ms. Harris’ (tax) policy will hurt high-end consumers and hurt lower- and middle-class consumers. “This will be a tailwind for consumers.” the analyst added.
— Brian Evans
China ETFs soar as Chinese authorities affirm economic stimulus plan
Chinese stock exchange traded funds (ETFs) rose on the market after officials held a meeting to review government efforts to stimulate the country’s economy. The iShares China Large Cap ETF (FXI) and iShares MSCI China ETF (MCHI) each rose more than 6%.
“China continues to dominate the headlines with its economic stimulus,” JPMorgan traders wrote. “In the short term, the tactical rally is likely to continue as follows: (1) The current magnitude of the rally is
The barrage of positive news is likely to continue next month, as (2) further easing policy announcements continue to pour into the market, half of what we have seen in China’s “risk-on trading” in recent years. ”
— Fred Imbert
European stocks start higher
European stock markets opened sharply higher on Thursday following gains in Asia-Pacific markets overnight.
The pan-European Stoxx 600 index rose about 1% in early morning trading, with almost all sectors in positive territory.
— Sam Meredith
Aswath Damodaran says Nvidia’s investment odds are the ‘worst’ of the Magnificent Seven
Nvidia may be at a disadvantage when it comes to investing, said Aswath Damodaran of New York University.
“In Nvidia’s case, it’s going to be a disadvantage because of how high the price they’re paying,” the “head of valuation” said Wednesday on CNBC’s “Closing Bell.” During Wednesday’s trading, Nvidia stock rose more than 2% to a closing price of $123.51, giving the company a market capitalization of more than $3 trillion.
He went on to say that “NVIDIA is playing perfectly in both directions,” and that’s because it has nothing to do with fundamentals or business conditions. “If you’re a trader, he understands why Nvidia would be where you want to be, but as an investor, I think Nvidia is the least likely.”
Going forward, Damodaran believes expectations for Chip’s darlings will eventually need to be “reset.”
“You rated this company as the greatest company of all time,” he said. “Where’s the positive left? If it’s not the greatest company, but just a great company, that’s a disappointment. So I think this is a back-and-forth in terms of expectations.”
— Sean Conlon
Stocks that made the biggest moves after the bell: Micron Technology, HB Fuller and more
The most volatile stocks in long-term trading are:
Micron Technology — The semiconductor maker soared 13% after announcing strong guidance for the current quarter. HB Fuller — The adhesive company fell nearly 10%. HB Fuller’s fiscal third quarter adjusted earnings were $1.13 per share on revenue of $918 million. Concentrix — Stock price fell 14%. The customer experience solutions company’s third-quarter adjusted earnings were $2.87 per share, while analysts were expecting $2.93 per share, according to FactSet.
Read the complete list of transferred stocks here.
— Lisa Kailai Han
