S&P 500 pulls back from record as Fed cheer fizzles

U.S. stocks fell from record highs on Friday as rate cut euphoria faded, along with FedEx ( FDX ) earnings reality check.

The benchmark S&P 500 (^GSPC) index fell roughly 0.5% after closing at an all-time high. The Dow Jones Industrial Average (^DJI) traded slightly lower as it neared its own record high. Leading the bottom, tech-heavy Nasdaq Composite ( ^IXIC ) contracts fell 0.6%.

Stocks rose on Thursday as investors welcomed news from Chairman Jerome Powell that the Federal Reserve had made a major interest rate cut to support the economy — bolstered by jobless claims data.

That roaring rally comes amid reminders that risks to growth may lie ahead. Wall Street is still wondering if the Fed is lagging behind in keeping the economy on track for a “soft landing.” Traders are pricing in deeper cuts this year, according to Fed funds futures, rather than policymakers’ “dot plot” projections.

Read More: What Fed Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards

And, according to Bank of America’s top strategist, those Fed-fueled high spirits are fueling the risk of a bubble. Michael Hartnett says stocks are priced in on levels of policy easing and earnings growth that prompt investors to chase profits.

Wall Street is missing the estimate. The delivery company – a bellwether for the economy – saw its shares tumble as much as 14%.

Elsewhere, Nike ( NKE ) stock rose after the sportswear maker named a new CEO as its sales came under pressure.

long live6 updates

Friday, September 20, 2024 at 9:07 am PDT

Shares of Trump Media Co. fell as the lock-up period ended

Shares of Trump Media & Technology Group ( DJD ) fell to new lows on Friday after the company’s six-month lock-up period ended.

As of Thursday, former President Donald Trump and other shareholders were allowed to sell shares in the social media company for the first time since it went public in March.

Trump, who owns more than half of the company, recently said he would not sell his shares.

“I have absolutely no intention of selling,” Trump told reporters last week. “I love it. I use it as a method of expressing my word.

Any development related to a Republican presidential candidate can often turn the stakes. Shares fell as much as 5% on Friday.
Fri, Sep 20, 2024 at 8:36 am PDT

Utilities perform best when the rest of the market experiences declines

Utilities ( XLU ) rose 1.5% while other sectors were flat or declined during market action on Friday.

Tech ( XLK ) shares fell 0.9% after sparking a major market rally in the previous session.

The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) retreated from record highs on Friday.

Friday applications performed well
Friday, September 20, 2024 at 8:15 am PDT

Trump continues to hammer Fed over interest rate cuts: ‘It’s a political move’

Jennifer Schoenberger of Yahoo Finance reports:

Republican presidential nominee Donald Trump has not let up on his criticism of the Federal Reserve following a half-percentage-point interest rate cut less than two months before the November election.

“This is really a political move,” the former president said during an interview with Newsmax on Thursday.

Read more here.
Fri, Sep 20, 2024 at 7:51 am PDT

Constellation Energy hit an all-time high in a deal to sell nuclear power to Microsoft

Shares of Constellation Energy ( CEG ) hit an all-time high on Friday after the company announced plans to restart a nuclear reactor at Three Mile Island ( TMI ) and sell power to its data centers to Microsoft ( MSFT ).

Wall Street had been eyeing a deal with one of the big tech players this year as they seek more power to power their technology infrastructures amid an artificial intelligence boom.

In 1999, Constellation acquired the TMI Unit 1 nuclear reactor located in Pennsylvania. It is located next to Unit 2, which was closed in 1979 after suffering a partial meltdown.

“TMI Unit 1 is a fully independent facility and its long-term operation has not been affected by the Unit 2 accident,” Constellation said in its announcement on Friday.

Before Unit 1 was shut down for economic reasons in 2019, the plant had a generating capacity of 837 MW, enough to power more than 800,000 average homes, the company said.

Constellation Energy rose up to 15% on Friday. As of today, the share is more than 100%.
Fri, Sep 20, 2024 at 6:46 am PDT

Nike shares rise 7% on CEO change

Shares of Nike ( NKE ) rose Friday after sneaker and sportswear giant John Donahoe announced plans to retire. He will be replaced by Elliott Hill, the company’s former head of consumer and marketing, effective October 14.

Wall Street analysts cheered the arrival of Hill, who left Nike in 2020. Shares of the company rose more than 7% in early trading.

As Yahoo Finance’s Brooke DiPalma reports, the leadership change fits Nike’s board — which includes founder Bill Knight, former longtime CEO Mark Parker and Apple CEO Tim Cook — to focus on improved product and re-establishing relationships vacated by Donahoe. Like Foot Locker (FL)

Read more here.
Friday, September 20, 2024 at 6:30 am PDT

Stocks pull back from record highs as Fed rate cut rally fades

Stocks fell slightly in early trading on Friday, retreating from record highs in the S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI).

The tech-heavy Nasdaq Composite (^IXIC) also slipped after a monster rally in the session ahead of a jumbo rate cut from the Federal Reserve.

Market euphoria came to a screeching halt on Friday after FedEx ( FDX ), the bellwether for the US economy, posted disappointing quarterly results on Thursday evening.

FedEx shares fell in early trading.