Wall Street's three benchmarks ended higher on Monday as investors returned to megacap growth stocks, helping both the S&P 500 and Nasdaq Composite recover from their worst weekly performance since April.
Market Snapshot
The S&P 500 gained 59.41 points, or 1.08%, at 5,564.41 points, while the Nasdaq Composite climbed 280.63 points, or 1.58%, to 18,007.57. The Dow Jones Industrial Average rose 127.91 points, or 0.32%, to 40,415.44.
Market Movers
CRWD was down 13%, building on a loss of 11% on Friday, after a software update from the cybersecurity company caused outages for millions of MSFT Windows user across the globe. Flight cancellations caused by the outage continued through the weekend. At least three Wall Street analysts downgraded the stock. CRWD’s decline Monday was its largest percentage decrease since Nov. 30, 2022, when it fell nearly 15%, according to Dow Jones Market Data. Microsoft said Saturday it estimates about 8.5 million computers worldwide were disabled by the outage.
DJT fell 0.8% as shares in the parent of Truth Social, which is majority owned by Republican presidential nominee Donald Trump, reacted to the announcement that Biden would be withdrawing from the election in November. The stock had traded higher in the premarket session.
NVDA rose 4.8% following a Reuters report that said the chip maker was planning a new artificial-intelligence chip for the Chinese market that would be compatible with U.S. export controls.
VZ Communications added 148,000 net retail postpaid phone subscribers in the second quarter, higher than analysts’ estimates. Adjusted earnings in the period of $1.15 a share matched Wall Street predictions but declined from $1.21 a year earlier. Verizon shares, fell 6% as operating revenue missed estimates. Revenue from wireless equipment declined as customers put off upgrading their devices.
TSLA stock was 5.2% higher. The company is scheduled to report its second-quarter earnings on Tuesday after the stock market closes. Wall Street expects earnings of 61 cents a share from the electric-vehicle maker, which reported better-than-expected second-quarter deliveries in early July.
ON gained 6.6%. The company said it would provide VOW3 with advanced silicon carbide microchips that the auto maker can use on all of its next-generation electric vehicles.
SBUX was down 3.4%. The stock jumped 6.9% on Friday following a report from The Wall Street Journal that said activist investor Elliott Investment Management has accumulated a sizable stake in the coffee chain. Elliott has been pushing privately on ways to boost its stock price, the Journal reported, citing people familiar with the matter.
Market News
Google Scraps Plan to Remove Cookies from Chrome
Google is planning to keep third-party cookies in its Chrome browser, it said on Monday, after years of pledging to phase out the tiny packets of code meant to track users on the internet.
The major reversal follows concerns from advertisers - the company's biggest source of income - saying the loss of cookies in the world's most popular browser will limit their ability to collect information for personalizing ads, making them dependent on Google's user databases.
NYCB to Sell More Loans to JPMorgan After $5.9 Billion Deal
New York Community Bancorp, disposing of assets and freeing up cash after its rescue by investors, said it completed selling $5.9 billion of loans to JPMorgan Chase & Co. and plans to sell $200 million more in the near future — going further than previously announced.
The disposals of so-called mortgage warehouse loans will boost NYCB’s common equity Tier 1 capital ratio by about 70 basis points, the company said in a statement Monday. The deal was done at par.
NXP Semi Forecasts Revenue Below Estimates on Auto Weakness, Shares Tumble
NXP Semiconductors forecast third-quarter revenue below analysts' estimates on Monday, as it battles sluggish demand from automotive customers and rising geopolitical risks, sending its shares down about 8% in extended trading.
The company recorded its worst decline in quarterly revenue in four years in the second quarter and its automotive sales slumped the most in more than three years, according to LSEG data.
The Dutch company forecast revenue in the range of $3.15 billion to $3.35 billion, compared to analysts' average estimate of $3.36 billion.