The Dow Jones Industrial Average eked out a gain and closed at a record on Friday, capping a big rally for the week that came after the first major easing of interest rate policy by the Federal Reserve in four years.
Market Snapshot
The Dow Jones Industrial Average closed up 0.09%, to 42,063.36, the S&P 500 ended down 0.19%, to 5,702.55 and the Nasdaq Composite rounded out the week 0.36% lower, at 17,948.32.
Market Movers
Shares of FedEx tumbled 15% after the shipping and logistics company reported fiscal first-quarter adjusted earnings that widely missed Wall Street estimates amid a slump in demand, and cut its fiscal 2025 outlook. FedEx reported adjusted earnings of $3.60 a share on sales of $21.6 billion while analysts expected a profit of $4.75 a share on sales of $21.9 billion. For fiscal 2025, FedEx said it expects adjusted earnings of $20 to $21 a share, compared with a prior outlook of $20 to $22. Revenue growth was forecast in the low-single-digit percentage, compared with a prior forecast of a low-to-mid single-digit increase. Rival United Parcel Service fell 2.7%.
Chip giant Qualcomm made a takeover approach to rival Intel in recent days, according to people familiar with the matter, in what would be one of the largest and most consequential deals in recent years. Shares in Qualcomm closed down around 3% while Intel closed up over 3% Friday after the Journal’s report.
Nike announced that CEO John Donahoewould be retiring on Oct. 13 after nearly five years leading the athletic shoe, apparel, and gear company. The stock gained 6.9%. Donahoe will be replaced by company veteran Elliott Hill, who retired in 2020 as Nike’s president of consumer and marketplace. Nike stock has struggled in recent years partially from a slowdown in China, and competition from Deckers Outdoor’s Hoka brand and On Holding.
Lennar posted fiscal third-quarter adjusted earningsthat beat estimates, and said the Federal Reserve’s move this week to reduce short-term interest rates will increase housing demand. Revenue in the period rose to $9.42 billion from $8.73 billion a year earlier and beat analysts’ consensus of $9.14 billion. Lennar’s deliveries rose 16% to 21,516 homes, and new orders rose 5% to 20,587 homes. Shares of the home builder, however, ended 5.3% lower.
Trump Media & Technology Group, which operates the Truth Social platform, fell 7.8%. Former U.S. President Donald Trump, the largest holder of stock in Trump Media, and other insider investors in the company as of Fridaycan sell sharesas the lockup period expires. Trump has said he doesn’t plan to sell any stock.
Constellation Energy soared 22% after the company signed an agreement with Microsoft under which Constellation would restart the undamaged reactor at Three Mile Island, the site of the worst nuclear accident in U.S. history, and sell the power to the software giant. Vistra, which owns multiple nuclear reactors, was up 17%.
Intel stock rose 3.3% after a report from the Wall Street Journal said Qualcomm had approached the firm about a takeover. The report cited people familiar with the situation who said “a deal is farm from certain. Qualcomm stock was down 2.9%.
Bank of America dipped 1.5% after Warren Buffett’s Berkshire Hathaway resumed sales of the stock in recent days, selling about $900 million worth of shares anddropping its stake in the big bankto $34 billion, or 10.8% of the shares outstanding.
ASML, the Dutch supplier of lithography machines essential for manufacturing semiconductors, declined 4% after analysts at Morgan Stanley downgraded the stock to Equal weight from Overweight.
MillerKnoll fell 15% after the office furniture company’s fiscal first-quarter earnings and revenue missed analysts’ estimates, and the firm issued weak second-quarter guidance.
Market News
SEC approves BlackRock's spot bitcoin ETF options listing
The U.S. Securities and Exchange Commission has approved listing and trading of options for asset manager BlackRock's spot bitcoin exchange-traded fund on the Nasdaq.
Options trading for BlackRock's fund iShares Bitcoin Trust has been approved with ticker symbol "IBIT", the regulator said in a notice on Friday.
J&J unit files for bankruptcy to advance $10 billion talc settlement
A Johnson & Johnson subsidiary filed for bankruptcy for a third time on Friday as the healthcare giant seeks to advance an approximately $10 billion proposed settlement that would end tens of thousands of lawsuits alleging that the company's baby powder and other talc products caused cancer.
J&J faces lawsuits from more than 62,000 claimants who alleged that its baby powder and other talc products were contaminated with asbestos and caused ovarian and other cancers. To stop those lawsuits, J&J subsidiary Red River Talc filed for bankruptcy protection in a federal bankruptcy court in Houston.