U.S. stock indexes endured a topsy-turvy session on Friday but ultimately closed marginally higher, although the small gains did not stop the S&P 500 and Nasdaq Composite from starting 2024 with their worst weekly showing in months.
Market Snapshot
The S&P 500 gained 8.56 points, or 0.18%, to end at 4,697.24 points, while the Nasdaq Composite gained 13.77 points, or 0.09%, to 14,524.07. The Dow Jones Industrial Average rose 25.77 points, or 0.07%, to 37,466.11.
Market Movers
Apple closed 0.4% down. Shares of the tech giant have declined 5.9% so far in 2024. The stock has closed lower for the first three trading days of the year. The last time it declined for the first four days of a calendar year was in 1982, according to Dow Jones Market Data. Two Wall Street firms have downgraded the stock this week.
Palantir Technologies fell 1.7% to $15.98. Analysts at Jefferies downgraded shares of the data-analytics company to Underperform from Hold and the price target was cut to $13 from $18. They said artificial-intelligence hype around the company was overdone.
Agilon Health plummeted 29% after the provider of support services for primary care physicians reduced profit and revenue guidance, citing higher medical costs. The company also cut medical margin guidance for the year ended Dec. 31, 2023, to $340 million to $360 million from $455 million to $470 million.
Medical Properties Trust sank 29% after the real-estate investment trust, the country’s largest hospital landlord, said tenant Steward Health Care System was $50 million behind in rent payments. The company said it hired a financial adviser to assist it with “options to enable the recovery of uncollected rent and outstanding loans.”
QuantumScape fell 6.5%, one day after finishing up 43%. Volkswagen’s battery company, PowerCo, said Thursday that QuantumScape’s solid-state battery cell had “significantly exceeded the requirements in the A-sample test and successfully completed more than 1,000 charging cycles,” indicating progress in a technology that could be cheaper, offer faster charging, and greater driving ranges.
Peloton Interactive rose 9.6% following Thursday’s 14% jump after the at-home exercise company said it was partnering with TikTok to create a fitness hub on the social-media platform.
Constellation Brands rose 2.2% after the beer and wine seller reported fiscal third-quarter earnings of $3.19 a share, beating analysts’ estimates of $3.01, but sales of $2.47 billion that missed expectations of $2.54 billion. The company also lowered its fiscal 2024 guidance, saying it now expects earnings of $9.15 to $9.35 a share, below previous guidance of $9.60 to $9.80.
International Business Machines was downgraded to Sell from Hold by analysts at Societe Generale, who also left their price target unchanged at $143. Jefferies analysts, meanwhile, initiated coverage on the stock with a Hold rating and price target of $180. IBM shares dipped 1.1% to $159.16.
Costco Wholesale said revenue in December jumped 9.9% from a year earlier to $26.2 billion, marking an acceleration over the 5.1% increase in November. Same-store sales rose 8.5%. In November, same-store sales gained 3.5%. Holiday shopping was largely behind the surge. Shares of the membership retail chain rose 1.2%.
Market News
US Job Growth Beats Expectations in December; Wages Rise Solidly
U.S. employers hired more workers than expected in December while raising wages at a solid clip, casting some doubt on financial market expectations that the Federal Reserve would start cutting interest rates in March.
Nonfarm payrolls increased by 216,000 jobs last month, the Labor Department's Bureau of Labor Statistics said in its closely watched employment report on Friday. Data for November was revised lower to show payrolls rising 173,000 instead of 199,000 as previously reported.
Economists polled by Reuters had forecast payrolls increasing by 170,000 jobs. The economy added 2.7 million jobs in 2023, a sharp step-down from the 4.8 million positions created in 2022. That reflects cooling demand for both labor and in the broader economy following 525 basis points worth of rate hikes from the U.S. central bank since March 2022.
Tesla to Fix 1.62 Mln Vehicles in China - Regulator
Tesla is doing an effective recall on 1.62 million vehicles, including its models S, X, 3 and Y in China, the market regulator said on Friday.
The recalls in Tesla's second largest market follow two recalls by the automaker in the United States in December.
Tesla can remotely upgrade the vehicles to fix the issues, the China State Administration for Market Regulation said in a statement. The move is categorised as a product recall under Chinese regulations.
The U.S. automaker will release an over-the-air software update for 1.61 million units.
