U.S. stocks closed nearly unchanged on Tuesday, giving up earlier gains that had vaulted the S&P 500 and Dow Industrial Average to record highs as investors braced for the first Federal Reserve rate cut in 4-1/2 years.
Market Snapshot
The Dow Jones Industrial Average fell 15.90 points, or 0.04%, to 41,606.18, the S&P 500 gained 1.49 points, or 0.03%, to 5,634.58 and the Nasdaq Composite gained 35.93 points, or 0.20%, to 17,628.06.
Market Movers
Intuitive Machines said on Tuesday it has bagged a navigation and communication services contract of up to $4.82 billion from NASA for missions in the near space region. Shares of the space exploration company rose 68% to $9.09 in aftermarket trading and have more than doubled so far this year.
Intel was up 2.7% after saying itscontract-chip-manufacturing business will become an independent subsidiary. Intel also reached a multibillion-dollar agreement for Amazon.com’s Amazon Web Services to manufacture chips at Intel factories using an advanced chip-making technology expected to go into production in 2025. The chip maker also said it would be receiving $3 billion in federal funding to make chips for the Defense Department.
Mobileye Global, the Israeli developer of driver-assistance technology, rose 3.7% after the company wasn’t mentioned as part of what Intel called “the next phase” of its “transformation.” It was reported earlier this month by Bloomberg that Intel was considering options for its stake in Mobileye as part of a chip maker’s overhaul. Intel currently owns 88% of Mobileye.
Microsoft rose 0.9% after the software giant said it wouldboost the quarterly dividendby about 11% to 83 cents a share, and the company’s board authorized a new stock-buyback program of up to $60 billion.
Hewlett Packard Enterprise jumped 5.6% to $18.20 as analysts at BofA Global Research upgraded the stock toBuy from Neutral, and boosted their price target to $24 from $21. The analysts said they see an “opportunity for significant cost cuts” and a “cyclical recovery across servers, storage and particularly networking.” The close of the company’s acquisition of Juniper Networks also is a catalyst for the stock, the analysts said.
Dell Technologies rose 1.2% to $116.82 after shares of the personal-computer maker wereinitiated with an Outperform ratingand price target of $135 at Mizuho. The analysts also initiated coverage of Super Micro Computer at Neutral and a $450 price target. Shares of the server maker were down 2.2% to $439.38.
SolarEdge Technologies was up 2.6% to $22.52 even as shares of the solar-power-equipment maker weredowngraded to Underperform from Holdat Jefferies and the price target was reduced to $17 from $27.
Ferguson Enterprises, the distributor of plumbing supplies, reported adjusted earnings for the fiscal-fourth-quarter ended July 31 of $2.98 on sales of $7.95 billion. Analysts were expecting profit of $2.85 a share on sales of $8 billion. The company expects fiscal 2025 sales growth in the low-single-digit percentage range. The stock was up 5%.
Moderna gained 4.1%. The Canadian government approved the vaccine company’s updatedCovid-19 Spikevaxfor individuals aged six months and older.
Market News
Activist Elliott tells Southwest Air mechanics it still wants CEO's ouster, memo says
Activist investor Elliott Investment Management told one of Southwest Airlines' top unions it still wants to replace CEO Robert Jordan, according to a union memo seen by Reuters, even after the carrier pledged to shake up its board.
Elliott, which owns 10% of Southwest's common shares, met with the Aircraft Mechanics Fraternal Association on Sept. 12, the memo to members said. The union represents about 3,000 mechanics at the Dallas-based airline.
Musk's Neuralink gets FDA's breakthrough device tag for 'Blindsight' implant
Elon Musk's brain-chip startup Neuralink said on Tuesday its experimental implant aimed at restoring vision received the U.S. Food and Drug Administration's "breakthrough device" designation.
The FDA's breakthrough tag is given to certain medical devices that provide treatment or diagnosis of life-threatening conditions. It is aimed at speeding up development and review of devices currently under development.