S&P 500 Gains and Losses Today: Bright Growth Outlook Lifts First Solar Stock

Table of contents

S&P 500 Gains and Losses Today: Bright Growth Outlook Lifts First Solar Stock

Key Takeaways

  • The S&P 500 added 0.3% on Tuesday, May 21, 2024, ahead of a noteworthy earnings report and as a Federal Reserve official expressed caution on rate cuts.
  • First Solar shares soared after UBS analysts boosted their price target on the stock, noting the solar panel maker is poised to benefit from tax credits.
  • Shares of Nordson Corp. sank after the industrial equipment maker lowered its full-year outlook, citing challenges in its electronic end markets.

Major U.S. equities indexes ticked higher on Tuesday ahead of the eagerly awaited quarterly report from semiconductor behemoth Nvidia (NVDA), due to be released after the markets close on Wednesday afternoon.

Investors also heard from Federal Reserve Governor Christopher Waller, who became the latest central bank official to confirm that he needs to see more evidence of a sustainable decline in inflation before supporting an interest rate cut.

The S&P 500 advanced 0.3% on the day, edging past the record posted last Wednesday to notch a new all-time closing high. The Nasdaq added 0.2%, printing its second consecutive record close this week. The Dow was also up 0.2%.

First Solar (FSLR) shares logged Tuesday’s top performance in the S&P 500, jumping 8.0% after UBS boosted its price target on the stock and reiterated its “buy” rating. Analysts expect the solar panel maker to grow its earnings per share (EPS) and gross margin as it benefits from domestic manufacturing tax credits under the U.S. Inflation Reduction Act (IRA).

Shares of Tesla (TSLA) charged 6.7% higher after the company provided an update on its program to develop electric semi-trucks. Although the project has faced delays since its launch in 2017, the company said Monday production-spec deliveries of the Tesla Semi remain on track for 2026. Reports said the company is building a factory in Nevada and expects to eventually ramp up to a capacity of 50,000 EV trucks per year.

Shares of Maryland-based electric utility Constellation Energy (CEG) gained 3.5% after Keybanc increased its price target on the stock. Analysts highlighted Constellation’s initiatives to expand its energy production capacity, including upgrades to its existing fleet, the return to service of plants that had been shut down, and collaborations with other companies.

Dollar General (DG) shares added 3.5% after Zacks included the company on a list of retailers that could be poised for gains after topping first-quarter earnings estimates. According to Zacks, Dollar General could drive market share gains and same-store sales growth through various value-creating initiatives, digitization, and the expansion of its private fleet.

Nordson Corp. (NDSN) shares suffered the S&P 500’s steepest losses, plunging 9.4% after the industrial equipment maker cut its full-year sales and profit guidance. The company pointed to softness in electronic end markets and issues related to the agricultural cycle in Europe as factors behind its more muted outlook.

Shares of Keysight Technologies (KEYS), which makes electronics test and measurement equipment, tumbled 8.4% in the wake of the company’s latest earnings report. Despite beating sales and profit estimates, Keysight reported a year-over-year revenue decline and issued lower-than-expected profit guidance for the current quarter, citing weakness in its consumer electronics and semiconductor end markets.

Walgreens Boots Alliance (WBA) fell 6.4%, descending to its lowest level since 1998. With Tuesday’s losses, Walgreens stock reversed the gains posted last week amid reports the pharmacy giant was seeking possible buyers for its U.K.-based Boots chain. The company has been striving to cut costs as it adjusts to its retail customers limiting their discretionary spending.

Source Reference

Latest stories