:max_bytes(150000):strip_icc()/Screenshot2024-02-21at3.41.25PM-99a9a794bc8d443fb64926975c561759.png "Cybersecurity Stocks Fall Amid Lower Sales Outlook")
Key Takeaways
- The S&P 500 added 0.1% on Wednesday, Feb. 21, 2024, after spending most of the session in the red as the latest Fed minutes confirmed that officials would tread carefully on rate cuts.
- Palo Alto Networks shares plunged as the cybersecurity firm reduced its revenue forecast and said it would shift its strategy to focus on growth.
- Shares of EQT Corp. and other natural gas companies advanced alongside surging natural gas prices after Iranian officials accused Israel of sabotaging a pipeline.
Major U.S. equities indexes were mixed as minutes from the Federal Reserve’s latest policy meeting showed policymakers remain uncertain about how long it will be necessary to maintain elevated interest rates.
An afternoon rally helped the S&P 500 and the Dow eke out gains of around 0.1% in Wednesday trading. The tech-heavy Nasdaq dropped 0.3% ahead of an eagerly anticipated earnings report from semiconductor giant Nvidia (NVDA) which was released after the closing bell.
Wednesday’s top performance on the S&P 500 belonged to energy exploration and pipeline transport company EQT Corporation (EQT). EQT shares soared 10.6% alongside a surge in natural gas prices after Iran’s oil minister alleged that explosions along an Iranian gas pipeline last week were the result of Israeli sabotage. Other companies with natural gas exposure also saw gains, with shares of Coterra Energy (CTRA) adding 6.2%.
Shares of Garmin (GRMN) advanced 8.8% after the producer of fitness trackers and navigation devices reported better-than-expected sales and profits for the full year. Demand for Garmin’s auto and fitness products helped drive the strong performance.
Exelon (EXC) shares jumped 4.3% following a strong earnings report. The public utility beat top- and bottom-line forecasts for the fourth quarter, boosted its dividend and announced increased capital spending as it looks to shore up its grid.
Shares of Palo Alto Networks (PANW) plummeted 28.4%, marking the heaviest loss among S&P 500 stocks. The cybersecurity firm reduced its revenue forecasts for the current quarter and the full year, pointing to “spending fatigue” among some of its customers. Palo Alto plans to adjust its strategy to concentrate on growth. Other cybersecurity stocks also moved lower, with shares of competitor Fortinet (FTNT) down 3.8%.
Keysight Technologies (KEYS), a provider of test and measurement equipment and software, topped consensus sales and earnings estimates with its results for the fiscal first quarter of 2024. However, sales were down from the prior-year period amid restrained customer spending and a slump in the aerospace and defense markets. Keysight shares fell 6.7%.
International Flavors & Fragrances (IFF) shares sank 6.4% after the producer of scent ingredients reported lower-than-expected profits for the fourth quarter of 2024. Weakness in the pharma and nourish segments dragged on the results, and the company cut its dividend by 50%.