Freeport-McMoRan Boosted by Record Copper Prices

Major U.S. equities indexes were mixed to close out a trading week that saw all three market gauges pop to all-time highs amid renewed optimism about interest rate cuts.

The S&P 500 edged 0.1% higher on Friday, ending the week just a few points shy of the record closing high it reached on Wednesday. The Dow added 0.3% to log a new record and notch its first close in history above 40,000 points. The Nasdaq ended Friday with a minimal loss of less than 0.1%.

Valero Energy (VLO) shares jumped 4.8%, marking the S&P 500’s top performance on Friday. Although Argus downgraded the oil refiner’s stock to “hold” on Thursday, citing a likely slowdown in profit growth for the refining sector in the second half of 2024, the analysts recognized Valero as a top player in the industry, noting the company benefits from scale, portfolio diversification, and a first-mover advantage in renewable diesel fuel.

Shares of copper and gold miner Freeport-McMoRan (FCX) gained 4.2%. Copper prices popped to record highs this week, with expectations for strong demand from data centers. Friday’s gains lifted Freeport shares to a 52-week high.

Chubb (CB) shares added 3.6% on Friday, extending gains posted in the previous session after Warren Buffet’s Berkshire Hathaway (BRK.A) disclosed it had accumulated a $6.7 billion stake in the property and casualty insurer. Berkshire began buying Chubb shares last year but received permission from the Securities and Exchange Commission (SEC) to keep the position confidential for a limited period.

Paramount Global (PARA) shares tumbled 4.9%, making the stock the weakest performer in the S&P 500 for the second day this week after it suffered an even steeper decline on Tuesday. The decline on Friday came amid reports that Paramount’s board of directors is exploring options to replace CEO Bob Bakish with a committee of executives that would oversee the company as it continues to negotiate a potential sale.

Shares of Dollar Tree (DLTR) and Dollar General (DG) fell 3.3% and 3.0%, respectively. Both discount retailers were coming off a strong day of trading on Thursday, buoyed by strong earnings results from rival Walmart (WMT). However, they gave back those gains in Friday’s session. Challenges for discount store operators include inflation-weary consumers tightening their spending and losses from shoplifting.

Shares of semiconductor equipment firm Lam Research (LRCX) sank 3.3%, reversing gains posted earlier in the week after Jefferies analysts initiated coverage of the stock on Monday with a “buy” rating. Although Lam Research maintains a top position in the tech market that should underpin demand from the world’s largest chipmakers, it faces significant charges related to restructuring initiatives and business process improvements.