Key Takeaways
- The S&P 500 added 0.3% on Monday, Sept. 23, 2024, notching a record close as positivity from last Wednesday’s interest-rate cut carried over into the new week.
- Tesla shares drove higher as analysts said the carmaker could top delivery forecasts and benefit from its upcoming robotaxi launch.
- Shares of Regeneron Pharmaceuticals dropped after a judge rejected the company’s motion to block a biosimilar version of its blockbuster drug Eylea.
Major U.S. equities indexes ticked higher to start the new trading week, continuing the positive momentum for stocks following last Wednesday’s interest rate cut.
The S&P 500 advanced 0.3% to eke out an all-time closing high. A daily gain of 0.1% lifted the Dow to its third consecutive record close, while the Nasdaq closed Monday’s session 0.2% higher.
Tesla (TSLA) shares jumped 4.9%, the best performance of any stock in the S&P 500, following an upbeat forecast from the investment bank Barclays. Meanwhile, analysts at Goldman Sachs and BofA Securities said Tesla’s robotaxi launch event scheduled for next month could be an additional catalyst for the stock.
Shares of Bath & Body Works (BBWI) added 3.6% on Monday after analysts at TD Cowen downplayed the impact of ocean freight issues on the retailer of fragrances and personal care products. According to the research firm, companies with exposure to ocean-based shipments could experience delays and higher costs, but Bath & Body Works appears to have its inventory for fall and winter already in place.
Intel (INTC) shares gained 3.3% amid reports that alternative asset manager Apollo Global Management has offered to make an equity-like investment in the chipmaker worth as much as $5 billion. Apollo’s bid followed inquiries from rival chipmaker Qualcomm (QCOM) about a potential friendly takeover of Intel.
Shares of Regeneron Pharmaceuticals (REGN) dropped 4.6%, the weakest performance in the S&P 500, after a judge rejected the company’s attempt to block a similar version of its blockbuster drug Eylea. Regeneron argued that the product created by competitor Amgen (AMGN) violated dozens of patents related to the medication, which is used to treat macular degeneration and other eye diseases.
Analysts at Raymond James downgraded shares of credit rating firm Moody’s (MCO) to “underperform,” suggesting consensus expectations for revenue from the company’s rating business could be overblown. Moody’s shares fell 3.2% on Monday, receding from an all-time high posted in the previous session.
A downgrade from an investment research firm also weighed on shares of cosmetics retailer Ulta Beauty (ULTA), which lost 2.0%. Analysts at TD Cowen said the beauty products provider faces increased competition in the medium term that will require investments in exclusive products and enhancements to the in-store experience.
General Motors (GM) shares slipped 1.7% after investment research firm Bernstein downgraded the carmaker’s stock to “market perform” from “outperform.” Analysts said a buildup of inventory in the U.S. could pressure pricing over the coming year, while losses from GM’s autonomous vehicle division and the struggle to ramp up EV production represent additional headwinds.