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Key Takeaways
- The S&P 500 slid 0.7% on Friday, March 8, 2024, receding from record highs even as signs of a cooling job market buoyed rate cut expectations.
- Costco shares moved lower after the retailer missed sales estimates and opted against raising membership fees.
- Shares of Carnival Corp. moved higher after analysts said the cruise operator could be poised to raise its guidance.
Major U.S. equities indexes moved lower on the week’s final trading day.
The February jobs report showed an uptick in unemployment, potentially reinvigorating expectations that the Federal Reserve will move to cut interest rates in mid-2024. However, after underpinning the rally that lifted indexes to historic highs, the technology sector lost momentum.
The S&P 500 fell 0.7%, while underperformance by tech stocks contributed to a decline of 1.2% for the Nasdaq. The Dow was down 0.2% on the day.
Shares of Costco (COST) posted Friday’s heaviest losses on the S&P 500, plunging 7.6% after the membership-only warehouse company posted mixed earnings results. Although profits for its fiscal second quarter topped expectations, sales fell short of forecasts. The retailer opted to maintain membership fees at current levels but indicated that potential fee hikes remain on the table.
Broadcom (AVGO) shares tumbled 7.0% after the semiconductor maker’s full-year forecast underwhelmed investors. The company reiterated guidance originally issued in December, dashing expectations that it might raise its outlook after beating first-quarter revenue estimates. Shares of industry peers also moved lower, including a loss of 5.6% for artificial intelligence (AI) chip powerhouse Nvidia (NVDA).
Shares of Maryland-based utility company Constellation Energy (CEG) slipped 5.0%. With Friday’s downturn, the stock gave back a portion of the gains posted at the end of February when the company issued strong full-year guidance and boosted its dividend.
Etsy (ETSY) notched the day’s top performance on the S&P 500 as shares of the online crafts marketplace advanced 5.7%. Although competition in the e-commerce space remains intense, Etsy’s focus on handmade and unique products could help differentiate it from other platforms.
Shares of cruise operator Carnival Corp. (CCL) jumped 4.5% after Stifel analysts boosted their price target on the stock. The analyst team believes that solid demand and pricing strength could position Carnival for a guidance increase when it reports results later this month.
Moderna (MRNA) shares added 3.6%. Although sales of its COVID-19 vaccine have declined, the biotech firm recently reported a surprise profit for the fourth quarter, benefitting from successful cost-control measures. Moderna has also seen encouraging data in trials of the personalized cancer vaccine it is developing in collaboration with Merck (MRK).