:max_bytes(150000):strip_icc()/Screenshot2024-02-15at3.49.52PM-5fc6482835dd4408977e34036d80660d.png "Deere Shares Slide After Reduced Profit Outlook")
Key Takeaways
- The S&P 500 gained 0.6% on Thursday, Feb. 15, 2024, despite a report showing a sharper-than-anticipated decline in retail sales in January.
- Shares of Wells Fargo soared after U.S. regulators lifted some of the restrictions placed on the bank related to its improper sales practices.
- Farm and construction equipment maker Deere & Co. lowered its profit outlook for 2024, and its shares tumbled.
Major U.S. equities indexes moved higher Thursday, shaking off a report showing a steeper-than-expected decline in January retail sales.
Comments from a Fed official suggesting that the decline in inflation remains on track despite recent setbacks may have helped alleviate the concerns that contributed to a selloff on Tuesday, while strong earnings results buoyed several stocks.
The S&P 500 added 0.6%, and the Dow was up 0.9%. After trading in negative territory in the morning, the Nasdaq staged an afternoon rally to close Thursday’s session 0.3% higher.
Shares of Zebra Technologies (ZBRA), a provider of barcode scanners and other smart data capture solutions, led the way for the S&P 500 on Thursday, jumping 12.2%. Although Zebra faced a sales slowdown and excess inventory in 2023, fourth-quarter revenue and earnings came in ahead of estimates.
Commercial real estate and investment firm CBRE Group (CBRE) also exceeded top- and bottom-line forecasts for the fourth quarter, helping its shares rise 8.5%. Despite a challenging year for the commercial real estate industry, growth remained resilient in several CBRE business lines, led by its global workplace solutions segment.
Shares of Epam Systems (EPAM) gained 8.3% after the software product development firm reported better-than-expected sales and profits for the fourth quarter. The company also guided for revenue growth in 2024 as it aims to capitalize on opportunities related to generative artificial intelligence (AI).
Wells Fargo (WFC) shares moved 7.2% higher amid news that the Office of the Comptroller of the Currency terminated a 2016 consent order related to improper sales practices at the banking giant. The order called for Wells Fargo to alter its processes for selling financial products as well as improve protections for consumers and whistleblowers.
West Pharmaceutical Services (WST) shares plunged 14.1%, marking the heaviest losses among S&P 500 companies on Thursday. The provider of injectable drug packaging and delivery systems beat consensus estimates with its fourth-quarter earnings per share (EPS), but its revenue for the period fell shy of forecasts. The company also issued a weaker-than-expected 2024 outlook as it anticipates softness in near-term demand.
Rollins (ROL), operator of Orkin and other pest control services, matched consensus estimates with its fourth-quarter EPS but undershot revenue expectations. Cold weather and elevated operating costs had an impact on the results. Its shares fell 5.7%.
Shares of Deere & Co. (DE) slipped 5.2% after the manufacturer of farm and construction machinery reduced its 2024 profit guidance. Declining crop prices have left farmers with fewer funds available to buy new tractors and other heavy equipment, pressuring Deere’s sales potential.