Key Takeaways
- The S&P 500 added 0.3% on Tuesday, Sept. 24, as a report showed a slump in consumer confidence and China unveiled an economic stimulus package.
- Shares of mining giant Freeport-McMoRan soared as copper prices jumped following Beijing’s monetary policy announcement.
- Visa shares tumbled after the U.S. Department of Justice filed an antitrust lawsuit against the credit card issuer.
Major U.S. equities indexes ticked higher on Tuesday, shaking off a report that revealed a steeper-than-expected drop in consumer confidence this month.
The S&P 500 added 0.3%, while the Dow advanced 0.2%, building on record closes from the previous session to print new all-time highs. The Nasdaq was up 0.6% on the day.
The Chinese government revealed stimulus measures designed to jolt the country’s sluggish housing and financial markets, helping lift U.S.-listed Chinese stocks and shares of other companies with exposure to the world’s second-largest economy.
Shares of mining giant Freeport-McMoRan (FCX) soared 7.9% higher as copper prices popped higher following Beijing’s monetary policy announcement. The property market is a key focus of China’s stimulus package, and a potential recovery in the sector could support additional strength in the price of copper, a key material for wiring and pipes used in new construction. That helped the mining stock secure the day’s top performance in the S&P 500.
China’s monetary policy shift also helped lift shares of consumer-facing companies that do business in the country. Shares of cosmetics maker Estee Lauder (EL) gained 6.1% on Tuesday. The company reportedly generates nearly a third of its revenue in the Asia-Pacific region, with the lion’s share of those sales coming from China.
Shares of casinos with exposure to China through their presence in Macau also moved higher in the wake of the stimulus news. Sands China, a subsidiary of Las Vegas Sands (LVS), announced that it is bringing The Luxury Collection to Macau in collaboration with Marriott International (MAR) in January 2025. Las Vegas Sands shares added 5.4% on Tuesday, while shares of fellow casino operator Wynn Resorts (WYNN) were up 4.9%.
Global Payments (GPN) shares tumbled 6.5%, posting the steepest loss in the S&P 500, after the provider of payment processing solutions issued a lower-than-expected profit forecast for the full year. At an investor conference on Tuesday, the company’s chief financial officer (CFO) said Global Payments foresees a year of transition in 2025.
Losses in the payment-processing industry were not confined to Global Payments. Visa (V) shares fell 5.5% following reports that the U.S. Department of Justice (DOJ) filed an antitrust lawsuit against the credit card issuer. The government agency alleges Visa has engaged in monopolistic tactics to maintain its top position in the credit card market.
Shares of medical supply and pharmaceutical distributor McKesson (MCK) dropped 4.9% after the financial services firm Baird downgraded the stock to “neutral.” Analysts cited waning trust in McKesson’s capacity to exceed expectations and suggested the company may need to adjust its strategy to regain the confidence of the investment community.
Regeneron Pharmaceuticals (REGN) shares slipped 4.2% on Tuesday, extending declines posted in the previous session after the drugmaker lost a legal bid to block a biosimilar version of its blockbuster drug Eylea. A federal judge in West Virginia ruled against an injunction requested by Regeneron that would have prevented Amgen (AMGN) from bringing Eylea competitor Pavblu to market. In a complaint filed against Amgen at the beginning of 2024, Regeneron claimed the biosimilar drug infringed on 32 patents. Regeneron immediately appealed this week’s decision.