Key Takeaways
- The S&P 500 finished flat on Monday, May 13, 2024, amid concerns about rising prices ahead of inflation data due later in the week.
- Incyte shares jumped higher after the biopharmaceutical firm authorized a $1.67 billion share repurchase plan.
- Shares of electric utility Vistra Corp. tumbled, giving back a portion of the gains posted last week after the stock became the latest S&P 500 constituent.
Major U.S. equities indexes were mixed and little changed Monday to kick off a new trading week that will provide investors with a few key economic data points.
The latest monthly survey by the Federal Reserve Bank of New York released Monday showed that consumer expectations for inflation over the coming year rose in April. Inflation will likely remain in focus, with the Consumer Price Index (CPI) report set to be released on Wednesday, potentially influencing the Federal Reserve’s upcoming policy moves.
The S&P 500 was essentially flat, ending the day less than 0.1% lower. The Dow slipped 0.2%, marking its first losing session following eight consecutive daily gains. Technology was the strongest-performing sector, helping the Nasdaq close 0.3% higher.
Vistra Corp. (VST) shares dropped 3.5%, marking the weakest performance in the S&P 500 Monday. The electric utility stock took off last week after it became the newest constituent of the benchmark index. However, the company recently reported a year-over-year decline in revenue for the first quarter.
Shares of GE Vernova (GEV), the energy division that completed its spinoff from the GE conglomerate in April, slid 3.4%. Over the weekend, former president and Republican presidential candidate Donald Trump promised to issue an executive order restricting offshore wind energy should he return to the White House. GE Vernova is a key provider of wind turbine technologies and services.
Shares of precision instrument manufacturer Mettler Toledo (MTD) fell 3.2%. Monday’s losses reversed a portion of the stock’s gains Friday following a strong quarterly earnings report. The maker of scales and other analytical devices beat quarterly sales and profit estimates, driven by strength in its laboratory segment, but its revenue and net income dropped compared with the year-ago period.
Incyte (INCY) shares posted the strongest gains in the S&P 500, jumping 8.6% after the biopharmaceutical firm announced that it would buy back $1.67 billion worth of shares in a Dutch auction tender. Incyte’s CEO said the repurchase authorization reflects the firm’s strong confidence in its commercial product portfolio and clinical development pipeline.
Moderna (MRNA) shares gained 7.1%, clawing back the losses posted Friday after the biotech firm said the Food and Drug Administration (FDA) had delayed its approval decision on mRNA-1345, the company’s vaccine against respiratory syncytial virus (RSV). The delay puts Moderna at a disadvantage versus GSK (GSK) and Pfizer (PFE), whose RSV vaccines have already received approval, but Moderna still expects a commercial launch in the third quarter of 2024. In addition, Morningstar included Moderna on a list of undervalued stocks on Monday, projecting the firm will be profitable by 2026.
Shares of Walgreens Boots Alliance (WBA) advanced 5.4% amid reports that the pharmacy giant is seeking possible buyers for its U.K.-based Boots pharmacy chain. This is not the first time that Walgreens has explored options for selling Boots—in June 2022, the company announced that it was giving up on talks to sell the unit as volatile financial markets prevented prospective buyers from making offers Walgreens would find attractive.