Key Takeaways
- The S&P 500 added 0.8% on Thursday, Sept. 12, 2024, extending its winning streak to four days as the latest PPI data showed a softening in wholesale inflation.
- Warner Bros. Discovery shares surged after entertainment giant renewed its distribution deal with Charter Communications. Kroger’s stock rose on earnings news.
- Moderna said it will cut back on research and development spending, and shares of the vaccine maker plunged.
Major U.S. equities indexes headed higher after the latest Producer Price Index (PPI) report showed a cooldown in wholesale inflation in August, the latest data point that could tip the scales toward an interest-rate cut when the Federal Reserve meets next week.
The S&P 500 added 0.8% on Thursday, extending a winning streak for the benchmark index that dates back to the beginning of the week. The Nasdaq was up 1%, while the Dow added 0.6%.
Shares of Warner Bros. Discovery (WBD) led the S&P 500 higher, soaring 10% after the entertainment giant renewed its distribution deal with Charter Communications (CHTR), the country’s largest pay TV provider. Under the terms of the new deal, inked by the two companies a year before the expiration of their existing agreement, Charter will increase the fees it pays to carry certain Warner Bros. Discovery TV channels, while fees for TNT will remain stable, despite the network’s loss of its NBA broadcasting rights.
Kroger (KR) shares surged 7.2% after the country’s largest supermarket chain reported better-than-expected adjusted profit for the second quarter. Kroger’s CEO expressed confidence in the company’s position as it aims to complete its acquisition of Albertsons grocery stores, even as federal regulators take measures to block the deal.
Shares of Axon Enterprise (AXON), maker of the Taser and other law enforcement equipment, gained 6.3% as JMP Securities boosted its price target on the stock. Analysts highlighted the growth trajectory of Axon’s Taser 10 and Body Camera 4, as well as its software tools. Axon also has drawn attention for its Draft One software, which uses artificial intelligence (AI) technology to generate an initial incident report using audio recorded by officers’ body cameras.
Moderna (MRNA) shares lost more than any other S&P 500 constituent, plunging 12% as the biotechnology firm said it would cut its research and development pipeline. As part of the cost-cutting measure, Moderna will suspend or end development of certain products while focusing on later-stage trials.
Shares of solar technology firm Enphase Energy (ENPH) slipped 4.3%. Thursday’s losses gave back a portion of the gains notched after Tuesday’s presidential debate. Vice President Kamala Harris’ performance was seen as lifting the outlook for green energy policies, helping drive a rally for industry stocks.
The Office of the Comptroller of the Currency (OCC), a federal agency that oversees the banking industry, issued an enforcement action order on Thursday against financial giant Wells Fargo (WFC). The regulatory action is related to the bank’s anti-money laundering (AML) and financial crimes risk management practices. Wells Fargo shares dropped 4%.