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Key Takeaways
- The S&P 500 slipped 0.5% on Thursday, April 25, 2024, as data showed a slowdown in economic growth and an uptick in inflation in the first quarter.
- Shares of Meta Platforms tumbled as the social media giant forecast higher AI-related expenses.
- Newmont shares moved higher after the miner beat quarterly estimates, boosted by strong production and high gold prices.
Major U.S. equities indexes tumbled as data showed a slowdown in economic growth and an uptick in inflation in the first quarter. The combination of sluggish growth and persistent inflation added to uncertainty surrounding if and when the Federal Reserve will decide it’s appropriate to lower interest rates. The S&P 500 fell 0.5% on Thursday, while the Dow and the Nasdaq were down 1% and 0.6%, respectively.
Meta Platforms (META) shares suffered Thursday’s heaviest losses in the S&P 500, plunging 10.6% following the social media giant’s first-quarter 2024 earnings report. Although Meta exceeded quarterly profit and sales forecasts, the Facebook and Instagram parent raised its full-year capital expenditure guidance, citing higher legal costs and increased spending to build out its artificial intelligence (AI) infrastructure.
Shares of Textron (TXT) dropped 9.7% after the aerospace and defense contractor announced a restructuring program that includes the elimination of around 1,500 jobs. Cancellations of U.S. Army projects involving the development of an unmanned aircraft and a scout helicopter have had a negative impact on Textron’s performance, while the company has also seen lower demand for products in its specialized vehicles business.
Although Bristol Myers Squib (BMY) topped revenue estimates and posted a narrower-than-expected quarterly loss, its shares fell 8.5%. The losses came as the biopharmaceutical firm lowered its full-year profit guidance and announced an initiative to cut $1.5 billion in costs by 2025.
International Business Machines (IBM) shares slid 8.3% after the computing and consulting giant posted lower-than-expected revenue for the first quarter. The CFO of “Big Blue” noted that clients were tightening their discretionary spending in response to macroeconomic uncertainties. IBM also confirmed its plan to acquire cloud software maker HashiCorp (HCP) in a cash deal valued at $6.4 billion.
Newmont (NEM) shares surged, logging the top performance among S&P 500 constituents with a jump of 12.5%. The world’s largest gold miner beat estimates with its top- and bottom-line results for the first quarter, boosted by strong production and pricing as well as a decrease in operating expenses.
Tyler Technologies (TYL), which provides software and IT solutions to the public sector, topped estimates with its first-quarter sales and profits, and its shares gained 9.3%. Increased digitization efforts and migration of data to the cloud by government entities helped underpin the strong results.
Shares of Carrier Global (CARR) gained 9.2% after the heating, ventilation, and air conditioning (HVAC) provider reported better-than-expected first-quarter profits. Cost-control initiatives helped the company boost its adjusted operating margin during the quarter.