Onsemi Stock Jumps as Car Industry Drives Sales Beat

Major U.S. equities indexes were mixed and little changed on the first trading day of the week. The S&P 500 and the Nasdaq eked out gains of less than 0.1%, while the Dow closed Monday’s session 0.1% lower.

While traders widely expect the Federal Reserve to hold interest rates steady at its policy meeting set to conclude on Wednesday, observers will be digging into the central bank’s statement for indications that a rate cut is on tap for September.

Meanwhile, earnings reports from big tech firms will likely take center stage throughout the week, with Apple (AAPL), Facebook parent Meta (META), Amazon (AMZN), and Microsoft (MSFT) all scheduled to release quarterly results.

ON Semiconductor (ON) shares notched the top performance of any stock in the S&P 500 on Monday, skyrocketing 11.5% after the chipmaker reported better-than-expected revenue for the second quarter. Onsemi pointed to strength in the automotive industry, highlighting a recently signed multi-year agreement to supply Volkswagen (VWAGY) with semiconductors for its electric vehicles (EVs). The company also touted strategic investments to expand its product portfolio.

Shares of medical device manufacturer Revvity (RVTY) added 9.1% after the company topped sales and profit forecasts with its second-quarter results. Although revenue in the firm’s life sciences division slipped from the prior year, sales in the diagnostics segment ticked higher, and solid demand for diagnostics products encouraged Revvity to boost its full-year earnings per share (EPS) guidance.  

Shares of fellow medical technology provider ResMed (RMD) gained 5.8% after Zacks Equities Research highlighted the stock as a potential pick for growth investors, citing projected profit growth and a strong cash position. ResMed shares came under pressure last month after a weight loss treatment from Eli Lilly (LLY) showed effectiveness at reducing the severity of sleep apnea among obese patients, potentially limiting the sales of ResMed’s sleep apnea masks. However, ResMed’s CEO has indicated the news could increase awareness about sleep apnea and drive growth for the company’s devices.

Solar stocks moved lower on Monday following news that federal officials have expressed concerns about hackers potentially targeting the renewable energy sector. A memo from the Federal Bureau of Investigations (FBI) reportedly described how malicious actors could attack solar infrastructure and outlined measures that companies in the industry could take to protect themselves. Shares of solar technology firm Enphase Energy (ENPH) sank 4.7%, marking the steepest daily losses in the S&P 500, while shares of solar panel manufacturer First Solar (FSLR) slipped 2.8%.

Shares of cloud-based enterprise software provider ServiceNow (NOW) fell 3.5% on the day. Monday’s losses mark a retreat from the stock’s record high posted last week after ServiceNow reported better-than-expected sales and profits, with solid growth in subscription revenue driven by demand for artificial intelligence (AI) products.

Southwest Airlines (LUV) shares dropped 3.4% on Monday. The carrier made headlines last week when it announced that it would abandon its longstanding policy of open seating and begin operating overnight flights. Southwest remains under pressure from activist investor Elliott Investment Management, which announced in June that it had accumulated a sizable stake in the company and continues to call for leadership changes even after last week’s strategy shift.