Key Takeaways
- The S&P 500 added 0.5% on Tuesday, May 14, 2024, boosted by an afternoon rally ahead of Wednesday’s eagerly awaited Consumer Price Index (CPI) report.
- Shares of Insulet moved higher, marking a reversal from last week’s post-earnings downturn, amid strong growth expectations for its Omnipod insulin pump.
- Paramount Global shares plunged following reports that Sony Pictures was reconsidering its offer to purchase the media giant.
Major U.S. equities indexes hovered close to their flatlines for most of the session before rallying in the afternoon to end Tuesday higher.
A report released in the morning showed a greater-than-expected jump in wholesale inflation in April, perhaps keeping a lid on stock gains for much of the day. But more inflation data is on the way Wednesday morning with the release of the latest Consumer Price Index (CPI) figures, which could tip the scale as the Federal Reserve weighs possible interest rate cuts.
The S&P 500 gained 0.5%. The Nasdaq was up 0.8%, bolstered by outperformance from the tech sector, while the Dow advanced 0.3%.
Shares of Insulet (PODD) led the S&P 500 higher on Tuesday, jumping 7.0%. The gains marked a reversal from heavy losses posted last week when the manufacturer of insulin management systems for patients with diabetes released mixed quarterly results. Although profits fell short of expectations, Insulet beat sales estimates and boosted its full-year revenue forecast, highlighting its Omnipod insulin pump as a growth driver.
Enphase Energy (ENPH) shares added 5.7%, and other solar stocks also moved higher, after President Joe Biden imposed sweeping tariffs on a variety of imports from China, including solar cells, semiconductors, steel, and electric vehicles (EVs). Shares of EV maker Tesla (TSLA) were up 3.3% following the tariff announcement.
Shares of server and data storage provider Super Micro Computer (SMCI) posted gains of 5.0%. Supermicro stock has cooled down since soaring above $1,000 per share in March, but the company remains well positioned to benefit from major tech firms increasing their spending on artificial intelligence (AI) infrastructure.
Paramount Global (PARA) shares suffered the S&P 500’s steepest decline, plunging 5.2% amid reports that Sony Pictures could be having second thoughts about its offer to acquire the media giant. Sony and private equity firm Apollo Global Management expressed interest earlier this month in purchasing Paramount for $26 billion in cash.
Shares of agribusiness Bunge Global (BG), the world’s largest soybean producer, dropped 3.9%. The company recently announced it would temporarily suspend activities at its soybean crushing and port facility in Rio Grande, Brazil, as devastating floods in the region threaten supplies.
FedEx (FDX) shares lost 3.0% on Tuesday. Although successful cost-cutting initiatives helped the logistics and package delivery company beat profit estimates in its most recently reported quarter, FedEx faces a tough competitive environment, and its business remains dependent on global economic growth.
Shares of Marathon Petroleum (MPC) slipped 1.9% as the integrated energy firm announced changes to its management team. President Maryann Mannen is set to take over as chief executive officer from Michael Hennigan starting Aug. 1. Hennigan will stay on as executive chair following his departure from the CEO position.