Major U.S. stock indexes edged higher midweek, driven by strong performances in the consumer discretionary and tech sectors.
The S&P 500 rose by 0.2% on Wednesday, achieving its second consecutive day of gains. The Nasdaq climbed 0.5%, while the Dow posted a modest gain of less than 0.1%.
FedEx (FDX) emerged as the day’s standout, surging 15.5%. The package delivery company reported better-than-expected sales and profits for its fiscal fourth quarter of 2024. CEO Raj Subramaniam attributed the success to ongoing cost-cutting measures and forecasted continued momentum into the next fiscal year, emphasizing enhancements in the flexibility and efficiency of FedEx’s network.
Albemarle (ALB), the largest global lithium producer, saw its shares jump 8.1% following news of additional auctions for lithium, a crucial element in electric vehicle (EV) batteries. The company aims to boost transparency in the lithium market and secure more contracts with car manufacturers.
Tesla (TSLA) shares rose 4.8% after investment bank Stifel initiated coverage with a “buy” rating. Analysts pointed to Tesla’s potential for robust growth through updates to existing models, new car launches, and advances in full self-driving (FSD) technology.
Amazon (AMZN) gained 3.9% after Bank of America raised its price target for the stock. The financial institution highlighted Amazon’s potential for increased efficiency and margin expansion in the current year. This rally pushed Amazon’s market capitalization above $2 trillion for the first time, making it the fifth U.S. company to reach this milestone.
In contrast, Moderna (MRNA) experienced a significant drop, plunging 11.0%. The decline followed the company’s announcement that its vaccine for respiratory syncytial virus (RSV) was about 50% effective after 18 months, less effective than rival vaccines from GSK (GSK) and Pfizer (PFE). Moderna’s RSV vaccine received FDA approval last month.
Aptiv (APTV), a provider of automotive technology, saw its shares fall by 7.9% after Piper Sandler downgraded the stock to “underweight” and lowered its price target. Analysts expressed concerns over a new joint venture between Volkswagen (VWAGY) and EV maker Rivian (RIVN) to develop vehicle software and electrical components, which could limit sales opportunities for Aptiv. Rivian shares, however, surged 23.2% on the news.
Paychex (PAYX) shares dropped 6.1% after the payroll services company released its quarterly earnings. Although the results met analysts’ expectations, the company’s forward outlook was disappointing. Paychex cited challenges faced by small and medium-sized businesses related to the job market, regulations, and inflation.
