Week Ending February 21st, 2024 
Market Moves 


Weekly Recap

• S&P soared to a new record close. While stocks remained mix on Tuesday, the benchmark S&P 500 rose nearly 0.2% and hit a fresh record closing price. With a short trading week as the market was closed on Monday for President's Day, stocks appeared largely cautious on Tuesday. Investors also weighed the potential of the Ukraine war ending as Trump and Putin's teams met in Saudi Arabia on Monday. The Dow Jones Industrial Average and Nasdaq Composite finished barely in the green.
• European stocks saw slight gains. Stocks in Europe held steady on Tuesday as the US and Russia started discussing an end to the war in Ukraine.
• Fed officials to keep interest rates at current levels. Officials signaled a firm belief that rates should stay at current levels to combat rising inflation.
• Treasury yields moved higher. The benchmark 10-year yield rose to trade around 4.54%.
• Earnings season continued on. Results from 46 S&P 500 companies are due this week. Baidu kicked off the week and Alibaba is reporting on Thursday to give an indication of the status of China's tech industry.
• Intel was a big gainer. INTC shares were up around 16% amid reports that rivals could pursue a deal that would see the chipmaker split. The Wall Street Journal reported late Saturday that Broadcom is considering making a bid for Intel’s product business, which designs semiconductors for computers and servers.
• Super Micro Computer shares moved higher. The popular AI play, which has tumbled over the final six months of 2024, rose more than 16%.
• Meta shares headed lower. Meta's stock fell throughout the day Tuesday, putting its 20-session winning streak on Wall Street at risk. Shares of the social media giant fell more than 3%. The stock is up about 22% YTD.
• Nike advanced on a SKIMS partnership. The athletic apparel and footwear retailer was up more than 5% on Tuesday after announcing a partnership with SKIMS. 
• Homebuilder confidence dropped. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index came in at 42 in February, a five-point drop from January and the lowest level in five months.
• A trade war is a big risk. A global trade war is the number one biggest risk to markets, according to 42% of fund managers surveyed by BofA. That's up from 30% in January.

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Tariffs of 25% on Mexico and Canada are set to come next month, while 10% duties on China have already been implemented.

"The combination of strong US economic growth, solid US asset returns, and the threat of tariffs have supported dollar strength in the later part of 2024 and the beginning of this year." - Goldman Sachs 

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Most Active Stocks

• GeneDx Holdings. Corp. (WGS)
• WeRide, Inc. (WRD)
• Oscar Health, Inc. (OSCR)
• Valmont Industries, Inc. (VMI)
• Intel (INTC)
• Super Micro Computer (SMCI)
• Walgreens Boots Alliance (WBA)
• Meta Platforms (META)
• Nike (NKE)
• Arista Networks, Inc. (ANET)

Weekly Notables

 

 

Walgreens Soars on Possible Sycamore Deal

Walgreens shares jumped on Tuesday following a report that the pharmacy chain's talks with private equity firm Sycamore Partners could be back on the table. According to a CNBC report, the deal is "alive" after previously being considered "mostly dead." A convo between the pharmacy chain and Sycamore were first reported in December, with The Wall Street Journal saying Sycamore would likely sell off pieces of the company's business

Intel Saw its Best Trading Day Since March 2020

Shares of Intel rallied 16.1% on Tuesday following a Wall Street Journal report that both Broadcom and Taiwan Semiconductor Manufacturing may be weighing bids that could result in splitting the chipmaker. The stock closed at $27.39 and notched its best day since March 2020. According to the Wall Street Journal reported, Broadcom may consider a play for the company’s chip design and marketing segment, citing people familiar with the matter, while TSMC is interested in a stake or complete control of Intel’s factories. The companies have not filed bids and talks are largely informal.

 

Earnings Spotlight: Alibaba Group Holding Ltd. (BABA)


Chinese e-commerce giant Alibaba is set to announce its fiscal Q3 FY25 results on Thursday, February 20. Wall Street analysts expect the company to report earnings of $2.67 per share, representing a 2.7% increase year-over-year. The stock has gained more than 74% over the past year.