Equity Indexes Wrap: No Corner of Market Spared from W💝idespread Sell-Off

The Dow

All 30 of the stocks in the Dow Jones Industrial Average closed in the red on Wednesday. Walt Disney (DIS) led the index lower, falling 2.8%. 

Salesforce (CRM) shares fell 1.6% after Wells Fargo downgraded the stock to equal weight from overweight, saying the stock, which has nearly doubled this year, has likely maxed out its benefits from a year of cost cuts and 🐈margin expansion.

Meanwhile, Wells Fargo named Microsoft (MSFT) a top software pick for 2024, saying it stands to benefit from improved IT spending. Micro🐽soft shares fell 0.7%.

Shares of Home Depot (HD) fell 1% despite analysts at Stifel raising their price target on the stock to $355 from $306. 

The S&P 500

CVS Health (CVS) led the index, rising 1.4%.

FedEx (FDX) pulled the index lower, falling 12.1% after its quarterly earnings and current-quarter guidance fell short of Wall Street estimates amid sluggis🌄🤡h demand. 

Aon Plc (AON) lost 6.1% after it said it would buy middle-market ins𒈔urance broker NFP for $13.4 billion. 

The year’s laggards fell further—glucose monitoring system maker DexCom (DXCM) and fertilizer company Mosaic (MOS) both fell more than 5%. Solar stock Enphase Energy (ENPH) and lithium miner Albemarle (ALB), both battered this year by high intere♛st rates, fell 5.4% and 4.3%, respectively.

Regional and mid-size banks like M&T Bank (MTB), Citizens Financial (CFG), and Charles Schwab (SCHW), which have been buoyed by the recent bond market rally, all fell over 3% despite Tr⭕easurys 🧸advancing. 

General Mills (GIS) shares dropped 3.6% after reporting worse-than-expected quarter🍒ly sales and cutting its full-year sales and earnings﷽ guidance.

Shares of Citigroup (C) fell 1.7% amid reports it would shutter its distressed-debt trading business. The news comes less than a week after the bank said it would exit the municipal bond market. 

The Nasdaq 100

Atlassian (TEAM) rose 1♌.9%, leading the index’s small cohort of gainers.

Google-parent Alphabet (GOOGL) gained 1.2% following reports it would restructure its 30,000-person ad sales unit as it incorporates generative AI in🉐to its ജprimary advertising business. 

Chip stocks sank, led by Micron (MU) and Onsemi (ON), each down 4.2%. Advanced Micro Devices (AMD) fell 3.3% and market leader Nvidia (NVDA) lost 3%. 

General Mil🐭ls Falls on Lower Sales, Trimmed🧔 Outlook

General Mills (GIS) 澳洲幸运5开奖号码历史查询:shares dropped over 3%🐭 in intraday trading Wednesday after the cereal giant missed sales estimates and cut its outlook as higher prices led consumers to 𒁃shift to lower-priced brands.

The maker of Cheerios cereal, Blue Buffalo pet food, and other packaged food products reported second-quarter fiscal 2024 revenue dropped 1.6% from a year ago to $5.14 billion, almost a quarter of a billion dollars below forecasts. 澳洲幸运5开奖号码历史查询:Earnings per share at $1.25 exceeded expectations.

The company lowered its full-y♐ear organic revenue outlook to between flat to down 1%, compared to its earlier guꦡidance of 3% to 4% growth. It anticipates EPS up 4% to 5% versus the previous 4% to 6%.

Shares of General Mills have lost more than one-fifth of theiꦜr value🍸 this year.

-Bill McColl

Aon to Acquire Insurance ♊Broker NFP for $13.4 🅷Billion

Management consultant Aon (AON) said it would 澳洲幸运✤5开奖号码历史查询:buy middle-market insurance firm NFP in a cash and stock deal worth $13.4 billion.

The deal announced Wedn✃esday will be funded by $7 billion of cash and $6.4 billion of Aon stock. Aon said it expects the transaction to deliver more than $2.8 billion in pre-tax gains, net of $400 million in transac𝓡tion and integration costs.

The deal is expected to close in mid-2024 and have a positive effect on adjusted 澳洲幸运5开奖号码历史查询:earnings per share by 2027.

Shares of Aon 🐎were down 5.9% at about $295 per share Wednesday afternoon, putting them 1.8% lower year-to-date.

-Kevin George

FedEx Plunges After Its Latest Ea꧂rnings R♋eport—Here’s Why

FedEx (FDX) was the worst-performing stock in the S&P 500 on Wednesday, with 澳洲幸运5开奖号码历史查询:shares plunging over 10% after the delivery firm posted worse-than-expected results and cut its guidance on weaker demand.

FedEx reported second-quarter fiscal 2024 澳洲幸运5开奖号码历史查询:earnings per share (EPS) of $3.99, with revenue falling 3% from a year ago to $22.17 billion. Both missed estimates.

The company noted that the revenue drop was the result of “volume declines, lower fuel surcharges, re𒁏duced demand surcharges, and a mix shift toward lower-ꩵyielding services.”

FedEx warned lower demand would continue to weigh on revenue. T♔he company now antiﷺcipates full-year sales to fall by a low-single-digit percentage, down from its previous forecast that revenue would remain unchanged. It was the second consecutive quarter the company reduced its outlook.

-Bill McColl

Midday Movers

Alphabet (GOOGL): Shares of the tech giant rose about 3% following reports it plans to restructure its ad sales business as clients increasingly rely on artificial intelligence to generateജ and place ads.&nbꦰsp;

ConocoPhillips (COP): The oil company gained about 2% as oil prices inched📖 up ꦐamid disruptions in the Red Sea. More than 10% of global trade passes through the Red Sea on its way to or from the Suez Canal. 

FedEx (FDX): Shares fell more than 11% after the delivery company’s quarterly earn💟ings fell shoꦅrt of Wall Street estimates. It also lowered its full-year sales outlook for the second consecutive quarter, citing lower demand. 

Aon Plc (AON): Shares of the i💙nsurance broker fell more than 5% after it said it would buy middle-market insurance broker NFP for $13.4 billion. 

Google Jumps to Fresh 52-Week High Following Report of Ad Business Restruct🌳uring

Shares of Google-parent Alphabet (GOOGL) gained more than🥀 3% to trade at a one-year high Wednesday following reports of an impending sha♏ke-up in its core advertising business.

The Information on Tuesday reported that Sean Downey, who leads Google’s ad business in North and South America, said in a department-wide meeting that the company's 30,000-person ad sales unit would be reorganized, according to people familiar with the matter. He did not specify whether the reorganization would involve layoffs. 

The consolidation comes as Alphabet leans on artificial intelligence to generate and place ads on Google, YouTube, and its other platforms. Alphabet generated 澳洲幸运5开奖号码历史查询:$54.5 billion in revenue—or 80% of total revenue—from ad s𝓀ales in the third qua🐎rter.

Generative artificial intelligence can be substantially cheaper than conventional methods for both ad creators and sellers. WPP, the world’s largest advertising firm, struck a deal with Nvidia in May to create an AI-enabled content development engine. “The savings can be 10 to 20 times,” Mark Read, WPP’s chief executive, told Reuters.

Three Big Analyst Calls Today

Discover Financial (DFS) shares rose more than 1% after Citigroup upgraded the ꦬstock to buy from hold. Analysts cited several catalysts that could boost shares next year, including the reinstatement of share repurchases, the sale ofಌ its student loan portfolio, and the likelihood of credit losses peaking next year.

Lowe’s (LOW) shares were downgraded to hold from buy by analysts at Stifel, citing continued softness in the home improvement business. Lowe’s 澳洲幸运5开奖号码历史查询:warned of tough times ahead in its quarterly earnings report last month when it missed sales estimates and cut its full-year ea𒁃rnings and sales outlook amid a pullback in consumer spending on big-ticket items. Lowe’s stock fell more tꦦhan 1% early Wednesday. 

Costco (COST) was downgraded to neutral from buy by analysts at Northeast Research despite the company’s 澳洲幸运5开奖号码历史查询:better-than-expecte🉐d earnings report last 🧔week. Costco shares closed at a record above $681 on Monday, but were down about 1.5% at $667 Wednesday morning. 

A Stock Chart to Watch Today: FedEx

Shares in package delivery giant FedEx (FDX) fell nearly 10% at the market open Wednesday after the c🧜ompany trimmed its sales outlook amid weaker custom🌠er demand.

In its fiscal second-quarter earnings report released after the closing bell Tuesday, the company said it expects a low single-digit decline in revenue for the full fiscal year, a bigger drop than analysts expected and down from its prior forecast of sales remaining flat on a year-over-year basis. The company said softening macroeconomic conditions will continue to weigh on delivery demand in upcoming quarters but noted that 澳洲幸运5开奖号码历史查询:operating income will improve due to recent cost-cutting initiatives.

Since bottoming out in the third quarter of 2022, FedEx shares have trended steadily higher apart from a significant 澳洲幸运5开奖号码历史查询:retracement to the 200-day moving average in October. Today, keep an eye on a key 澳洲幸运5开奖号码历史查询:horizontal line around $270 and an uptrend line that currently sits near the $250 level as potential areas on the chart that may provide support.

See here for more charts to watch today.

-Tim Smith

Stocks Making the Biggest Moves Premarket

Gains:

• Paramount Global (PARA): Shares of the entertainment company rose more than 1% after Wells Fargo upgraded the stock to equal weight from underweight, citing the increased probability of a merger or acquisition as 澳洲幸运5开奖号码历史查询:rumors swirl about a potential sale. 
• Coinbase Global (COIN): Shares of the cryptocurrency exchange rose more than 1% as Bitcoin and other cryptocurrencies gained amid hopes for a 澳洲幸运5开奖号码历史查询:spot Bitcoin ETF in the coming months. 
  

Losses:

• Argenx SE (ARGX): Shares of the Dutch pharmaceutical company fell nearly 25% after it said an experimental antibody therapy failed to meet primary and secondary goals in a late-stage clinical trial for the treatment of two skin blistering diseases.
• FedEx Corp. (FDX): Shares of the delivery and logistics company fell 11% after it reported lower-than-expected fiscal second-quarter earnings and lowered its full-year revenue outlook. 
• General Mills Inc. (GIS): The packaged-food maker’s shares fell about 4% after its quarterly sales fell short of Wall Street estimates. The company said it was dealing with “slower-than-expected volume recovery” and cut its full-year sales and earnings guidance. 

Futures Retreat as Rally Takes a Breather

Futures contracts connected to the Dow♈ Jones Industrial Average were💎 down about 0.2% in premarket trading on Wednesday.

S&P 500 futures were also 0.2% lower.

Nasdaq 100 contracts slipped nearly 0.3%.