Biggest S&P 500 Movers on Wednesday

2 hr 41 min ago

Advancers

• Warner Bros. Discovery (WBD) shares gained 5.4%, locking in the top daily performance in the S&P 500. Wolfe Research upgraded the media giant’s stock earlier this week to “peer perform” from “underperform.” Although analysts recognized that WBD faces ongoing challenges from declining linear TV revenues, they highlighted several bright spots. Analysts said there is potential for international growth for the Max streaming service, increasing profitability of the direct-to-consumer (DTC) segment, and potential opportunities from industry trends in re-bundling and partnerships.
• Shares of Albemarle (ALB), the world’s largest lithium miner, added 5.2%. Wednesday’s increase extended gains posted by Albemarle stock earlier this week after Australia-based Liontown Resources (LINRF) became the latest lithium producer to scale back production plans as prices for the metal remain under pressure. Albemarle’s earnings report, released last week, showed a wider-than-expected quarterly loss but provided details on cost-saving measures, including staff cuts.
• Cable TV and internet provider Charter Communications (CHTR) announced an agreement to acquire media mogul John Malone’s Liberty Broadband (LBRDA) in an all-stock transaction. Liberty’s assets include its subsidiary GCI, Alaska’s largest communications provider, and a roughly 32% stake in Charter. The boards of directors at Charter and Liberty approved the deal. Charter shares closed the day 3.6% higher.

Decliners

• Following a sharp downturn on Monday, shares of power management chipmaker Monolithic Power Systems (MPWR) posted the steepest daily decline of any S&P 500 stock for the second time this week, slumping 6.6% Wednesday. The losses followed a report that semiconductor powerhouse Nvidia (NVDA) may omit or cut back on Monolithic’s components in its next-generation AI chips.
• Shares of Super Micro Computer (SMCI) fell 6.3%, exacerbating a string of losses that have been pummeling the stock since the server and data storage maker said it would push back the release of its fiscal first-quarter earnings report. Supermicro has not announced when it will be able to disclose the results, and the stock faces a possible delisting from the Nasdaq should the delays continue.

• ResMed (RMD) shares sank 4.8% as regulatory filings revealed that a pair of top executives and a member of the board of directors had sold shares in the medical device maker. Investors often interpret selling by insiders as a lack of confidence in a company’s upcoming performance.

–Michael Bromberg

Super Micro’s Bad Year Keeps Getting Worse

3 hr 50 min ago

Shares of Super Micro Computer (SMCI) extended their 2024 swoon on Wednesday, with the stock dropping after the company said it would not submit its fiscal first-quarter results in a timely manner.

The IT infrastructure company released preliminary September-quarter results earlier this month but now says it needs additional time to hire a new auditor and have it review the company’s results.

Accounting firm EY resigned as Supermicro’s auditor on Oct. 30 following months of speculation about the company’s accounting practices. Supermicro said a special committee formed by its board of directors found no evidence of fraud or misconduct. 

Shares of Supermicro fell 6.3% to close Wednesday at $20.33, their lowest closing level of the year. The stock has fallen from highs around $120 in March.

The first-quarter filing delay comes after Supermicro said last month that it could not predict when it would file its annual report for 2024, a necessity for it to comply with Nasdaq rules. If the delays continue, Supermicro could be delisted from the exchange altogether. 

Supermicro previously disclosed that it received a warning letter from the Nasdaq saying it had until Nov. 16, to file or submit a plan.

–Andrew Kessel

Tesla Stock Price Levels to Watch

4 hr 37 min ago

Tesla (TSLA) shares have surged since Donald Trump’s election last week, amid investor hopes that CEO Elon Musk’s close ties with the president-elect will benefit the company.

Trump on Tuesday tapped Musk to co-lead a newly created Department of Government Efficiency (DOGE), an agency tasked with reducing government expenditure and slashing regulations, two areas that may have a direct impact on the EV maker.

Tesla shares, which have gained more than 30% since the start of trading on election day, were up 1% at around $331 in afternoon trading Wednesday, after rising as high as $344 earlier in the day.

The stock broke out above the top trendline of a cup and handle pattern last week on the highest trading volume since early July, indicating the potential for follow-through buying.

Investors should watch key support levels on Tesla’s chart around $300 and $265, while monitoring a crucial overhead area near $400.

Read the full technical analysis piece here.

–Timothy Smith

FanDuel Parent Flutter Hits Record High on Strong NFL Betting

6 hr 1 min ago

Shares of Flutter Entertainment (FLUT) traded at an all-time high Wednesday as the parent of sports gambling site FanDuel beat revenue estimates and boosted its guidance, as it benefited from demand for wagering on National Football League games.

Flutter reported third-quarter revenue was up 27% year-over-year to $3.25 billion, ahead of the consensus estimate of $3.10 billion by analysts polled by Visible Alpha. Adjusted earnings per share (EPS) of $0.43 came in below expectations of $0.52.

The company noted that results were powered by a “strong start to the NFL season driven by new product launches and favorable Q3 sports results combined with continued iGaming strength.” CEO Peter Jackson noted that peak bets per minute on NFL games were “already higher than Super Bowl LVII” last February.

Revenue from all other countries where Flutter does business rose as well. 

The company raised its overall full-year outlook for both revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 1%, reflecting gains outside the U.S. It explained that in the U.S., it was lowering its revenue mid-point revenue by 1% and adjusted EBITDA by 4% “as positive Q3 performance has subsequently been more than offset by unfavorable sports results in Q4 to date.”

Flutter shares were up nearly 6% in recent trading. The stock has gained 46% since the start of the year.

–Bill McColl

Rocket Stock Sinks as High Mortgage Rates Hurt Results

7 hr 17 min ago

Rocket Companies (RKT) shares tumbled 10% Wednesday, a day after the online financial platform badly missed revenue estimates and gave soft guidance as the housing market continued to be squeezed by high borrowing costs.

The mortgage provider’s revenue plunged 46% year-over-year to $647 million, about half of what analysts surveyed by Visible Alpha had expected. Adjusted earnings per share (EPS) of $0.08 was in line with forecasts.

“Over the past few months, the market has thrown our industry almost every curveball imaginable,” CEO Varun Krishna said in the company’s earnings call, according to a transcript provided by AlphaSense. “With inflation easing, the Fed cut rates for the first time in four years. But in an interesting twist, while the Fed lowered rates, mortgage rates did not follow suit.”

Krishna called the housing market “challenging.”

CFO Brian Brown added, “We anticipate the mortgage market in the fourth quarter to be smaller than the third quarter.” The company sees current-quarter revenue in a range of $1.05 billion to $1.20 billion. The Visible Alpha estimate was $1.18 billion.

The news sent shares of Rocket Companies into negative territory for the year.

–Bill McColl

Bitcoin Rally Continues as Price Jumps Above $93K

8 hours ago

The post-election bitcoin price run has shown no signs of slowing down, as the world’s largest crypto asset recently traded above $93,000 for the first time in its history.

Bitcoin, which was trading below $70,000 on election night, has more than doubled in price in 2024 following the launch of spot bitcoin exchange-traded funds (ETFs) in January.

Activity around the ETFs has picked up since Trump was announced as the winner of the 2024 U.S. presidential election. Trump during his campaign made a variety of promises regarding crypto, including the establishment of a “strategic bitcoin stockpile” and the fostering of growth in the U.S. bitcoin mining industry.

The two largest days of flows into the bitcoin ETFs on record have happened since election day last Tuesday, according to Farside Investors.These ETFs saw inflows of nearly $2 billion this Monday and Tuesday alone.

BlackRock’s iShares Bitcoin Trust (IBIT) has now crossed the $40 billion inflows threshold in the fastest time for any ETF on record (211 days) and is now larger than any other ETF launched in the past 10 years, according to Bloomberg Senior ETF Analyst Eric Balchunas. IBIT surpassed the size of BlackRock’s iShares Gold Trust (IAU) just last week.

Activity is also finally starting to pick up for the more recently approved spot ether ETFs, which saw about $431 in inflows on the first two days of this week, according to Farside Investors.

–Kyle Torpey

Rivian Soars on Upsized Volkswagen JV

8 hr 41 min ago

Rivian Automotive (RIVN) shares soared Wednesday after the electric vehicle manufacturer expanded its partnership with Volkswagen in a move aimed at helping both firms find ways to grab more of the market for EVs.

The carmakers announced a new joint venture that would see Volkswagen inject as much as $5.8 billion into the struggling EV firm. The plan increases the initial $5 billion deal value reported in June.

Rivian noted the agreement would tap into the strength of the partnership “to create cutting-edge software and electronics architectures and scale the electric vehicle platforms and architectures.”

The JV is seen “enabling the launch of Rivian’s R2 in the first half of 2026 and support the expected launch of the first models from the Volkswagen Group as early as 2027.”

Rivian shares were up 20% in recent trading. Despite the surge this morning, the stock is down 46% since the start of 2024.

–Bill McColl

Cava Rises to All-Time High on Strong Earnings, Outlook

9 hr 56 min ago

Shares of Cava Group (CAVA) jumped in early trading Wednesday, a day after the fast-casual chain reported third-quarter results above expectation and lifted its fiscal 2024 same-store sales growth outlook.

Cava reported net income of $18 million on revenue of $241.5 million, both significantly higher than a year ago and above consensus estimates of analysts compiled by Visible Alpha. Cava’s same-store sales rose by 18% year-over-year, consisting of a 13% rise in traffic and 5% increase from menu prices and product mix.

The chain raised some of its full-year projections, as it expects to open more stores than previously guided and sees same-store sales growing by 12% to 13%, up from 8.5% to 9.5% last quarter, which itself had been raised from the prior 4.5% to 6.5% range.

Cava shares have risen repeatedly following strong earnings since its initial public offering (IPO) last year. The stock was up 9% at around $158 in recent trading, after surging to a record high of $172.43 early in the session.

However, JPMorgan analysts reiterated their “neutral” rating Wednesday, saying they believe “many years of growth” is already priced into the stock, although they raised their price target to $110 from $90.

–Aaron McDade

Spotify Surges After Earnings—Key Levels to Watch

11 hr 24 min ago

Spotify (SPOT) shares jumped in premarket trading Wednesday after the streaming media giant topped Wall Street’s third-quarter subscriber growth estimates and issued a better-than-expected profit outlook.

The stock has continued to track higher after retesting the top trendline of an ascending triangle, though a relative strength index reading over 70 signals overbought conditions.

A bars pattern, which extracts the stock’s upward trend from January to April and repositions it from the ascending triangle’s top trendline, forecasts a bullish price target in Spotify shares of around $525.

Investors should monitor important support areas on the streaming giant’s chart around $389, $350, and $320.

The stock was up 9% at $457 in recent premarket trading.

Read the full technical analysis piece here.

–Timothy Smith

Major Stock Index Futures Lower Ahead of Inflation Data

12 hr 13 min ago

Futures tied to the Dow Jones Industrial Average were down 0.3%.

S&P 500 futures were down 0.2%.

Nasdaq 100 futures were off 0.3%.