📊 S&P 500 Record High (x20)

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Ticker Tea
March 22, 2024

TGIF 😎

Yesterday U.S. stocks achieved new records (again), with significant contributions from chipmakers driving the gains. The S&P 500 reached a new all-time high for the third consecutive day (and 20th time in 2024!). The Dow Jones Industrial Average increased by 0.7%, and the Nasdaq composite grew by 0.2%, both setting new records.

Chipmaker Micron led the sector's rise with a 14.1% surge after reporting quarterly results (summary) that far exceeded expectations and providing an optimistic profit forecast for the current quarter, driven by a surge in demand for AI. Broadcom, another chipmaker, also saw a significant rise of 5.6%, after an investor presentation highlighted its AI opportunities (link to deck).

Reddit experienced a notable jump of 48.4% in its stock market debut, with its shares initially priced at $34.

However, not all news was positive, as Apple faced a 4.1% drop after the Justice Department filed a major antitrust lawsuit against it, accusing the tech giant of maintaining an illegal monopoly. Accenture and Darden Restaurants also saw declines due to disappointing profit forecasts, falling by 9.3% and 6.5%, respectively.

⬆️ Gainers: Reddit (+48%), Guess (+20%), Micron (+14%), Floor & Decor Holdings (+9%), Restoration Hardware (+7%), Williams Sonoma (+6%) (list of top gainers)

⬇️ Losers: Five Below (-15%), Chewy (-10%), Academy (-9%), Paramount (-5%) (list of top losers)

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» Reddit’s ($RDDT) IPO saw a dramatic 48% rise, closing at $50.44, propelled by investor enthusiasm for its AI-focused business strategy. The company raised $748 million, marking it as a significant tech IPO in 2024's recovering market. (link)

» The S&P 500 hit its 20th record high of 2024, driven by optimism over a potential Fed-engineered soft landing, lifting stocks despite mixed results from tech giants. Economic data suggests resilience, boosting confidence in continued growth. (link)

» Short sellers target the commercial real estate sector due to systemic credit risks, with investor withdrawals and declining property values. Rising interest rates and falling US office prices further caution against these investments. (link)

» Lululemon ($LULU) projects subdued sales with U.S. traffic dipping, expecting 11%-12% growth, below last year's 19%. Plans for new products and China expansion remain, amid analyst optimism for exceeding forecasts. (link)

» Darden Restaurants ($DRI) faces a drop in lower-income diner spending and reduced 2024 sales outlook due to weather and consumer issues. Despite this, higher-income spending boosts fine-dining sales, with Darden focusing on competitive pricing amid inflation. (link)

» The DOJ's lawsuit against Apple ($AAPL) claims its iPhone ecosystem engages in monopolistic practices, potentially altering its operations and affecting its iPhone, Apple Watch, and services. The case targets Apple's control over messaging, smartwatch compatibility, and cloud services as anti-competitive actions. (link)

» February's home sales rose unexpectedly by 9.5% to 4.38 million units, the largest monthly gain in a year, despite a year-over-year decrease. The surge, led by the West and South, was driven by increased supply and demand, pushing the median price to $384,500. Yet, first-time buyer rates fell as all-cash purchases climbed. (link)

» Donald Trump's Truth Social might secure him a $3.5 billion profit from a merger with Digital World Acquisition ($DWAC) SPAC, shooting its value to $6 billion. Fueled by supporter-driven share purchases, the deal risks investor losses but promises Truth Social $300 million, keeping it afloat despite weak earnings. Post-merger, Trump must wait six months to cash in, unless granted a waiver. (link)

Major ($10bn+) earnings releases scheduled the next five business days 👇 Click here for a comprehensive list of upcoming earnings releases

Economic results from yesterday are below, along with today’s schedule 👇 Click here for full schedule & live updates of Wall Street estimates.

 

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