Stocks rise with technology ready to roar


Stocks rose on Friday, putting the S&P 500 on track for a new record high as a technology-led rally lifted a market weighed down by uncertainty over the prospect of an early interest rate cut.

The Nasdaq Composite ( ^IXIC ) jumped 0.7%, looking to return to Thursday’s gains as Apple ( AAPL ) and chipmakers outperformed. The S&P 500 (^GSPC) rose 0.5%, while the Dow Jones Industrial Average (^DJI) rose 0.5%, or about 170 points.

The focus has shifted to big tech companies to kick-start the stock market lag now that the main drivers of the late 2023 rally have waned. Thursday’s tech-led stock rally put the S&P 500 within 0.3% of its all-time closing high of 4,796.56 and snapped a losing streak that had continued Three days for the Dow Jones.

But stocks had a busy holiday week as investors reacted to policymakers’ comments, economic data and corporate earnings in an attempt to gauge the likelihood of a Fed shift. The market is still closely monitoring signals regarding the timing of interest rate cuts, which could determine the course of companies this year.

Read more: What a pause on federal interest rate hikes means for bank accounts, CDs, loans and credit cards

In individual stocks, iRobot (IRBT) shares fell 29% after a report that EU regulators plan to block Amazon’s (AMZN) $1.4 billion acquisition of the Roomba maker. Meanwhile, Macy’s (M) stock fell more than 3% after the retailer said it would cut 2,350 jobs and close five stores.

Quarterly results from Travelers (TRV), Regions Financial (RF), and Banks are on the earnings schedule on Friday. In economic updates, the December reading for existing home sales is due, as well as a look at consumer sentiment from the University of Michigan.

Elsewhere, the postponement of the US government funding saga came after lawmakers passed a temporary bill to avert an imminent shutdown.

He lives7 updates

  • Spirit rebounded 22% after guidance was lifted and debt refinancing was assessed

    Spirit shares rebounded 22% on Friday after the Miramar, Fla., company said it was “evaluating options to refinance its 2025 debt maturities” and raised its operating margin guidance by 450 basis points for the fourth quarter.

    Spirit shares witnessed their best daily performance since 2020, in a reversal of the sharp slide over the past three sessions.

    A federal judge’s ruling this week blocking JetBlue (JBLU) from acquiring Spirit Airlines (SAVE) has raised questions about what’s next for carriers — especially Spirit, whose clock is ticking with $1.1 billion in debt due in September 2025.

    The airline said Friday that it had $1.3 billion in liquidity as of Dec. 31, and that the merger agreement with JetBlue “remains in full force and effect.” The statement essentially left the door open if Tuesday’s ruling was appealed.

    On Thursday, Spirit stock fell as much as 20% after a Wall Street Journal article sparked speculation about a restructuring of the company.

    The report sparked the following statement from an airline spokesperson: “Spirit is neither seeking nor engaging in legal restructuring.”

    Shares of the low-cost carrier have fallen more than 50% since Tuesday’s court ruling.

  • Stocks are rising in afternoon trading, and the S&P is on track to hit a record high

    Wall Street maintained its momentum Friday afternoon and was on the verge of pushing the S&P 500 to a new record high.

    The Nasdaq Composite (^IXIC) rose 0.9%. The S&P 500 (^GSPC) rose 0.7%, while the Dow Jones Industrial Average (^DJI) rose 0.5%, or about 200 points.

  • Stocks are trending in morning trading

    Here are some of Yahoo Finance’s leading stocks Trend indicators Page during morning trading on Friday:

    iRobot (Erbt): After a report that the European Union will seek to block Amazon’s deal to buy the company for $1.7 billion, shares fell on Friday morning. EU officials previously raised concerns about the proposed acquisition late last year, according to the Wall Street Journal, arguing that the purchase would restrict competition in the robotic vacuum cleaner market. Shares fell nearly 30%.

    Spirit Airlines (Memorizes): Shares jumped more than 20% after the carrier raised its guidance for the fourth quarter, rebounding somewhat after the big hit the stock took after a US federal judge blocked JetBlue Airways’ (JBLU) takeover of the budget airline.

    super micro computer (SMCI): Shares rose nearly 30% on Friday morning after the company raised guidance for its fiscal second quarter of 2024. The company now expects to report revenue of more than $3.6 billion, well above the previous forecast of $2.9 billion. Adjusted earnings are now expected to be $5.40 to $5.55 per share compared to previous guidance of $4.40 to $4.88 per share.

    Wayfair (W): After announcing significant layoffs of up to 1,600 jobs, or 13% of its workforce, Wayfair shares rose 8%. The company is among a group of others that laid off thousands of employees at the start of the year, including Macy’s (M), Citigroup (C), and Google (GOOG, GOOGL).

  • iRobot stock falls 30% after report that the European Union will block the acquisition of Amazon

    iRobot (IRBT) shares fell on Friday morning following a report that the European Union will seek to block Amazon’s deal to buy the company for $1.7 billion.

    Competition officials from the European Union’s executive body met on Thursday with representatives of Amazon to discuss the deal, according to the Wall Street Journal. Officials told Amazon that the deal would likely be rejected.

    EU officials previously raised concerns about the proposed takeover late last year, arguing that the purchase would restrict competition in the robotic vacuum cleaner market, the report said. As Amazon would become both a seller and marketplace for such products, the company may be incentivized to disrupt or prevent competitors in its marketplace from selling their products through the platform.

    The step to finalize the deal is not fixed. It will still require the approval of senior political leaders in the European Commission. The deadline for a final decision is mid-February.

    The regulatory challenges Amazon faces in the European Union raise further concerns about how the deal will play out with antitrust officials in the United States.

    During the Biden presidency, regulators have rolled back some big-name acquisitions. Last year, the Federal Trade Commission filed a lawsuit against Amazon alleging that the tech giant maintains an illegal monopoly.

  • Consumers haven’t felt this good about the economy since July 2021

    Americans increasingly feel better about the state of the US economy.

    The latest University of Michigan Consumer Sentiment Survey released Friday revealed a 13% jump in overall sentiment during January. The index reading for this month came in at 78.8, its highest mark since July 2021, and much higher than economists’ expectations for a reading of 70.1.

    The cumulative 29% rise in the sentiment index over the past two months is the largest two-month increase since the U.S. economy recovered from the 1991 recession.

    “The sharp increase in December was no coincidence,” consumer survey director Joan Hsu said in a press release. “Consumer views were supported by confidence that inflation has turned a corner and boosting income expectations.”

  • Stocks rise as S&P 500 aims for record high

    Wall Street began trading Friday with gains across the board, sending the S&P 500 index to a new record high as investors appeared to shake off pessimism tied to potential interest rate cuts from the Federal Reserve.

    The Nasdaq Composite ( ^IXIC ) jumped 0.5%, looking to return to Thursday’s gains as Apple ( AAPL ) and chipmakers outperformed. The S&P 500 (^GSPC) rose 0.3%, while the Dow Jones Industrial Average (^DJI) rose 0.3%, or about 120 points.

  • Ford cuts F-150 Lightning production as demand for electric trucks rises

    Ford (France) said early Friday that it will pull 1,400 workers from the production line of the F-150 Lightning, the electric version of its best-selling truck, in response to customer demand.

    This means that people are not as eager to buy an electric version of the F-150 as the company planned.

    Half of those workers will be transferred to the plant that makes the new Ford Bronco and Ranger trucks, while the other half will be offered buyouts or find a spot in another role at the Dearborn plant where the F-150 Lightning is made.

    The move is reminiscent of a story from Yahoo Finance’s Pras Subramanian in late 2023 that noted last year we’d seen the industry’s electric vehicle dreams come to fruition.

    This means that the lofty predictions made by automakers in recent years that the entire country will start looking like California when it comes to uptake of electric vehicles are starting to look very dreamy.

    Investors were certainly skeptical — shares of Ford and General Motors (GM) had fallen over the past year, lagging the S&P 500 significantly over that period.

    With rising interest rates making auto financing more difficult for many consumers, concerns about the economic slowdown still impacting consumers, and inventory levels still low, the euphoric sentiment that swept the auto industry in 2021 appears far away as 2024 begins.

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