Joey Solitro
Stocks were choppy Friday as market participants took a breather following Thursday's Fed-fueled rally. While buzz continued to swirl around the Federal Reserve's jumbo-sized rate cut from earlier this week, today's headlines centered mostly on single-stock news, including Nike's (NKE) big C-suite shake-up.
Indeed, Nike was the best Dow Jones stock today, jumping 6.9% after the athletic footwear and apparel retailer announced that Elliott Hill, a 32-year veteran of the company, will replace John Donahoe as CEO, effective October 14.
"We see this move as a positive step that could reinvigorate the brand and improve sentiment on the stock, as Mr. Hill is highly respected and has deep knowledge of the business from his 32-year tenure at Nike," says Truist Securities analyst Joseph Civello (Hold).
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Constellation Energy tops the S&P 500 on Microsoft partnership
Elsewhere, Constellation Energy (CEG) surged 22.3% – making it the best S&P 500 stock – after the clean-energy utility company inked a deal with Microsoft (MSFT, -0.8%). According to a regulatory filing, the two firms signed a 20-year agreement to reopen a unit of Pennsylvania's Three Mile Island that will power Microsoft's data centers. The power plant will be renamed the Crane Clean Energy Center.
"The new reactor is not expected to be fully online until 2028, meaning there is time for regulatory challenge, but we think the environment is supportive for CEG to successfully bolster what is already the nation's largest nuclear fleet," says CFRA Research analyst Daniel Rich (Buy).
Constellation happens to be one of the best stocks to buy for a Fed rate cut, while Microsoft is one of analysts' favorite blue chip stocks.
FedEx spirals after earnings
FedEx (FDX) plunged 15.2% after the logistics giant missed top- and bottom-line expectations for its fiscal first quarter and revised its full-year outlook.
The company now anticipates low single-digit revenue growth and earnings per share in the range of $20 to $21 vs previous estimates for low to mid-single-digit revenue growth and earnings of $20 to $22 per share.
The results were "negatively affected by a mix shift, which reduced demand for priority services, increased demand for deferred services, and constrained yield growth," the company said in the release. Higher operating expenses also created pressure.
Lennar drops on gross margin concerns
Lennar (LEN) was another post-earnings decliner, falling 5.2% even as the homebuilder reported better-than-expected earnings and revenue for its fiscal third quarter. The weakness appears to be in reaction to the company's gross margin outlook for the fourth quarter, which came in below expectations.
Still, UBS Global Research analyst John Lovallo maintained a Buy rating on the consumer discretionary stock after earnings. "We believe the setup for LEN and the homebuilders remains decidedly favorable, particularly as interest rates trend lower," Lovallo says.
"Management characterized current home buying activity as strong, with the expectation for even greater and more broad-based strength as rates move lower, which is consistent with our view," he adds.
As for the main indexes, the Dow Jones Industrial Average rose 0.09% to 42,063, a new record closing high. The S&P 500 gave back 0.2% to 5,702 and the Nasdaq Composite shed 0.4% to 17,948.
Related content
- Amazon's Big Deal Days Event Is Coming! We’ve Got All the Details
- Walmart Deals Days Kicks Off with Bargains Up to 50% Off
- Should We Worry About the Slowing U.S. Economy
-
Don’t Miss Apple and Walmart Back-to-School Tax-Free Holiday Savings this SummerSales Tax Select states host sales tax holidays during the summer. Here’s what you can purchase.
-
The Rule of Retirement InversionThe rule of retirement inversion says that to have a great retirement, you must ask yourself what would ruin a great retirement — and then plan to avoid it.
-
How Divorced Retirees Can Maximize Their Social Security Benefits: A Case StudySusan discovered several years after she filed for Social Security that she is eligible to receive benefits based on her ex-spouse's earnings record. This case study explains how her new benefits are calculated and what her steps are to claim some of the money she missed.
-
From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every AgeFrom toddlers to young adults, all kids can benefit from open conversations with their parents about spending and saving. Here's what to talk about — and when.
-
I'm an Investment Pro: Here's How Alternatives Could Inject Stability and Growth Into Your PortfolioAlternative investments can often avoid the impact of volatility, counterbalancing the ups and downs of stocks and bonds during times of market stress.
-
Dow Bleeds Red Due to Big Blue: Stock Market TodaySix of the official GICS sectors were in the green, led by communications services, technology and energy stocks.
-
July Fed Meeting: Live Updates and CommentaryThe July Fed meeting could be a lively economic event, with Wall Street keyed into what Fed Chair Powell has to say about interest rates and President Trump.
-
A Contrarian Approach Pays Off for This Small-Cap FundSmall-cap stocks have been hit hard by tariff worries, but this T. Rowe Price fund has outperformed thanks to its manager's against-the-tide approach.
-
A Financial Planner's Guide to Unlocking the Power of a 529 Plan529 plans are still the gold standard for saving for college, especially for affluent families, though they are most effective when combined with other financial tools for a comprehensive strategy.
-
An Investment Strategist Takes a Practical Look at Alternative InvestmentsAlternatives can play an important role in a portfolio by offering different exposures and goals, but investors should carefully consider their complexity, costs, taxes and liquidity. Here's an alts primer.
