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
-
Bullish IPO: Should You Buy BLSH Stock?Wall Street is buzzing about the Bullish IPO, with the Peter Thiel-backed crypto company set to start trading today, August 13.
-
How the 2025 Child Tax Credit Rules Impact Single ParentsTax Credits New changes to family tax credits, like the Child Tax Credit, will impact the eligibility of some households.
-
Bullish IPO: Should You Buy BLSH Stock?
Wall Street is buzzing about the Bullish IPO, with the Peter Thiel-backed crypto company set to start trading today, August 13.
-
How to Build Your Financial Legacy Three Piggy Banks at a TimeA wealth adviser shares a childhood saving technique that taught him lessons of stewardship, generosity and responsibility and helped him answer the question we all need to answer to define our lives by impact rather than greed: 'What is this all for?'
-
Which of These Four Withdrawal Strategies Is Right for You?Your retirement savings may need to last 30 years or more, so don't pick a withdrawal strategy without considering all the options. Here are four to explore.
-
July CPI Report Ignites a Risk-On Rally: Stock Market TodayMarket participants price out worst-case scenarios for tariffs and inflation and will now turn their attention to employment and growth.
-
July CPI Report Boosts Rate-Cut Odds: What the Experts SayThe July CPI report shows that tariffs are having a slight impact on inflation, though not enough to keep the Fed from cutting interest rates.
-
DST Exit Strategies: An Expert Guide to What Happens When the Trust SellsUnderstanding the endgame: How Delaware statutory trust dispositions work, what investors can expect and why the exit is probably more important than the entrance.
-
Think Selling Your Home 'As Is' Means You'll Have No Worries? Think AgainThere are significant risks and legal obligations involved in selling a home 'as is' and by yourself, without a real estate agent.
-
Stocks Slip Ahead of July CPI Report: Stock Market TodayThe latest inflation updates roll in this week and Wall Street is watching to see how much of an impact tariffs are having on cost pressures.
