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Takeaways
- The S&P 500 edged up 0.6% on Monday, March 17, after a report showed that retail sales recovered in February but still fell short of expectations.
- Shares of Intel extended gains after a filing revealed that the chipmaker's incoming CEO plans to purchase significant shares in the company.
- Incyte shares dropped after the company published disappointing results of a clinical study of an experimental skin-treatment.
Major U.S. equity indexes rose Monday, despite a report that showed a slower-than-expected rise in retail sales for February. This report heightened concerns about the economy’s future.
Monday’s rise marked the beginning of a new trading session that will include the Federal Reserve policy meeting. Central bankers will likely maintain their benchmark rates at current levels, as they wait for more clarity about the economic impact of changing U.S. Trade policies.
The S&P 500 advanced 0.6% on Monday. The Dow industrials rose 0.9% while the tech-heavy Nasdaq closed 0.3% higher.
Shares of solar equipment manufacturer Enphase Energy (ENPH) notched the top daily performance in the S&P 500, surging 9.8%. The stock recovered from a series of losses in the past week in line with the market slump. Enphase shipped the newest electric car (EV) chargers on European markets last week.
Intel (INTC), shares rose 6.8%, continuing gains made late last week when the chipmaker announced former board member Lip Bu Tan as its top executive. A regulatory filing showed that the incoming CEO will purchase $25 million of Intel shares in the first 30 days after taking over the company.
AES Corp.’s (AES), an electricity generator, saw its shares jump 6.1%. AES, like other utilities has attracted attention from investors because of its potential to provide power to energy-intensive data centres. According to reports big tech companies account for more that 40% of the backlog. AES announced last week the pricing of its $800 million offering of senior notes due 2032. The company plans to repurchase the notes due in 2025 with the proceeds from this offering.
Incyte (INCY) shares dropped 8.6%, losing the most of any S&P 500 stock after the pharmaceutical company released results from a Phase 3 clinical trial for an experimental skin care treatment. Incyte’s Povorcitinib met its goal to reduce symptoms for hidradenitis Supurativa (HS), but at a slower rate than in previous trials.
The shares of Discover Financial (DFS), a credit card issuer, fell 6.9% in response to reports that U.S. Department of Justice officials are concerned about the planned merger of Capital One Financial (COF) and Discover Financial. DOJ officials reportedly think the merger will limit competition on the subprime market. The reports last month that states could sue to block the deal prompted a potential regulatory response. Capital One shares fell 3.8%.
Tesla (TSLA), shares fell 4.8% after Mizuho analysts lowered their price target and their forecast for the automaker’s vehicle delivery. Mizuho attributed the softer outlook to a weaker demand, headwinds from China, and brand perception issues.
