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Takeaways
- The S&P 500 gained 0.6% on Monday, March 31, boosted by an afternoon rally even as investors brace for the onset of reciprocal tariffs later this week.
- Discover Financial shares jumped as the credit card issuer's interim CEO extended his tenure and a report showed reduced regulatory resistance to the pending merger with Capital One.
- Shares of Moderna and other vaccine makers dropped after the FDA's vaccine chief announced his resignation.
The major U.S. stock indexes started the new trading session mixed, as U.S. policy on trade remained a focus.
After trading in the red for much of Monday's session, the S&P 500 rallied in the afternoon to close 0.6% higher. The Dow closed with a daily gain 1.0% while the Nasdaq fell 0.1%.
Discover Financial Services (DFS) shares surged 7.5%, gaining the most of any S&P 500 stock on Monday, following indications that interim CEO J. Michael Shepherd will stay at the helm of the credit card issuer until Capital One Financial (COF) completes its acquisition of the company. The Capitol Forum reported on Friday that the Department of Justice is less likely to challenge the merger due to concerns about the impact of the merger on consumers who have no credit history. Capital One shares rose 3.3%.
Shares of Ticketmaster’s parent company Live Nation Entertainment (LYV), which is owned by Live Nation, rose 4.4%. Jericho Capital Asset Management included the stock of the live event company among its top picks recently, noting that its strong performance in the year 2024 will be driven by an increase in concert events and attendees over the previous year. Live Nation has agreed to pay $20 million to settle a lawsuit brought by investors who claimed the company had failed to disclose certain risks related to its business practices which raised antitrust issues.
The shares of American International Group (AIG), the insurer, jumped by 4.0% after its board of directors approved a plan to buy up to $7.5 billion worth of the company’s common stocks. The announcement of the buyout coincided with AIG’s Investor Day event, where the company also announced upbeat growth goals.
Moderna (MRNA) shares tumbled 8.9%, logging the S&P 500’s weakest daily performance. Peter Marks announced his resignation as the top vaccine official of the Food and Drug Administration. Marks who worked on the development of vaccines against COVID-19 intends to resign by the end this week. He blames disagreements with Health and Human Services Sec. Robert F. Kennedy Jr.
Lululemon Athletica’s (LULU) shares fell 3.4% on Monday, extending losses that were posted late last week following the release of the company’s quarterly earnings. The manufacturer of yoga apparel provided a disappointing outlook despite exceeding estimates in sales and profit. It noted that store traffic was down amid cautious consumer spending patterns. Lululemon CEO said that the athletic wear company was making strides to address persistent “newness” problems, which occur when product mix fails to attract consumers.
Charles River Laboratories (CRL) shares dropped 3.2%. The shares of the pharmaceutical firm have been trending down since March 21, after Goldman Sachs reduced its price target, and downgraded the stock from “buy”. Analysts expressed concerns over Charles River’s Contract Development and Manufacturing Organization business (CDMO), as well as the stock’s value in relation to demand trends.
