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Key Takeaways
- The S&P 500 slipped 0.2% on Tuesday, April 15 amid a relative lull in market-moving global trade developments.
- Netflix stock surged after a recent report stated that the streaming giant intends to double revenue by 2030.
- Numerous analysts reduced the price targets of Albemarle stocks, citing a challenging economic backdrop. Shares in the lithium producer fell.
Major U.S. equities fell slightly Tuesday, a respite to the trade-related volatility which has caused significant swings in stock prices in recent weeks.
The market indexes dipped after the two-session rally and despite the strong earnings reports of some of the country’s largest banks. The S&P 500 slipped 0.2%, while the Dow lost 0.4%. The Nasdaq closed Tuesday’s session at a loss of less that 0.1%
Palantir Technologies (PLTR) shares surged for the second straight session, adding 6.2% on Tuesday to notch the S&P 500’s top daily performance. The surge in Palantir’s stock came after reports that the North Atlantic Treaty Organization acquired a military artificial intelligence (AI), developed by the software company.
Shares of Hewlett Packard Enterprise (HPE) gained 5.1% after Bloomberg reported that activist investor Elliott Investment Management has accumulated a position worth more than $1.5 billion in the IT services provider. People familiar with the matter told Investopedia that Elliott intends to engage with HPE’s leadership on potential steps to boost the tech company’s value.
The Wall Street Journal reports that Netflix (NFLX), executives, presented a list of optimistic goals at a meeting to review the company’s business in March. The targets include doubling revenue by 2030 and reaching a $1 trillion valuation. Netflix shares have risen 4.8% ahead Thursday’s release of its quarterly earnings report.
Shares of Albemarle (ALB), the world’s largest lithium producer, dropped 5.9%, falling the most of any S&P 500 constituent. The stock’s price target was reduced by several research firms. Analysts pointed out that there are many factors behind the more muted forecasts of Albemarle. These include the potential for trade tensions in the automotive industry to weigh on sales globally, which could lead to sustained pressure on battery component prices.
Bank of America took a cautious stance on the chemical sector. They cited cyclical softness and global trade headwinds as reasons for their cautious outlook. Analysts have indicated that these factors contribute to lower levels in confidence about upcoming earnings estimates. BofA reduced Dow (DOW), the chemicals giant’s stock, from “buy” down to “underperform”. Shares of Dow fell 4.0% as a result.
The shares of Molina Healthcare (MOH), which had been rated “outperform” by Baird analysts, fell 3.8%. According to the analyst’s team, companies within the managed care and healthcare facilities industries may not be able to increase their guidance for the near future due to uncertainty surrounding Medicare Part D programs.
