Important points
- The S&P 500 rose 0.7% on Thursday, April 11, 2024, following reports that wholesale price growth in March was lower than expected.
- Apple shares soared after reports that the company plans to overhaul its Mac computers with new versions of its own processors with AI capabilities.
- Shares in insurance company Globelife plunged after Fuzzy Panda disclosed a short position in the stock and cited fraud charges.
Major U.S. stock indexes were mixed as investors received fresh news on inflation, with the latest Producer Price Index (PPI) report revealing wholesale price increases were weaker than expected in March. became.
The S&P 500 rose 0.7% and the Nasdaq rose 1.7%, driven by outperformance in the technology sector. After spending most of the afternoon in positive territory, the Dow was little changed.
Paramount Global (PARA) stock drops 7.3% as Skydance plans to meet with Paramount management next week amid reports of developments regarding a potential merger with Skydance Media It rose to become the best performer on the S&P 500 index. The potential deal is controversial and was criticized by Paramount shareholder Matrix Asset Advisors earlier this week. Four directors are expected to resign due to concerns about the merger.
On a day that saw big gains for tech companies, Broadcom (AVGO) stock rose 4.5%. JPMorgan analysts reportedly said earlier this week that Broadcom could benefit from artificial intelligence (AI), catalyzed by increased investment in data centers that support AI.
A wave of excitement around AI helped lift other semiconductor stocks. Micron Technology (MU) stock rose 4.3%. Nvidia (NVDA) stock rose 4.1%, rebounding from a correction that briefly took it 10% below its closing high.
Apple (AAPL) stock rose 4.3% on reports that the company plans to overhaul its Mac computers with the latest version of its processors with AI capabilities. Analysts also pointed to the potential for tech giants to benefit from AI.
Shares of insurance company Globelife (GL) plunged 53.1%, posting the steepest loss in the S&P 500 after short seller Fuzzy Panda revealed that it had taken a short position in the stock. Fuzzy Panda announced that it has discovered multiple allegations of insurance fraud by Globe Life and its subsidiaries.
CarMax (KMX) stock plunged 9.2% after the used car retailer reported lower-than-expected fourth-quarter sales and profits. High interest rates on auto loans and a limited supply of used cars weighed on the company's performance.
Fastenal (FAST), which supplies screws and other fasteners to the construction and manufacturing markets, also missed quarterly estimates, sending its shares down 6.5%. Sales of fasteners decreased 4.4% compared to the same period last year. The company said inclement weather and complexities associated with the quarterly calendar negatively impacted its results.