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The Key Takeaways
- The S&P 500 added 0.5% on Thursday, Nov. 21, 2024, as results from chip giant Nvidia reinvigorated optimism around the AI revolution.
- Super Micro Computer stock surged after the server maker received a shoutout during Nvidia's earnings call, extended this week's gains.
- Alphabet’s shares fell after the Justice Department announced that it should sell its Chrome web browser to end its monopoly over the search industry.
The major U.S. equity indices rose a day following Nvidia’s (NVDA), which is the most valuable company in the world, beating revenue and profit estimates for the third quarter. However, the company warned that supply chain issues may crimp the revenue growth of the current quarter.
The S&P 500 ticked up 0.5%, while the Dow advanced 1.1%. The Nasdaq, which had been trading lower for most of the day before recovering in the afternoon with a gain less than 0.1%.
Super Micro Computer (SMCI) shares jumped 15%, logging the top daily performance in the S&P 500 for the third time this week. The gains on Thursday came after Nvidia announced its partnership with the maker of server hardware during its earnings call yesterday night. Supermicro has filed a plan of compliance related to its delayed annual report. This will help Supermicro avoid being delisted by Nasdaq. Nvidia shares increased by 0.5%.
Amentum’s (AMTM) shares jumped by 10.5% this week, clawing back some of its recent losses. The efficiency priorities of the new presidential administration have created an uncertain outlook for contractors. Amentum experienced some positive developments during the week. The company secured a contract worth $389 million to provide logistical assistance to the U.S. Army. They also partnered with Dutch authorities to evaluate possible nuclear power projects.
Deere, a manufacturer of heavy-duty farming machinery and tractors, posted a better-than expected profit for the fourth quarter of its fiscal year. Its shares rose 8.1%. Deere was able to overcome a drop in farm equipment demand by reducing production costs due to more moderate raw materials prices and freight costs. Deere’s full-year guidance was lower than expected, due to the firm’s expectation that farm incomes will continue to be under pressure and drag down expenditure on major agricultural machinery.
Vistra (VST), the electric generator, announced Wednesday that it was offering a private $1.25billion in senior secured bonds. The shares soared 7.8%. The opportunity for the Texas-based utility to provide power for energy-intensive data centers has helped catapult Vistra stock to the best performance in the S&P 500 for 2024, with gains of above 330%.
Shares of Google parent Alphabet (GOOGL) fell 4.7%, the most of any S&P 500 stock, after the Justice Department said the tech giant should be forced to divest its Chrome browser, arguing the company has a monopoly in the search business. The DOJ suggested that Google implement changes to make sure its control of Android’s mobile operating system doesn’t disadvantage others. The company has said that it will present its own proposals to the DOJ in December.
A newsletter focusing on short-selling released a report Thursday alleging aerospace component supplier TransDigm Group has engaged in price gouging, and exploited government inefficiencies to increase its profits. Report cites past accusations of excessive and accounting irregularities. TransDigm may be under scrutiny as a result of government efficiency efforts. TransDigm shares lost 4.1%.
GE Healthcare Technologies, the medical technology company that spun off from General Electric in early 2014, held its 2024 Investor Day. The company increased its quarterly dividend, confirmed its organic revenue targets and highlighted its innovation pipeline. However, shares fell 3.4%. GE Healthcare has a challenging climate in China. It expects the recovery to remain muted for the first half in 2025.
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