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What you need to know
- The S&P 500 added 0.6% on Wednesday, Dec. 4, 2024, with tech stocks leading the way higher as investors parsed comments from Fed Chair Jerome Powell.
- Salesforce shares surged as analysts reacted favorably to the cloud-based software provider's upbeat sales and profit outlook.
- Shares of Campbell's fell after the snack maker missed quarterly sales estimates and announced the departure of its CEO.
On Wednesday, the major U.S. stock indexes rose due to a strong performance by the technology sector.
The Federal Reserve Chairman Jerome Powell may have stressed that future moves by the Fed will be cautious, but optimism about another interest rate reduction at this months’ Fed meeting remains intact. ADP data showing that private-sector employment slowed in November supports the argument for more interest rate cuts.
The S&P 500 advanced 0.6%, extending a streak of record closing highs that dates back to last week's abbreviated Black Friday trading session. Dow Jones closed above 45,000 points for the first ever time, gaining 0.7%. Nasdaq also closed at its highest level ever, with a 1.3% gain on the back of tech strength.
Shares of customer relationship management software provider Salesforce (CRM) led the S&P 500 higher on Wednesday, popping 11%. Salesforce increased its sales and profits guidance for the full year. The analysts noted that Agentforce – the company’s self-driving artificial intelligence product – has drawn attention since its October release.
It wasn’t just Salesforce that enjoyed strong gains. ServiceNow (NOW), a company that offers AI to automate business process, also announced a partnership expansion with Amazon (AMZN). This expanded the integration of ServiceNow platform with Amazon Web Services (AWS) and Bedrock AI capabilities. ServiceNow’s shares soared by 6.2% Wednesday while Amazon stocks were up 2.2%.
Edwards Lifesciences shares (EW), which manufacture medical devices, increased by 5.7% following the company’s annual investor conference where it outlined its growth strategy. The structural heart specialist highlighted the pipeline of new technology, its upbeat financial forecast, and opportunities in market from its heart valve replacement and repair treatments.
Shares of Texas Pacific Land (TPL) dropped 11.6%, suffering the heaviest daily decline in the S&P 500 for the second time this week. Stocks have fluctuated since the index was added late last year. The land trust, a major landowner within the oil-rich Permian Basin has explored opportunities to diversify revenue streams including bitcoin mining, renewable energy and other projects.
Campbell’s’ (CPB) stock fell 6.2% on Thursday after it reported a lower-than expected quarter of sales. High marketing expenses contributed to a decline in profits year over year. Mark Clouse, the CEO of Campbell’s Soup and Snacks announced that he will step down to take on the role as president of Washington Commanders in the National Football League.
Bank of America’s commodities department has reduced its outlook for lithium prices. Analysts said that even though high-cost lithium producers are scaling back production, there will likely be surpluses in the market for the next two to three years. Albemarle shares (ALB), world’s biggest lithium miner fell by 5.9%.
MarketAxess Holdings’ (MKTX), an operator of a fixed income electronic trading platform, released data for November. The average volume of daily trading grew by 56% over the past year, but fell by 3% from month to month. In the U.S. segments of high-grade debt and high-yield, volumes and share declined in a sequential manner.
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