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The Key Takeaways
- The S&P 500 fell 0.3% on Tuesday, Dec. 10, as the cooldown from last week's record-setting rally continued ahead of key inflation data.
- Walgreens shares soared after reports surfaced that it was considering selling to a private equity company.
- Shares of Moderna plunged after Bank of America analysts expressed uncertainty about the true value of the vaccine maker's pipeline.
On Tuesday, major U.S. stock indexes declined ahead of the Consumer Price Index (CPI), an important gauge of inflation. This report could affect next week’s Federal Reserve rate-setting decision.
The S&P 500 and the Nasdaq both ended Tuesday's session around 0.3% lower, while the Dow lost around 0.4%.
Moderna (MRNA) shares plunged 9.1%, losing the most of any S&P 500 stock after Bank of America reinitiated coverage of the biotech stock with an “underperform” rating. Analysts pointed to the pharmacy maker’s elevated levels of research and development (R&D) spending and uncertainty about the true value of Moderna’s pipeline. They also said the financial impact of Moderna’s respiratory syncytial virus (RSV) vaccine will likely remain limited.
Super Micro Computer’s (SMCI), a provider of servers and data storage, saw its shares fall by 8.2%. Nasdaq gave Supermicro until the end of February 2025 to file its late annual report. Supermicro, whose CEO said he was confident that it would not be removed from Nasdaq’s exchange, has been a source of concern for some time.
Oracle’s (ORCL), a cloud-based software company, surpassed quarterly profits expectations. However, its sales were below forecasts and the stock price dropped by 6.7%. Citi analysts doubted the potential of Oracle’s cloud revenues, despite Oracle citing record demand for artificial intelligence. Oppenheim analysts noted that Oracle’s performance in the latest quarters was less impressive than previous ones, despite its strong growth.
Walgreens Boots Alliance (WBA) shares surged 17.7%, notching the top daily gains in the S&P 500. The embattled pharmacy giant is reportedly considering selling itself to private equity firm Sycamore Partners. Walgreens, Sycamore and The Wall Street Journal have discussed a potential deal which could be finalized in 2025. The private equity firm is likely to explore partnerships and/or sell parts of the company if it’s a successful buyout.
The shares of Alphabet parent Alphabet, Alphabet Inc. (GOOGL), rose 5.6% after the company unveiled their latest quantum computer chip. The company announced the new chip. “Willow” Chip outperformed earlier iterations of a benchmark for quantum computing. The development was hailed as an important step in the creation of a practical quantum machine that could be used in drug discovery or battery design. Alphabet Class C shares (GOOGs) were up by 5.4%.
A federal court judge has blocked the proposed merger of grocery stores Albertsons and Kroger. Federal Trade Commission (FTC), a federal agency, argued the merger of two supermarket chains would reduce direct competition and increase prices for customers while reducing the bargaining power of unionized employees. Kroger stock rose by 5.1% in response to the court ruling. Albertsons’ shares fell by 2.3%.
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