Markets News, October 25, 2024: Stocks end mixed as S&P 500 and Dow snap six-week winning streak

The biggest S&P 500 movers on Friday

1 hour 43 minutes ago

denialist

• Shares of flooring manufacturers Mohawk Industries ( MHK ) plunged 13.7%, surrendering the S&P 500's biggest decline in the wake of a lackluster earnings report for the third quarter. Although sales and profit results fell in line with analysts' expectations, Mohawk cited sluggishness in the flooring market as high interest rates, persistent inflation, and declining consumer confidence weighed on the housing sector. On the bright side, the company said it expects interest rate cuts in various geographies to support the recovery next year.
• HCA Healthcare ( HCA ) shares fell 8.8% after the hospital operator's third-quarter revenue and earnings per share (EPS) fell short of consensus estimates. Although HCA maintained its guidance range for the full year, the company said results would likely be on the lower end, reflecting the negative impact of Hurricanes Helen and Milton.
• Colleague Hospital Company Universal health service (UHS) also released quarterly results. Although revenue came in slightly ahead of estimates, profits were lower than expected. Increased corporate expenses related to debt refinancing and legal settlements impacted the company's performance during the quarter. UHS shares sank 9.8% on Friday.

of the forwards

• Tapestry ( TPR ) shares rose 13.5%, gaining more than any other S&P 500 stock on Friday after a federal judge blocked the fashion holding company's planned acquisition of luxury industry peer Capri Holdings ( CPRI ). The judge sided with antitrust regulators who argued that the combination of Tapestry—with high-end brands Coach, Kate Spade and Stuart Weitzman—versus Versus and Michael Kors parent Capri would control competition in the luxury handbag market. Shares of Capri fell 48.8% after the court ruling. The companies said they would appeal the decision.
• shoe maker Decker Outdoors ( DECK ) posted better-than-expected sales and profit for its fiscal second quarter, and its shares rose 10.5%. Sales of the company's Hoka shoe brand grew nearly 35% year over year, while sales of the Ugg brand rose 13%. Direct-to-consumer (DTC) sales are up nearly 20% from a year ago. Along with the strong results, Deckers lifted its full-year sales forecast.

• Strong quarterly results also helped lift shares Digital Realty Trust (DLR), a real estate investment trust (REIT) that owns data center properties around the world. Digital Realty beat expectations with its funds from operations (FFO), an important measure of cash flow for REITs. Shares of the REIT closed 9.6% higher on Friday.

–Michael Bromberg

Retail investors are picking up individual stocks over ETFs

2 hours 27 minutes ago

Retail investors have been buying Nvidia ( NVDA ) and favoring the single stock more than exchange-traded funds lately. This may indicate optimism about the market.

Nvidia's net retail purchases totaled more than $1.1 billion between Oct. 17 and Oct. 23, according to Vanda Research, which tracks investment flows from retail buyers and sellers. That period, says Bhanda.

“The recent increase in single stock purchases suggests that confidence levels remain relatively optimistic,” Vanda analysts wrote in a note on Thursday. “In a more cautious environment we will see buying of ETFs increase as individuals generally prefer to stay invested but reduce risk levels by expanding exposure beyond concentrated single-name bets.”

Read the full article here.

–Trina Paul

The Nasdaq Composite briefly touched a record high on Friday

3 hours 54 minutes ago

The Nasdaq Composite hit an all-time high of 18,690 in early trade on Friday, its first record high since July.

The tech-heavy index gave back those levels but is on track to finish the session higher and record its seventh weekly gain.

NYSE wants longer trading hours

4 hours 33 minutes ago

The New York Stock Exchange (NYSE) said on Friday that it plans to do so Extend trading on its digital exchange to 22 hours a day as it seeks to tap global demand for US stocks.

The NYSE's plan would allow investors to trade all U.S. stocks, exchange-traded funds (ETFs) and closed-end funds between 1:30 a.m. ET and 11:30 p.m. ET every weekday, excluding holidays.

Extended trading currently runs from 4 am ET to 8 pm ET, with regular trading—when volume is typically highest—between 9:30 am ET and 4 pm ET.

The extension “underscores the strength of our U.S. capital markets and the growing demand for our listed securities around the world,” said Kevin Tyrrell, NYSE's head of markets. The proposal is subject to regulatory approval.

Interest in 24-hour trading has grown significantly in recent years. Online brokerage Robinhood ( HOOD ) launched its 24-hour market last year, allowing investors to trade 43 popular stocks and ETFs between 8 pm ET on Sunday and 8 pm ET on Friday.

Robinhood has expanded the list of stocks and funds that can be traded during this period.

–Colin Ledley

Centene Stock Pops on Membership, Revenue Growth

6 hours 10 minutes ago

Centene ( CNC ) shares rose on Friday after the managed care and health insurance provider's third-quarter results easily beat estimates as it grew its membership roll and premium and services revenue.

The company reported consolidated earnings per share (EPS) of $1.62, up more than 10% year-over-year to $42.02 billion.

Enrollment was 28.64 million compared to 27.97 million a year ago, boosted by a 22% gain in the marketplace and a 49% advance in Medicare prescription drug plans. Premium and service revenue rose nearly 6% to $36.90 billion.

Centine noted that based on ratings from the Centers for Medicare and Medicaid Services (CMS), about 46% of its Medicare Advantage enrollees were in plans rated 3.5 stars or higher, up from 23% the previous year.

Centene expects full-year revenue in the range of $159 billion to $161 billion, up from $155 billion to $157 billion previously.

The stock was up nearly 7% in recent trading to around $66 after rising above $70 at the start of Friday's session. Despite the gains, Centene's shares have lost 11% so far in 2024.

–Bill McCall

Decker's earnings boosted by strong Hoka sales

7 hours 46 minutes ago

Deckers Outdoors ( DECK ) shares rose Friday, a day after the footwear maker posted better-than-expected results and boosted its outlook as demand for Hoka brand shoes rose.

The company reported second-quarter 2025 earnings per share (EPS) of just under $1.59, up 20.1% from a year earlier to $1.31 billion. Both beat analysts' estimates compiled by Visible Alpha.

Hoka shoe sales rose 35% to $579.9 million, while Ugg sales rose 13% to $689.9 million. Domestic revenue was up 14% to $853.9 million, and international was up 33% to $457.4 million.

Deckers shares rose 13% on Friday morning, trading at their highest level since June and adding more than 50% of their value this year.

–Bill McCall

Versus parent Capri sunk as Tapestry deal blocked

8 hours 36 minutes ago

Shares of Capri Holdings ( CPRI ) fell nearly 50% after a federal judge blocked the $8.5 billion acquisition of Coach owner Malik Tapestry's ( TPR ) parent of Versace and Michael Kors.

Shares in Tapestry, which also owns the Kate Spade and Stuart Weitzman brands, rose 15% after the ruling, which was favored by antitrust regulators who argued the combination would harm competition and lead to higher prices.

The luxury brands announced the deal last year but the Federal Trade Commission (FTC) sued to block the merger, saying the combined firm would have too much power and reduce competition in the market for affordable luxury handbags.

On Thursday, Judge Jennifer Rochon of the Southern District of New York granted the FTC's motion for a preliminary injunction to block the proposed merger in a 169-page ruling.

Both Capri and Tapestry said they would appeal.

–Nisha Gopalan

Six-week winning streak in danger of ending

9 hours 43 minutes ago

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite have posted weekly gains for six straight weeks.

That streak is in danger of ending as trading continues on Friday. The chart below shows the performance of major indices this week through Thursday's close.

Futures points open higher for major indices

10 hours 34 minutes ago

Futures linked to the Dow Jones Industrial Average rose 0.2%.

S&P 500 futures rose 0.3%.

Nasdaq 100 futures rose 0.4%.