Market Recap: Stocks Slide on Inflation Worries; Warner Bros. Discovery Soars

Market Recap: Stocks Slide on Inflation Worries; Warner Bros. Discovery Soars

The U.S. stock market dipped on Thursday, December 12, 2024, as hotter-than-expected wholesale inflation data for November stirred uncertainty about the Federal Reserve’s next steps. Despite expectations for a rate cut at next week’s Fed meeting, the Producer Price Index (PPI) report raised concerns about persistent inflation heading into 2025.

The S&P 500 slipped 0.5%, the Dow Jones Industrial Average fell 0.5%, and the Nasdaq dropped 0.7%, sliding back below the 20,000-point mark it briefly surpassed earlier this week.

Key Movers

Adobe (ADBE): Shares plunged 13.7%, the biggest decline in the S&P 500, after the company’s weak sales forecast overshadowed better-than-expected fourth-quarter earnings. Concerns about Adobe’s ability to compete in the growing AI market weighed heavily on investors.

Warner Bros. Discovery (WBD): Shares surged 15.4% following an announcement to separate its TV division from its streaming and film operations. The restructuring aims to adapt to shifting industry trends and boost operational flexibility.

Nordson (NDSN): Despite beating quarterly earnings expectations, shares fell 8.2% after the company issued cautious guidance for fiscal 2025. A reduced backlog and restrained customer spending contributed to the muted outlook.

Western Digital (WDC): Shares dropped 5.6% after the company warned of continued pricing pressure on NAND flash memory, used in smartphones and solid-state drives.

Steel Stocks: Nucor (NUE) and Steel Dynamics (STLD) fell about 5% each after UBS downgraded the sector, citing unfavorable risk/reward dynamics following a recent rally.

C.H. Robinson (CHRW): Shares climbed 4.5% as the logistics firm highlighted its leaner operating model and successful AI integration during an investor event.

MetLife (MET): The insurance giant’s stock gained 3.6% after unveiling a five-year growth plan focusing on expanding group benefits, retirement services, asset management, and international markets while cutting costs.

Broader Market Impact

The inflation data added uncertainty to the Fed’s policy outlook, dampening investor sentiment. However, a few bright spots, such as Warner Bros. Discovery’s restructuring and MetLife’s growth strategy, managed to draw investor interest in an otherwise downbeat trading session.