Market Summary: November 20

U.S. stock indexes closed mixed on Wednesday, with the S&P 500 ending flat after rebounding from earlier losses. Investors were cautious ahead of Nvidia's quarterly earnings announcement, which is highly anticipated given its position as the world's most valuable company.

The Dow Jones Industrial Average managed a 0.3% gain, while the Nasdaq Composite dipped slightly, down 0.1%.

Key Movers

Keysight Technologies (KEYS):

Keysight shares surged 8.8% to reach a 52-week high, marking the best performance in the S&P 500. The company’s fourth-quarter results exceeded expectations, driven by investments in artificial intelligence (AI). Revenue and earnings per share (EPS) outperformed projections, and guidance for the upcoming quarter also came in stronger than anticipated.

Humana (HUM):

Humana rose 5.8% after Wells Fargo raised its price target on the stock. Analysts pointed to favorable updates in Medicare Advantage estimates, emphasizing an improved risk/reward outlook, particularly with federal government programs under Republican leadership.

CoStar Group (CSGP):

Shares of CoStar climbed 5.8% following Needham’s reiteration of a "buy" rating. Analysts highlighted the company’s strategic sales initiatives and its potential to benefit from a recovery in the commercial real estate market. A projected decline in interest rates in 2025 could also boost its bookings.

Target (TGT):

Target took a significant hit, with shares plunging 21.4%, the largest drop in the S&P 500. The retailer missed its third-quarter earnings expectations, citing cautious consumer spending amid persistent inflation concerns. While digital sales showed modest growth, comparable store sales declined. The disappointing results stood in stark contrast to Walmart, which reported strong earnings earlier in the week, driving its shares to record highs.

Super Micro Computer (SMCI):

Super Micro’s stock fell 8.7%, erasing gains from the previous session. The company has faced scrutiny over its accounting practices, which delayed its annual report. To address these issues, Super Micro recently submitted a compliance plan to the Nasdaq and announced the appointment of BDO USA as its new auditor.

Qualcomm (QCOM):

Qualcomm shares declined 6.3% after the company hosted its first investor day in three years. While management outlined plans to expand beyond smartphone chips into automotive and Internet of Things (IoT) markets, analysts expressed doubts about the company’s ability to achieve significant growth in these areas. Qualcomm continues to face challenges as Apple increasingly phases out its components.

Outlook

The market remains on edge, with Nvidia’s earnings report in focus as a key driver of sentiment. Meanwhile, companies like Keysight and CoStar demonstrated the benefits of strategic investments, while Target’s struggles highlighted the challenges posed by cautious consumer spending. Investors will be closely watching for signs of growth or volatility across sectors as the year draws to a close.