S&P 500 Daily Recap: Nvidia Earnings Propel Markets; Alphabet Stumbles

Key Highlights:

The S&P 500 rose 0.5% on Thursday, Nov. 21, 2024, buoyed by Nvidia's strong earnings, which reignited enthusiasm for the AI revolution.

Super Micro Computer saw a 15% surge, fueled by Nvidia's earnings call mention, marking its third top daily performance of the week.

Alphabet shares fell 4.7% as the Justice Department pushed for the sale of Chrome to address its alleged monopoly in search.

Market Overview

U.S. stocks gained traction on Thursday, spurred by Nvidia's (NVDA) stellar third-quarter results. The chipmaker surpassed revenue and profit expectations, bolstering confidence in the AI sector despite warnings of potential supply chain headwinds in the coming quarter.

The S&P 500 advanced 0.5%, while the Dow Jones Industrial Average climbed 1.1%. The Nasdaq, after spending much of the session in the red, edged into positive territory with a marginal gain.

Top Performers

Super Micro Computer (SMCI):

SMCI shares soared 15%, leading the S&P 500 for the third time this week. Nvidia highlighted its partnership with the server maker during its earnings call, adding to optimism around the company. Earlier in the week, Supermicro filed a compliance plan for its delayed annual report, reducing the risk of delisting by the Nasdaq. Nvidia shares also gained 0.5%.

Amentum (AMTM):

Amentum stock jumped 10.5%, partially recovering from recent losses. Positive news included a $389 million logistics contract with the U.S. Army and a partnership with the Netherlands to explore nuclear energy projects. However, the company remains in a precarious position amid uncertain government efficiency policies under the incoming administration.

Deere & Company (DE):

Deere shares climbed 8.1% following a better-than-expected fiscal fourth-quarter earnings report. Lower raw material and freight costs helped offset weaker demand for farm equipment. Despite the strong quarter, Deere’s full-year guidance fell short of expectations, with the company citing continued pressure on farm incomes.

Vistra Corp. (VST):

Vistra surged 7.8%, building on gains from Wednesday after announcing a $1.25 billion private offering of senior secured notes. The Texas-based utility has benefitted from increased demand from energy-intensive data centers, making it the S&P 500’s best-performing stock in 2024 with a 330% year-to-date gain.

Lagging Stocks

Alphabet (GOOGL):

Alphabet dropped 4.7%, the biggest decline among S&P 500 stocks, after the Justice Department recommended the company divest its Chrome browser to curb its alleged monopoly in search. The DOJ also called for safeguards to prevent Alphabet from disadvantaging competitors on the Android operating system. Alphabet plans to submit proposals in December to address these concerns.

TransDigm Group (TDG):

Shares of aerospace component supplier TransDigm fell 4.1% after a short-seller report accused the company of price gouging and exploiting government inefficiencies. The report suggested that TransDigm could face heightened scrutiny under new efficiency initiatives.

GE Healthcare Technologies (GEHC):

GE Healthcare shares slid 3.4% despite hosting its 2024 investor day, where it reaffirmed growth targets and raised its dividend. Challenges in China, including a sluggish recovery expected to persist into 2025, tempered investor sentiment.

Nvidia's impressive earnings and its impact on related stocks like Super Micro Computer underscored the ongoing momentum in the AI sector. However, significant declines in Alphabet and regulatory concerns surrounding tech giants highlighted persistent challenges for the broader market.