S&P 500 Hits Intraday Record at 6,100 Amid Strong Earnings Reports

S&P 500 Hits Intraday Record at 6,100 Amid Strong Earnings Reports

Key Highlights:

• S&P 500 rose 0.6% to 6,086.4, hitting a new intraday record of 6,100 points.
• The Nasdaq gained 1.3% to 20,009.3, driven by tech and communication services.
• The Dow Jones Industrial Average increased 0.3% to 44,156.7.
• Top Gainers: Netflix, Monolithic Power Systems, Moderna, and Seagate Technology.
• Top Losers: Edison International, First Solar, AES Corp., and Dominion Energy.

Top Gainers

1. Netflix (NFLX):

   • Performance: Up 9.7% (best performer in the S&P 500).
   • Drivers:
     • Beat Q4 sales and profit expectations.
     • Added 19 million new subscribers.
     • Expanded its share repurchase program by $15 billion.
     • Raised its 2025 revenue outlook, with analysts citing minimal resistance to subscription price hikes.

2. Monolithic Power Systems (MPWR):

   • Performance: Up 8.0%.
   • Drivers:
     • Listed as a "top pick" by several research firms.
     • Deutsche Bank highlighted revenue growth and margin expansion potential.
     • Oppenheimer emphasized the industry's transition to higher-power modules, benefiting Monolithic.

3. Moderna (MRNA):

   • Performance: Up 7.3%.
   • Drivers:
     • Received $600 million in additional U.S. government funding for mRNA vaccine development against pandemic-potential influenza strains.
     • Boosted by AI applications in cancer vaccine development, as highlighted by Oracle Chairman Larry Ellison.

4. Seagate Technology (STX):

   • Performance: Up 6.8%.
   • Drivers:
     • Beat quarterly sales and profit estimates.
     • Analysts highlighted improving demand and positive gross margin trends in the hard-disk drive sector.

Top Losers

1. Edison International (EIX):

   • Performance: Down 6.3% (biggest S&P 500 loser).
   • Drivers:
     • Legal challenges tied to the Eaton fire, with allegations linking the company's equipment to the incident.
     • Heightened liabilities from California wildfires.

2. First Solar (FSLR):

   • Performance: Down 6.3%.
   • Drivers:
     • Policy headwinds after President Trump's executive orders paused permitting for renewable energy projects.
     • Shares have fallen 20% since Trump's election due to uncertainty around renewable energy initiatives.

3. AES Corp. (AES) & Dominion Energy (D):

   • Performance: Both down 5.3%.
   • Drivers:
     • Exposure to wind energy, which faced setbacks from new federal reviews and policy pauses.

Market Outlook:

Investors are bracing for a flood of tech earnings next week, particularly from the "Magnificent Seven." While tech and communication services bolstered the Nasdaq, utilities faced the steepest losses amid uncertainty in renewable energy policies. As earnings season progresses, these mixed drivers will likely shape market momentum.