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Market Overview: S&P 500 and Corporate Earnings Updates

Key Takeaways

The S&P 500 experienced a decline of 0.3% on Friday, January 24, 2025, pulling back from the previous session’s record high as the trading week concluded. Texas Instruments disappointed investors with an underwhelming earnings forecast, leading to a drop in its stock. Meanwhile, NextEra Energy’s shares saw a significant rise following the announcement of a partnership with GE Vernova to develop gas-fired power projects.

On the last trading day of the week, U.S. equity markets closed lower amidst a flurry of corporate earnings reports and the inauguration of Donald Trump for a second presidential term.

S&P 500 Performance

The S&P 500’s decline of 0.3% marked a retreat from its prior record closing. Similarly, the Dow Jones Industrial Average fell by 0.3%, with the Nasdaq composite dropping by 0.5%, largely influenced by a downturn in technology stocks.

Sector-Specific Developments

Shares of Texas Instruments (TXN) fell by 7.5%, making it the weakest performer in the S&P 500. The downturn followed a disappointing profit outlook from the company, raising concerns about a slower-than-expected recovery in the analog chip market. This news negatively impacted other semiconductor stocks as well, with Microchip Technology (MCHP) and Analog Devices (ADI) losing 5.3% and 4.8%, respectively.

CF Industries (CF), a major fertilizer producer, also saw its stock decline by 7.5%. This drop came after JPMorgan downgraded the stock to “underweight,” citing anticipated rises in natural gas prices and potential shifts in agricultural land use that could suppress crop prices. The firm emphasized that geopolitical and trade uncertainties might further affect CF Industries’ performance.

Intuitive Surgical (ISRG) encountered a 4% dip in its stock after it reported quarterly sales and profit metrics that surpassed analyst expectations, largely due to an increase in da Vinci surgical procedures. However, the company faced currency challenges and suggested that growth in procedures might decelerate in 2025 compared to 2024. Additionally, anticipated tariffs could impact its adjusted gross profit margin.

Positive Market Movers

In contrast, NextEra Energy (NEE) saw its shares rise by 5.2%, the largest gain among S&P 500 stocks, following a partnership announcement with GE Vernova (GEV) aimed at developing various energy projects across the U.S. These initiatives will leverage both natural gas and renewable energy sources, including solar power and battery storage, with plans to cater to high-energy demand facilities such as AI data centers. However, GE Vernova’s shares fell by 3.9% on the same day, reversing earlier week gains.

Additionally, Welltower (WELL), a healthcare-focused real estate investment trust (REIT), experienced a 3.4% lift in its stock price after Bank of America raised its price target. Analysts are optimistic about Welltower’s core business, particularly its senior housing properties, which stand to benefit from demographic trends associated with an aging population. There is also potential for financial growth through its AI-driven real estate platform, WellGPT.

Retail Sector Updates

Shares of Lululemon Athletica (LULU) increased by 3.1% following an upgrade in its price target by KeyBanc. The company reported strong sales performance during the crucial holiday shopping season, reflecting its robust position in the athleisure market and ongoing success in growth initiatives, particularly within men’s apparel and digital sales channels.

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