Key Takeaways

• Troubled chipmaker Intel has rejected a bid by chip designer Arm Holdings for its product division, Bloomberg reported late Thursday.
• It was the latest of several Intel-related rumors. Earlier this week, the news outlet reported that Apollo Global Management had offered to invest as much as $5 billion in Intel, days after The Wall Street Journal said that Qualcomm had made a “takeover approach” for it.
• Intel shares have lost more than half their value since the start of the year amid concerns about the chipmaker’s ability to turn around its business.

Yet another Intel (INTC) rumor is out there—this time, about a deal that appears not to be happening.

The embattled chipmaker, shares of which are down more than 50% this year, rejected a bid by chip designer Arm Holdings (ARM) for its product division, Bloomberg reported late Thursday.

Intel’s woes have attracted deal activity, as well as deal chatter. Earlier this week, the news outlet reported that Apollo Global Management had offered to invest as much as $5 billion in Intel,. Days earlier,The Wall Street Journal said that Qualcomm (QCOM) had made a “takeover approach” for the company.

Apart from its product division, which sells chips for personal computers, servers and networking equipment, Intel’s other main unit is one that operates its factories. Both Arm and Intel declined to comment.

Intel, which is struggling with high debt levels and trying to stem losses, earlier this month updated investors about its strategic plans, which include separating the chip product division from its manufacturing operations.

Intel shares finished Friday—and the week—little changed. Investor concerns that the chipmaker will struggle to turn around its business have weight on the stock this year.

American depositary receipts (ADRs) of Arm fell more than 2%.

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Key Takeaways

• The S&P 500 ticked down 0.1% on Friday, Sept. 27, 2024, as investors digested the latest inflation data revealing consumer price pressures eased in August.
• Dell Technologies posted the steepest loss in the index as the tech sector lost ground.
• Shares of casino operators moved higher following this week’s economic stimulus announcement in China, which could bolster operations in Macau.

Major U.S. equities indexes were mixed on the final trading day of the week as investors digested the latest Personal Consumption Expenditure (PCE) data showing consumer price pressures cooled in August, reinforcing expectations that the Federal Reserve will continue cutting interest rates.

The S&P 500 ticked 0.1% lower Friday, while the Nasdaq edged down 0.3% amid underperformance from the tech sector. The Dow added 0.3% to end the week at a record closing high.

Dell Technologies (DELL) was one of three stocks added to the S&P 500 Monday, sending shares higher earlier this week, but the stock gave back some of those gains Friday. Shares tumbled 5% Friday, in the steepest drop of any S&P 500 stock. The losses for Dell came despite bullish commentary from analysts at Deutsche Bank, who restarted coverage of the stock Thursday with a “buy” rating, forecasting double-digital sales growth driven by strength across servers, storage products, and commercial PCs.

Globe Life (GL) shares tumbled 4.7% after the insurer said it could face a lawsuit from the Equal Opportunity Employment Commission (EEOC). According to a Globe Life regulatory filing, the EEOC found “reasonable cause” to believe the company discriminated against six of its sales agents on the basis of sex. The provider of life, supplemental health, and annuity plans said it would defend itself against any potential legal actions, claiming the issue would not result in a material loss for the company.

Shares of PC and printer manufacturer HP (HPQ) fell 3.9% after Bank of America downgraded the stock to “neutral.” BofA analysts said margins from HP’s printer segment could retreat from currently elevated levels compared with their historical average. Although analysts suggested some upside potential in the PC segment, particularly from computers with artificial intelligence (AI) capabilities, they expect HP’s free cash flow (FCF) to plateau in the near term, with earnings growth driven exclusively by share buybacks.

Shares of casino operators moved higher following this week’s announcement of an economic stimulus in China, which could provide a boost to their properties in Macau. Wynn Resorts (WYNN) jumped 7.2% on Friday, notching the top performance in the S&P 500, after Morgan Stanley upgraded the stock to “overweight” and increased its price target. Analysts highlighted Wynn’s ongoing investments, high-end offerings, locations near newly launched attractions, and upcoming project in the United Arab Emirates. Shares of competitor Las Vegas Sands (LVS) were up 5.6%.

Shares of oil and gas exploration and production company APA Corp. (APA) posted a daily gain of 6%. Crude oil futures prices staged a slight recovery on Friday after dropping earlier in the week amid expectations of an output boost by major producers. APA also announced this week that it would extend its partnership with software infrastructure provider Palantir Technologies (PLTR) aimed at harnessing AI technology to help the energy company optimize its operational planning, supply chains, production, and contract management.

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Key Takeaways

• Helene made landfall in Florida as a Category 4 hurricane Thursday night with wind speeds of about 140 miles per hour, but now downgraded to tropical storm.
• At least 20 deaths have been reported across three states.
• Almost 4 million people had lost power across South Carolina, Georgia, North Carolina and Florida as of 1:30 pm Eastern, according to PowerOutage.us.
• Though Helene has weakened but “life-threatening storm surge, winds, and heavy rains continue,” the National Hurricane Center said.

Helene made landfall in Florida as a Category 4 hurricane Thursday night with wind speeds of around 140 miles per hour. It has since weakened to a tropical storm but continues to cause damage, deaths and severe power outages.

Across Florida, Georgia and North Carolina, at least 20 people have died as of midday Friday, The New York Times reported.

Almost 4 million people had lost power across South Carolina, Georgia, North Carolina and Florida as of 1:30 pm Eastern, according to PowerOutage.us.

No Longer A Hurricane, But Still Causing Damage

Helene weakened to a tropical storm as it moved farther inland over Georgia, but “life-threatening storm surge, winds, and heavy rains continue,” the National Hurricane Center said.

The storm is producing “historic and catastropic flooding over portions of the Southeast and Southern Appalachians,” the center also said Friday at midday Eastern Time.

Insured losses from Helene could add up to $3-$6 billion, UBS analysts said in a note Thursday, quoting preliminary estimates from reinsurance company Gallagher Re. In comparison, Hurricane Ian, a Category 4 storm in 2022, caused damage worth roughly $55 billion, the UBS analyst wrote.

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Key Takeaways

• The Michigan Consumer Sentiment Index increased to finish September at 70.1, its highest level since April.
• Inflation expectations fell again as the survey showed that consumers were noticing the slow down in the inflation rate.
• Economists were expecting a more modest increase in the Michigan survey, which stands in contrast to the similar consumer confidence survey that declined this month on labor worries. 

Consumers are feeling good about cooling inflation, and consumer sentiment continued its climb in September. 

The Michigan Consumer Sentiment Index finished September at 70.1, higher than its preliminary result earlier this month, and above the 69.3 reading that economists surveyed by the Wall Street Journal and Dow Jones Newswires were looking to see. 

The closely-watched survey showed improvement in all five of its categories, including a rise in year-ahead business expectations, as the inflation-focused survey reached its highest levels since April. 

“While sentiment remains below its historical average in part due to frustration over high prices, consumers are fully aware that inflation has continued to slow. Sentiment appears to be building some momentum as consumers’ expectations for the economy brighten,” said Joanne Hsu, director of the Surveys of Consumers. 

Inflation Expectations Fall as Price Pressures Ease

Notably, year-ahead inflation expectations in the survey fell for the fourth straight month to drop to 2.7%. The Federal Reserve closely follows consumer expectations on inflation, as officials have said that if price setters and wage payers believe that prices are moving higher, they will act in ways that create those conditions.

This increase in consumer sentiment comes as cooling inflation prompted the Federal Reserve to begin to reduce interest rates. Today’s data from the Personal Consumption Expenditures (PCE) index, the Fed’s preferred measure of inflation, reaffirmed that inflation was decelerating and boosted chances of more rate cuts. The PCE index showed that annual price increases slowed to 2.2% in August, the lowest year-over-year rate in more than three years. 

“Lower interest rates will certainly provide some relief, particularly for more highly indebted consumers that will benefit from a reduction in variable rate credit or may be able to refinance higher-fixed rate mortgages originated in the past few years,” said Jim Baird, chief investment officer with Plante Moran Financial Advisors.

The positive Michigan survey stands in contrast to the similar Conference Board’s Consumer Confidence Index, which is more sensitive to labor conditions, and showed its largest drop in three years as people began expressing more worries about the jobs market. 

“Even strong indications that inflation continues to ease doesn’t alleviate the ongoing challenge posed by elevated prices, as many households continue to feel the weight of a higher cost of living,” Baird said. 

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Key Takeaways

• Accenture shares could remain on watchlists after jumping more than 5% Thursday following a stronger-than-expected earnings report from the management consultancy giant, which is benefitting from rising demand for its generative AI services.
• A recent dip in the stock found support near the 200-day moving average, with Thursday’s gap higher forming a doji—a single candlestick pattern in which the open and close prices are similar, typically reflecting indecision among market participants.
• Investors should monitor key overhead price levels on Accenture’s chart around $387 and $438 while watching the $335 area during retracements.

Accenture (ACN) shares could remain on watchlists Friday after jumping more than 5% Thursday following a better-than-expected earnings report and outlook from the management consultancy giant.

The Dublin-based company, which also raised its quarterly dividend and approved an additional $4 billion in stock repurchases, has seen its share price rally around 17% over the past three months as businesses turn to the firm’s generative AI solutions in an effort to reduce costs and improve efficiencies.

Below, we discuss the technicals on Accenture’s chart and identify important post-earnings price levels investors should watch out for.

Bulls Defend 200-Day Moving Average 

Accenture shares broke out from an inverse head and shoulders in July before undergoing a retracement to the pattern’s neckline where the stock found a floor of support.

More recently, bulls snapped up a dip to the closely-watched 200-day moving average (MA) following an impulsive move higher, with Thursday’s stock gap closing above last week’s peak on above-average volume to form a doji — a single candlestick pattern in which the open and close prices are similar, typically reflecting indecision among market participants.

In a win for the bulls, the 50-day MA sits poised to cross above the 200-day MA to form a golden cross, a chart signal that predicts higher prices.

Accenture shares rose 5.6% to close at $355.81 on Thursday.

 Key Overhead Levels to Watch

Looking ahead, investors should keep an eye on two key overhead levels on Accenture’s chart.

The first sits around $387, a location where the shares could encounter significant resistance near the prominent March peak.

We can forecast a price target to watch above the stock’s record high by using a bars pattern. which uses prior price action to forecast a potential future move.

In this case, if we take the stock’s trending move higher from late October to early March and position it from this month’s low, it projects an upside target of around $438. We selected this prior move as it started from a pullback to the 200-day MA, similar to the stock’s latest upswing.

Important Retracement Level to Watch

Given the relative strength index (RSI) points to nearing overbought conditions in the stock, investors should keep the $335 level in mind during periods of profit-taking, an area on the chart likely to encounter support near a trendline connecting the January and September swing lows with the 200-day MA.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Shares Hit Another Record High Thursday

Key Takeaways

• Shares in electric utility Vistra, the biggest gainer in the S&P 500 this year, hit another record high in early trading Thursday before losing ground.
• Analysts say that the utility’s nuclear assets place it in a position to capitalize on the significant energy requirements needed to power AI infrastructure, such as data centers.
• Investors should monitor key lower price levels on Vistra’s chart around $107, $95, and $76.
• The measuring principle, which calculates the distance between the symmetrical triangle’s two trendlines near the start of the pattern and adds that amount to the breakout point, projects an upside target in the stock of $135.

Shares in electric utility Vistra (VST), the biggest gainer in the S&P 500 this year, hit another record high in early trading Thursday before losing ground to close lower.

Wall Street analysts say that the utility’s nuclear assets place it in a position to capitalize on the significant energy requirements needed to power artificial intelligence (AI) infrastructure, such as data centers. In reports this week, Jefferies bumped its 12-month target on the stock to $137 from $99, while Morgan Stanley upwardly revised its target on the shares to $132 from $110,

The AI utilities poster-child’s stock price has surged three-fold since the start of the year, recently toppling AI favorite Nvidia (NVDA) for the coveted position of the S&P 500’s top performing stock.

Vistra hit a new high of $122.01 early Thursday, before retreating to finish 4.1% lower at $114.16. The stock had risen nearly 6% on Wednesday.

Below, we take a closer look at Vistra’s chart and use technical analysis to point out important price levels to watch out for.

Symmetrical Triangle Breakout

After completing a 12-month trending move higher in May, Vistra shares traded within a symmetrical triangle for several months before staging a breakout above the pattern earlier this month. 

In recent weeks, the stock has continued to make an impulsive move higher on above-average volume, indicating strong buying conviction.

The relative strength index (RSI) confirms bullish price momentum with a reading above the 80 threshold, but also warns of extremely overbought conditions that could give rise to near-term profit taking.

Looking ahead, investors should monitor several key levels on Vistra’s chart likely to attract attention.

Lower Price Levels to Watch

During retracements, the shares could initially retest the $107 level, where they may find support around the prominent late-May peak, which also marks the start of the symmetrical triangle.

Further selling could see the shares fall to the $95 region, a location on the chart where investors may seek entry points near a trendline connecting comparable trading levels from May to July with the Sept. 19 pre-gap high.

A deeper retracement in the shares could bring the $76 level into play. This area, sitting just below the symmetrical triangle’s lower trendline, would likely encounter buying interest near the April swing high and this month’s swing low.

Measuring Principle Upside Target 

To project a price target for the stock’s current trending move, investors can use the measuring principle. To do this, we calculate the distance between the symmetrical triangle’s two trendlines near the start of the pattern and add that amount to the breakout point. For example, we add $50 to $85, which forecasts an upside target of $135.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• The S&P 500 added 0.4% on Thursday, Sept. 26, reaching a record closing high after a positive update on second-quarter GDP growth.
• Micron Technology shares soared as strong AI demand helped the memory chip maker blow past quarterly sales estimates.
• Shares of Super Micro Computer plunged amid reports of a federal investigation into the company’s accounting practices.

Major U.S. equities indexes pushed higher as the latest estimates from the Bureau of Economic Analysis showed that U.S. gross domestic product (GDP) growth slightly outpaced expectations in the second quarter of 2024.

The S&P 500 added 0.4% on Thursday, printing a new all-time closing high. The Dow gained 0.6%, ending just below the level of Tuesday’s record close. The Nasdaq was also up 0.6%, boosted by strength in the tech sector and solid gains from semiconductor stocks.

Micron Technology (MU) shares secured Thursday’s top performance in the S&P 500, skyrocketing 14.7% after the memory chip maker beat revenue estimates and provided higher-than-expected sales guidance for the current quarter. The Nvidia (NVDA) partner nearly doubled its revenue from the year-ago period, with strong artificial intelligence (AI) demand helping underpin the strong sales growth. The firm’s CEO said Micron’s competitive positioning has reached its highest point in company history.

Circuit board manufacturer Jabil (JBL) also reported strong quarterly results, topping sales and profit estimates for its fiscal fourth quarter. Like Micron, Jabil benefitted from strong AI demand during the quarter. The electronics manufacturer and Apple (AAPL) supplier also approved a $1 billion share repurchase plan and announced several cost-cutting initiatives. Jabil shares jumped 11.7% on Thursday.

Shares of beauty products company Estée Lauder (EL) popped 10.0% higher following the announcement of an economic stimulus in China. The makeup maker generates around a third of its revenue from the Asia/Pacific region. However, in its most recent earnings report, Estée Lauder pointed to softness in the prestige beauty market in China as a key factor behind its 2% year-over-year decline in organic net sales. Any improvement in consumer sentiment that results from the stimulus could flow through to increased consumer spending and help drive a sales recovery for Estée Lauder in the key market.

Super Micro Computer (SMCI) shares plunged 12.2%, falling further than any other S&P 500 stock on Thursday. According to a report in The Wall Street Journal, the U.S. Department of Justice (DOJ) has launched an investigation into the server and data storage provider’s accounting practices. News of the DOJ probe follows a report published last month by activist short-selling firm Hindenburg Research alleging that Supermicro had engaged in accounting manipulation.

Crude oil futures prices fell more than 3% amid reports that Saudi Arabia and other major producers are prepared to increase oil output in December, pressuring oil and gas stocks. Diamondback Energy (FANG) stock slid 6.5%, with news that insiders sold more than $2.3 billion worth of in the exploration and production company.

Softness in natural gas prices also dragged on companies in that part of the energy sector. Shares of natural gas players Targa Resources (TRGP) and Oneok (OKE) were down around 5.9%.

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Key Takeaways

• Jabil beat fourth-quarter profit and sales estimates on the soaring demand for artificial intelligence infrastructure products.
• The Apple supplier approved a $1 billion share repurchase.
• Jabil also announced a restructuring, including layoffs, which will cost $150 million to $200 million in fiscal 2025.

Jabil (JBL) shares soared Thursday after the circuit board manufacturer posted better-than-expected results on artificial intelligence (AI) demand, authorized a stock buyback program, and launched a restructuring that includes job cuts.

The company, which supplies Apple (AAPL), reported fourth-quarter adjusted earnings per share (EPS) of $2.30, ahead of consensus forecasts of analysts polled by Visible Alpha. Revenue fell 17.7% year-over-year to $6.96 billion, reflecting the loss from the divestiture of its Mobility division last December, but that still beat estimates.

CEO Says Jabil ‘Well-Positioned To Capitalize on Secular Trends’

Chief Executive Officer (CEO) Mike Dastoor noted that during its fiscal year, along with the Mobility sale, Jabil saw growth in the AI datacenter sector while dealing with softness in multiple end-markets. He added that while short-term demand remains challenged in certain end-markets, “we are confident that in the mid-to-long term, we are well-positioned to capitalize on secular trends.”

Jabil’s board also approved a $1 billion share repurchase plan. 

Along with the earnings news, the company announced a restructuring plan “to align our support infrastructure to further optimize organizational effectiveness.” It explained that would entail layoffs across the selling, general and administrative (SG&A) and manufacturing cost base, and capacity realignment. Jabil explained that it expects to take a $150 million to $200 million charge in fiscal 2025 to implement the changes.

Despite Thursday afternoon’s nearly 12% gains to $126.85, shares of Jabil remain slightly lower year-to-date.

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Key Takeaways

• CarMax posted an increase in retail unit sales in the second quarter, and earnings and revenue came in above estimates.
• Comparable store unit sales increased 4.3% year-over-year.
• CEO Bill Nash noted the positive results came even as the industry faced “auto loan loss pressure.”

CarMax (KMX) shares drove higher Thursday after the biggest U.S. used car retailer posted better-than-anticipated results on higher retail vehicle sales.

The company reported fiscal 2025 second-quarter earnings per share (EPS) of $0.85, $0.02 more than the estimate by analysts surveyed by Visible Alpha. Although revenue slipped 0.9% year-over-year to $7.01 billion, that also exceeded forecasts. 

Retail Used Unit Sales Jump 5.1%

Retail used unit sales increased 5.1% to 211,020, while wholesale vehicle sales declined 0.3% to 141,458. Comparable store unit sales gained 4.3%.

Gross profit per retail unit was $2,269 and $975 per wholesale unit. Both were in line with last year’s second quarter.

The company bought 300,000 vehicles in the period, a 2.9% increase, driven by a 61.4% jump in purchases from dealers. Purchases from consumers dropped 1.2%.

CEO Says Managing Through ‘Auto Loan Loss Pressure’

Chief Executive Officer (CEO) Bill Nash explained that CarMax was pleased with the “continued improvement of the business” while managing through “industry-wide auto loan loss pressure.”

CarMax shares advanced about 6% in late-morning trading Thursday to move into positive territory for 2024.

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Key Takeaways

• Micron Technology shares surged Thursday on its strong outlook, leading Nvidia and other semiconductor stocks higher. 
• Nvidia, its partner Micron, and other chip companies have seen their revenue and stock prices climb amid a boom in demand for infrastructure to support AI.
• Micron CEO Sanjay Mehrotra said Wednesday the company’s sales have nearly doubled from a year ago, with record-high revenue expected in the current quarter.

Micron Technology (MU) shares surged Thursday after the memory chip maker’s revenue and outlook blew past expectations, leading Nvidia (NVDA) and other semiconductor stocks higher. 

Shares of Micron were up over 16% in pre-market trading, while shares of partner Nvidia (NVDA) gained close to 3%. Advanced Micro Devices (AMD), Broadcom (AVGO), and Taiwan Semiconductor Manufacturing Company (TSM) also rose, pulling Nasdaq futures up close to 1.5%.

Micron’s Sales Surge on ‘Robust AI Demand’

Nvidia, Micron, and other chip companies have seen their revenue and stock prices climb amid a boom in demand for infrastructure to support artificial intelligence (AI).

Micron CEO Sanjay Mehrotra said Wednesday the company’s fiscal fourth-quarter sales nearly doubled from a year ago to $7.75 billion, driven by “robust AI demand.”

Mehrotra also said the company’s sales are expected to continue growing, projecting current-quarter revenue could reach a record high between $8.5 billion to $8.9 billion.

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