KEY TAKEAWAYS

• Taiwan Semiconductor Manufacturing Co. and Samsung Electronics reportedly have been considering building large new factories in the United Arab Emirates.
• According to The Wall Street Journal, the projects being discussed “involve complexes that could contain numerous factories and cost over $100 billion in aggregate.”
• The reported talks come amid surging demand for artificial intelligence (AI) computing.

Taiwan Semiconductor Manufacturing Co. (TSM) and Samsung Electronics reportedly have been considering building large new chip-making factories in the United Arab Emirates amid surging demand for artificial intelligence (AI) computing.

According to The Wall Street Journal, the projects being discussed “involve complexes that could contain numerous factories and cost over $100 billion in aggregate,” but “government officials and industry executives say substantial technical and political hurdles remain.”

Among the hurdles on the technical side: The need for “super-clean water” to rinse silicon wafers—an issue when most of the UAE’s water is produced via desalination—and “concerns about the availability of engineering talent to staff major new factories far from the companies’ home bases.”

Samsung, TSMC Have Had Talks With US on Chips Sales To China

The report also said that the two companies have had talks with U.S. officials worried that the advanced AI chips produced would make their way to China, a key trading partner of the UAE.

Government subsidies globally have been helping the chip industry expand in the U.S., Europe, and Asia. In the U.S., the government has been doling out billions in grants as part of the CHIPS and Science Act of 2022 to ensure production is done domestically.

TSMC’s American depositary receipts (ADRs), which edged higher as markets opened Monday, are up almost 70% this year.

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Shares in the Beleaguered Chipmaker Gained 11% Last Week

Key Takeaways

• Intel shares will likely remain in the spotlight on Monday following reports of an acquisition approach by Qualcomm and a possible $5 billion investment from asset manager Apollo Global Management.
• Since gapping sharply lower in early August, Intel shares appear to be carving out a double bottom, a classic chart pattern that signals a potential trend reversal.
• Friday’s rally occurred on the highest trading volume since an early August gap, suggesting healthy buying conviction behind the move.
• Investors should monitor key overhead price levels on Intel’s chart at $22, $25, $30, and $35.

Intel (INTC) shares will likely remain in the spotlight on Monday after Bloomberg reported on Sunday that asset manager Apollo Global Management has offered to invest as much as $5 billion in the struggling chipmaker.

The weekend news came after The Wall Street Journal reported on Friday afternoon that Qualcomm (QCOM) has approached intel about a potential acquisition.

Intel Chief Executive Officer Pat Gelsinger recently outlined a comprehensive plan to turn around the troubled chipmaker and revive its slumping stock price.

Since the start of the year, Intel shares have lost more than half their value but recovered around 11% last week as investors cheered recent developments. The stock gained 3.3% on Friday to close at $21.84

Below, we’ll take a closer at the technicals on Intel’s chart and identify important overhead price levels to watch out for as the stock makes a recovery attempt.

Potential Double Bottom

Since gapping sharply lower in early August, Intel shares appear to be carving out a double bottom, a classic chart pattern that signals a potential trend reversal.

It’s also worth pointing out that as the formation’s second trough made a lower low, the relative strength index (RSI) made a relatively shallower low, indicating waning selling momentum.

More recently, Friday’s rally occurred on the highest trading volume since Aug. 2 gap, suggesting healthy buying conviction behind the move.

Key Overhead Price Levels to Watch

Amid further bullish price momentum, investors should monitor several important overhead levels on Intel’s chart.

The first sits around $22, an area just above Friday’s close where the shares will likely encounter resistance near the possible double bottom pattern’s neckline.

A volume-backed breakout above this key technical level could act as a catalyst for buying up to the $25 region, where the shares could run into overhead resistance from a trendline connecting two prominent swing lows in October 2022 and late February last year.

Further upside could see the stock rally into the key $30 area, a level on the chart where investors who bought the August and September lows may look to lock in profits near a multi-month trendline linking multiple peaks and troughs from November 2022 to late June this year. 

Finally, a longer-term trend higher may lead to a retest of resistance near $35, where the shares could encounter selling pressure near a horizontal line joining a series of comparable trading levels between June 2023 and July this year. This area on the chart could also find resistance from the downward sloping 200-day moving average and the 50% Fibonacci retracement level using a grid measured from the December high to the September low.

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

• Dell and Palantir are set to join the S&P 500 on Monday as part of the index’s quarterly rebalancing.
• Erie Indemnity also is joining the S&P 500. American Airlines Group, Etsy, and Bio-Rad Laboratories are being shifted to smaller indexes.
• The exposure associated with inclusion in major indees, as well as buying from index funds tracking the benchmarks, can support companies’ stocks.

The S&P 500 gets three new members Monday, with Palantir Technologies (PLTR), Dell Technologies (DELL) and Erie Indemnity (ERIE) set to join the benchmark index.

The trio will replace American Airlines Group (AAL), Etsy (ETSY), and Bio-Rad Laboratories (BIO). American Airlines and Bio-Rad will be part of the S&P MidCap 400 index, while Etsy will join the S&P SmallCap 600 index.

S&P Global announced the moves, part of its quarterly rebalancing, two weeks ago. It periodically shifts companies between its indexes to ensure they are accurately represented in terms of their market capitalization.

What S&P 500 Inclusion Can Mean

Companies often get a boost when their stock is added to a major index like the S&P 500, as the inclusion exposes them to a wider group of investors who could become aware of a company through an index.

The stock could also get a boost as its shares start to be included in index funds, which look to mirror the performance of a broader index by including shares of the companies included in it.

Shares of Dell closed Friday down 0.2%, while and Palantir rose 1%. Both shares have moved higher overall over the past two weeks since the announcement was made, as have shares of Erie, which fell 1% Friday.

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Key Takeaways

• Micron Technology will report fiscal fourth-quarter earnings after the bell Wednesday.
• Analysts expect the memory chip maker and Nvidia partner to swing to a profit and post higher revenue year-over-year.
• Investors will also likely be watching for updates on Micron’s inventory levels.

Micron Technology (MU) will report fiscal fourth-quarter earnings after the bell Wednesday, with analysts expecting the memory chip maker and Nvidia (NVDA) partner to swing to a profit.

The Street expects the company to report net income of $975.41 million for the quarter, compared to a loss of $1.43 billion a year earlier. Revenue is projected to nearly double to $7.66 billion, according to estimates compiled by Visible Alpha.  

Key Metric: Inventory

Micron has grappled with growing inventories, and Citi analysts recently lowered their price target for the stock to $150 from $175, citing its high inventory and weakness in demand for legacy memory components.

However, the analysts said inventory buildup could ease by the end of the year, adding they “expect Micron’s revenue and gross margins to increase for the next several quarters.”

The analyst consensus for Micron’s fiscal first quarter of 2025 is revenue of $8.4 billion and EPS of $1.45, according to Visible Alpha.

Business Spotlight: Demand Signals

Morgan Stanley analysts also lowered their price target for Micron to $100 from $140 ahead of the company’s earnings report, pointing to high inventories and signs of “persistently weak demand across all end markets except AI.”

Micron could see demand improve next year, the analysts said, fueled by “an AI-driven upgrade cycle for edge devices, continued strength in datacenters, and the potential for a traditional server refresh.”

Micron shares rose close to 2% to $90.90 Friday and have gained about 6.5% since the start of the year.

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Key Takeaways

• The S&P 500 slipped 0.2% on Friday, Sept. 20, receding from the record high it printed after this week’s interest-rate cut by the Federal Reserve.
• FedEx shares dropped after the package delivery giant missed quarterly estimates and reduced its full-year guidance, citing soft demand.
• Constellation Energy said it will restart operations at a shuttered nuclear plant to provide clean energy for Microsoft data centers, and shares of the utility soared.

Major U.S. equities indexes were mixed on the final day of a trading week that saw the financial headlines dominated by the latest Federal Reserve policy meeting.

A day after notching an all-time closing high in the wake of the Fed’s decision to lower interest rates, the S&P 500 slipped 0.2% on Friday. After wavering for much of the session, the Dow rallied in the afternoon to close with a gain of less than 0.1%, eking out its second straight record close. The Nasdaq ended Friday’s session 0.4% lower.

FedEx (FDX) shares plummeted 15.2%, the steepest drop of any S&P 500 stock, after the package delivery giant reported lower-than-expected quarterly results and trimmed its full-year forecasts. The company cited soft demand trends, especially in U.S. markets. Following the earnings release, analysts at the investment bank Jefferies reduced their price target on FedEx stock.

Lennar (LEN) topped sales and profit estimates with its fiscal third-quarter results, but shares of the homebuilder fell 5.4% after it predicted its gross margin on home sales would remain flat quarter-over-quarter. Friday’s downdraft reversed the gains posted by Lennar stock in the previous session following the Fed’s rate-cut announcement.

Shares of Old Dominion Freight Line (ODFL) also gave back the gains they notched after the Fed’s decision, dropping 5.2% on Friday. The less-than-truckload (LTL) freight company is navigating numerous headwinds, with shipment volumes and rates coming under pressure amid soft freight demand, increasing capital expenditures and a shortage of drivers.

Electric utility Constellation Energy (CEG) announced plans to restart operations at Pennsylvania’s Three Mile Island Unit 1 nuclear plant to provide environmentally friendly energy for Microsoft (MSFT) data centers. Constellation said it inked a 20-year deal with the software giant to create the Crane Clean Energy Center, generating carbon-free electricity to power Microsoft’s data centers on the Pennsylvania-New Jersey-Maryland power transmission system. Constellation Energy shares soared 22.3% on Friday, notching the top performance in the S&P 500.

Constellation’s announcement also helped lift shares of other electricity generators, including those of power utility Vistra (VST), which jumped 16.6%. Vistra also announced it will acquire the remaining 15% stake that it does not currently own in its subsidiary Vistra Vision, which includes nuclear, solar, and energy storage assets. Meanwhile, shares of fellow Texas-based power generator NRG Energy (NRG) added 6.4%.

Shares of CrowdStrike Holdings (CRWD) gained 8.1% following positive comments from analysts at Citigroup. The cybersecurity firm drew negative attention in July when a faulty update of its security software caused widespread technology outages worldwide. However, analysts applauded transparency from the company’s management team following the incident. Citi also pointed to CrowdStrike’s success in limiting customer churn and maintaining pricing.

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Key Takeaways

• Nike shares surged in extended trading Thursday after the global shoe and athletic apparel company named Elliott Hill its CEO, replacing John Donahoe.
• Hill will return to Nike after retiring in 2020, which at the time marked the end of a long career at the company.
• It’s been a tough year for Nike, and Hill will have the task of reviving a stock that lost about a quarter of its value from the start of 2024 through Thursday’s close.

Nike (NKE) shares surged in extended trading Thursday after the global shoe and athletic apparel company named Elliott Hill its CEO, replacing John Donahoe.

Nike’s shares were up about 9% in late trading. Hill will have the task of reviving a stock that, through Thursday’s close, lost about a quarter of its value from the start of the year. The company in June reported disappointing fiscal fourth-quarter results and warned of changes to its outlook, worrying investors.

Hill returns to Nike after retiring in 2020, which at the time marked the end of a long career at the company known for its “swoosh” logo and the “Just Do It” tagline.

“Given our needs for the future, the past performance of the business, and after conducting a thoughtful succession process, the board concluded it was clear Elliott’s global expertise, leadership style, and deep understanding of our industry and partners, paired with his passion for sport, our brands, products, consumers, athletes, and employees, make him the right person to lead Nike’s next stage of growth,” Nike Executive Chair Mark Parker said in a statement.

Nike has an investor day scheduled for Nov. 19.

Donahoe will officially leave his role in mid-October, staying on in an advisory role through the end of January, the company said.

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Key Takeaways

• The S&P 500 soared 1.7% on Thursday, Sept. 19, notching a record closing high a day after the Fed opted for an aggressive interest-rate cut.
• Darden Restaurant shares skyrocketed after the Olive Garden parent reported improving sales trends and announced a pilot delivery partnership with Uber Eats.
• Shares of Deckers Outdoor lost ground following the completion of the footwear and apparel company’s stock split.

Major U.S. equities indexes tore higher a day after the Federal Reserve announced a half-percentage-point reduction in its benchmark interest rate.

The S&P 500 jumped 1.7% on Thursday, while the Dow added 1.3%. The post-Fed gains lifted the benchmark index and its blue-chip counterpart to record-high closes. Outperformance from the tech sector after the rate-cut announcement helped the Nasdaq surge 2.5% higher.

The top performance in the S&P 500 came from shares of Darden Restaurants (DRI), which soared 8.3% on Thursday. The operator of Olive Garden, LongHorn Steakhouse, and other full-service restaurant chains reported improved sales trends following a downtick in foot traffic during July. Darden also announced plans to pilot an exclusive delivery partnership between Olive Garden and Uber (UBER) in select markets. If the collaboration proves successful, the companies intend to launch the program nationwide by May 2025.

Since many car buyers rely on financing to purchase a vehicle, stocks of companies in the automobile industry tend to be sensitive to interest-rate changes. The high rate environment weighed particularly on the affordability of electric vehicles (EVs), which typically come with steeper price tags than internal combustion options. Following yesterday’s Fed’s aggressive rate cut, Tesla (TSLA) shares jumped 7.4%. In other positive news, rival General Motors (GM) announced that it will offer an adapter that allows drivers to charge their GM EVs using Tesla’s Supercharger network.

Shares of energy infrastructure provider Quanta Services (PWR) added 6.5% after the investment analysis firm Wolfe Research initiated coverage of the stock with an “outperform” rating. The firm said Quanta has a strong position in the electric and gas utilities, renewable energy, and other energy sectors. That leads analysts to believe Quanta is poised to benefit from numerous trends, such as meeting the power demand from data centers, transitioning to alternative energy sources, and mitigating climate risk.

Deckers Outdoor (DECK), parent company of the Ugg and Hoka footwear brands, announced a six-for-one stock split at its annual meeting earlier this month, and the split-adjusted shares began trading this Tuesday. The stock has been volatile since the split went into effect, and a decline of 3.3% made Deckers Outdoor the weakest-performing stock in the S&P 500 on Thursday.

Shares of Ventas (VTR), a real estate investment trust (REIT) focused on health care facilities, dropped 3.1%. Earlier this week, Ventas announced an agreement with Kindred Healthcare and its parent ScionHealth to purchase five long-term acute care (LTAC) facilities while extending its leases on 23 additional facilities into 2025.

Arthur J. Gallagher & Co. (AJG) stock also lost 3.1% on the day. Thursday’s downturn represents a retreat from record-high levels, as shares of the insurance and risk management firm crossed the $300 threshold in intraday trading for the first time in history earlier this week.

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Index Posted Seven Consecutive Winning Trading Sessions Ahead of Rate Decision

Key Takeaways

• The S&P 500 will remain in focus on Thursday after the index closed slightly lower following the Federal Reserve’s decision to slash its benchmark rate by 50 basis points.
• Since establishing a record high in mid-July, the index has oscillated within a symmetrical triangle, a chart pattern that typically precedes a breakout in price. 
• Investors should monitor important downside targets on the S&P 500’s chart at 5,265 and 4,950, while eyeing 6,300 as a potential upside target.

The S&P 500 (SPX) will remain in focus on Thursday after the index staged an intraday reversal to close slightly lower today. This move followed the Federal Reserve’s decision to slash its benchmark fed funds rate by 50 basis points, marking the first rate cut since March 2020. 

Prior to Fed’s rate decision, the index had posted seven consecutive winning trading sessions as investors started pricing in the possibility of a more aggressive half-point cut after economic data over the past month signaled a softening labor market and cooling inflation.

Below, we’ll take a closer look at the S&P 500’s chart and use technical analysis to point out key levels worth watching out for.

Symmetrical Triangle Takes Shape

Since establishing a record high in mid-July, the S&P 500 has oscillated within an orderly symmetrical triangle, a chart pattern formed by trend lines connecting a series of sequentially lower peaks and higher troughs that typically precedes a breakout in price. 

However, Wednesday’s intraday reversal created a bearish shooting star near the triangle’s top trendline. A shooting star is a candlestick pattern that forms when a security or index rises significantly, but eventually gives up those gains to close near the day’s open.

The S&P 500 closed 0.29% lower at 5,618.26 Wednesday.

Given those mixed signals, investors should monitor several important chart levels.

S&P 500 Downside Targets to Monitor

The first lower level to eye if a downside breakout takes place sits around 5,265. This location on the chart may provide support near a trendline that connects the March highs with comparable trading levels in May and early August. Depending on the timing of the move, this area may also closely align with the rising 200-day moving average.

A deeper retracement could see the index fall to the 4,950 level, a region that investors may perceive as a value buying area near a horizontal line linking a range of price bars throughout January and February with the prominent April swing low. Such a move would represent a correction of about 12% from Wednesday’s close.

S&P 500 Upside Target to Watch

Given the index trades near its all-time high (ATH), we can also forecast an upside target by using the measuring principle, also known as the measured move technique. 

To do this, we calculate the distance of the symmetrical triangle near its widest point and apply that amount to the pattern’s top trendline. For instance, here we add 650 to 5,650, which projects an upside target of 6,300.

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 ended 0.3% lower on Wednesday, Sept. 18, as the Federal Reserve announced its first interest-rate cut since March 2020.
• ResMed shares tumbled after analysts said the likely label expansion of popular weight-loss drugs to treat sleep apnea could hurt demand for the company’s devices.
• General Motors stock increased as the carmaker introduced adapters allowing drivers to power up GM EVs using Tesla’s charging station network.

Major U.S. equities indexes ended lower on Wednesday after the Federal Reserve reduced its benchmark interest rate by half a percentage point. Central bank policymakers opted for an aggressive rate cut as the focus shifts toward economic growth and the employment market following a multi-year campaign to fight inflation.

After fluctuating in the morning and jumping higher in the immediate aftermath of the Fed’s announcement, the S&P 500, Nasdaq, and Dow turned negative in the afternoon. All three indexes closed with daily losses of roughly 0.3%.

Shares of medical device maker ResMed (RMD) dropped 5.1%, the steepest decline of any S&P 500 constituent after the investment analysis firm Wolfe Research downgraded the stock to “underperform.” With the Food and Drug Administration (FDA) likely to approve Eli Lilly’s (LLY) blockbuster weight-loss drug Zepbound for the treatment of sleep apnea, analysts expect a disruption in demand for ResMed’s devices that treat the condition. Wolfe pointed to a survey showing that half of doctors expect to prescribe fewer sleep apnea devices as patients gain access to Zepbound and other GLP-1 medications.

Shares of Avery Dennison (AVY), which provides labeling and packaging solutions as well as radiofrequency identification (RFID) tags for various markets, fell 4.9% as the company hosted its 2024 Investor Day. While the company expects the key mega-trends of digitization, sustainability, and personalization to underpin demand for its intelligent labels and other products, Avery Dennison remains sensitive to the availability and pricing of raw materials. Inventory destocking has also weighed on the company’s performance, although the issue has shown signs of improving in 2024.

Addressing a conference on the consumer and retail markets, the chief executive officer (CEO) of wholesale food distributor Sysco (SYY) said global restaurant industry traffic was down around 3% in the recent quarter and is softening further in the current quarter. Although the executive stressed that the company remains confident in its full-year guidance, Sysco shares slid 4.2% on Wednesday.

West Pharmaceutical Services (WST) shares notched the top performance in the S&P 500 on Wednesday, jumping 4.5%. In its most recent earnings report, released in July, the supplier of packaging and delivery solutions for injectable drugs reduced its full-year sales and profit outlook, noting reduced demand from biotech customers as they work through existing inventories. However, the company did predict a potential return to organic revenue growth in the fourth quarter, suggesting the destocking headwinds could abate.

Shares of the discount retailer Dollar Tree (DLTR) added 3.0% on the day. The stock has been under pressure in 2024 as the company navigates a restrained consumer spending environment and considers strategic options for its struggling Family Dollar segment. However, a Wednesday report in The Wall Street Journal highlighted how Dollar Tree and fellow dollar-store chain Dollar General (DG) are pursuing aggressive store-opening targets despite the challenging environment, reflecting confidence that new locations can drive sales growth and market share gains.

General Motors (GM) shares gained 2.4% after the carmaker said it will offer adapters that allow owners of its electric vehicles (EVs) to access the network of charging stations operated by Tesla (TSLA). Drivers of GM EVs will be able to purchase an adapter for $225 through the carmaker’s mobile apps. In other positive news for GM, the company struck a tentative deal with workers at an EV and battery plant in Ontario, Canada, reducing the chance of a work stoppage at the facility.

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Key Takeaways

• General Mills saw sales and profits drop from the same time last year as lower prices and higher costs weighed on the breakfast and snack food maker’s margins.
• The company affirmed its outlook for the full fiscal year, noting that customers face a “uncertain macroeconomic backdrop.”
• Last week, the company announced plans to sell its U.S. and Canadian yogurt businesses including brands like Yoplait to a pair of French dairy companies.

General Mills (GIS) reported sales and profits dropped in its fiscal first quarter from the same time last year as lower prices and higher costs weighed on the breakfast and snack food giant’s margins.

Total revenue for the quarter came in at $4.85 billion, just above analyst estimates but down 1% from the same time last year. Net income of $579.9 million fell from $673.5 million a year ago, and missed analyst estimates compiled by Visible Alpha.

The company credited an “unfavorable net price realization and mix” for the decline in sales. The company’s sales volume decreased in North America, while international sales volume rose but was partially offset by lower prices.

General Mills Affirms Outlook Amid ‘Uncertain Macroeconomic Backdrop’

The company behind dozens of brands including Cheerios, Pillsbury, and Blue Buffalo pet food affirmed its outlook for fiscal 2025, projecting organic net sales flat to up 1%, while adjusted earnings per share (EPS) is projected to be within a range of up or down by 1% compared to fiscal 2024. The company said it expects sales volume to improve over the course of the year, though customers face an “uncertain macroeconomic backdrop.”

General Mills’ outlook didn’t include the impact of last week’s announcement that it plans to sell its yogurt business including brands like Yoplait and Go-Gurt to Lactalis and Sodiaal, a pair of French dairy companies, for a combined $2.1 billion. Lactalis will acquire the U.S. operations, while Sodiaal will buy the company’s Canadian yogurt operations, including manufacturing facilities in Tennessee, Michigan, and Quebec.

General Mills shares were little changed in early trading Wednesday, and have gained close to 15% since the start of the year.

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