S&P 500 Gains and Losses Today: Export Cap, ASML Sales Worries Weigh on Chip Stocks

Key Takeaways

• The S&P 500 fell 0.8% on Tuesday, Oct. 15, 2024, as semiconductor stocks tumbled, weighing on the index. 
• Shares of semiconductor equipment makers KLA, Applied Materials, and Lam Research led losses after weak results from peer ASML, reports of potential U.S. export restrictions, and price target cuts by Raymond James analysts.
• Walgreens shares surged as the pharmacy giant beat quarterly estimates and laid out a plan to turn around its business.

Major U.S. equities indexes moved lower Tuesday as semiconductor stocks tumbled. Both the S&P 500 and the Dow fell roughly 0.8% on Tuesday, retreating from record closes posted in the previous session. The Nasdaq dropped 1%.

Semiconductor stocks came under pressure after semiconductor equipment maker ASML (ASML) accidentally released its earnings report a day earlier than expected, revealing lower-than-expected net bookings and a lackluster sales guidance. ASML shares plunged 16.3%.

ASML’s results, as well as a report on potential U.S. export restrictions, weighed on companies across the semiconductor industry, with heavy pressure on shares of fellow semiconductor equipment manufacturers. KLA (KLAC) shares dropped 14.7%, the steepest drop of any S&P 500 stock, while shares of Applied Materials (AMAT) and Lam Research (LRCX) were down 10.9% and 10.7%, respectively. Raymond James trimmed its price targets for all three stocks, as well as ASML.

Shares of solar technology firm Enphase Energy (ENPH) sank 9.3% after RBC Capital Markets downgraded the stock to “sector perform.” Analysts said tough industry competition could weigh on Enphase’s growth rate.

Walgreens Boots Alliance (WBA) shares surged 15.8%, marking the top performance in the S&P 500, after the pharmacy giant reported better-than-expected sales and profits for its fiscal fourth quarter. The drugstore and health care chain also announced a turnaround plan that includes closing around 1,200 stores over the next three years.

Crude oil prices moved lower following some signs of easing geopolitical tensions and as the International Energy Agency cut its projection for oil demand growth. The prospect of lower fuel costs helped boost shares of cruise operators. Carnival (CCL) shares sailed 6.6% higher, while shares of Norwegian Cruise Line Holdings (NCLH) were up 4.1%.

Charles Schwab (SCHW) shares jumped 6.1% after the brokerage firm posted its results for the third quarter, exceeding revenue and earnings per share (EPS) forecasts. Year-over-year increases in total client assets and the number of active brokerage accounts helped drive the strong performance.

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