Dow Jones Today: Stocks Close Mixed Ahead of Thursday Break, Jobs Report on Friday;
AMD Slides After Double Downgrade from HSBC
4 minutes ago
Advanced Micro Devices (AMD) shares tumbled Wednesday after HSBC analysts gave the stock a double downgrade, citing concerns about the chipmaker’s artificial intelligence (AI) revenue.
HSBC dropped AMD’s rating two levels, to “reduce” from “buy,” and lowered its price target to $110 from $200.
The stock fell 4.3% to finish at $121.84. The AI chip company’s shares have lost about 30% of their value over the past three months, while the S&P 500 has gained nearly 3% over that stretch.
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The analysts called AMD’s AI chip roadmap “less competitive” than previously anticipated, pointing to soft demand for its MI325 graphics processing unit (GPU). A new MI350 chip is expected from AMD later this year, but the analysts added it could struggle to compete with AI chipmaking titan Nvidia’s (NVDA) offerings.
HSBC lowered its fiscal 2025 AI GPU revenue forecast for AMD to $8.1 billion from $12.3 billion, well below the $9.5 billion analyst consensus. AMD is expected to report 2024 fourth-quarter earnings in late January or early February, based on the timing of its results last year.
Quantum Computing Stocks Sink After Nvidia CEO Comments
1 hr 7 min ago
Several stocks across the quantum computing industry, including Rigetti Computing (RGTI), D-Wave Quantum (QBTS), IonQ (IONQ), and Quantum Computing (QUBT), fell sharply Wednesday following comments from Nvidia (NVDA) CEO Jensen Huang about the technology.
Huang said at an analyst event Tuesday that “very useful quantum computers,” which could make a number of computing tasks more efficient, are likely 15 to 30 years away.
“If you kind of said 15 years for very useful quantum computers, that would probably be on the early side,” Huang said. “If you said, you know, 30, it’s probably on the late side. But if you picked 20, I think a whole bunch of us would believe it.”
Artur Widak / NurPhoto / Getty Images
Huang also said Nvidia is an ideal partner for quantum computing companies because “it turns out that you need a classical computer to do error correction with the quantum computer, and that classical computer better be the fastest computer that humanity can build, and that happens to be us.”
D-Wave Quantum was down 37% late Wednesday afternoon, while Rigetti, IonQ, and Quantum all declined around 40%. The Defiance Quantum (QTUM) exchange-traded fund (ETF), made up of the listed companies along with other chip and tech companies like Nvidia, was down nearly 5%.
Those stocks ended 2024 on a substantial bull run after Google parent Alphabet (GOOGL) last month revealed a quantum computing chip called Willow that the tech giant said had made significant breakthroughs.
Edison International Stock Plunges as LA Fires Cause Power Shutoffs
1 hr 48 min ago
Shares of Edison International (EIX) plunged Wednesday as its Southern California Edison subsidiary was forced to shut off power to nearly 70,000 customers because of the Los Angeles-area wildfires.
At least two people have died because of the blazes, and the Los Angeles Fire Department said that the winds associated with the Palisades Fire “are forecasted to remain extreme today and all residents are asked to follow evacuation orders.”
According to Southern California Edison’s website recently on Wednesday, there currently are 107 power outages and 69,601 customers affected.
“This is the third time in as many months that strong Santa Ana winds have prompted Southern California Edison to cut power to its customers,” the Los Angeles Times reported.
Edison International shares were down nearly 13% in recent trading, leading S&P 500 decliners. With Wednesday’s sharp declines, shares of Edison International have fallen into negative territory over the past year.
Novo Nordisk Rises as UBS Upgrades Stock to ‘Buy’
2 hr 26 min ago
Novo Nordisk (NVO) shares rose Wednesday after analysts from UBS Research upgraded the Danish drugmaker’s stock to “buy” from “neutral,” calling the recent sell-off of the stock “overdone.”
UBS analysts upgraded the stock but lowered their price target for the company’s domestic shares, listed in Copenhagen, to 750 Danish kroner ($103.55) from 1,100 kroner. The stock closed at 619.50 kroner at home Wednesday, about 40% below its June 25, 2024, record close of 1,028 kroner.
The UBS analysts said that decline provides “an attractive entry point,” as they expect the weight-loss drug market to pick up in the first quarter of this year. Novo Nordisk is a leader in that market with its Ozempic and Wegovy drugs, along with its main competitor, Eli Lilly (LLY), and its Mounjaro and Zepbound.
Shares of Novo Nordisk fell nearly 18% in one day last month after results of a trial for its newest weight-loss drug disappointed. The analysts called the trial results “undoubtedly disappointing,” but said the drug still looks to be a more effective weight-loss treatment than Ozempic that could “still show differentiation” in treating other diseases like type 2 diabetes in future trials.
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Under its new price target, the analysts said they are projecting “risk adjusted peak sales” of $75 billion annually to 2031, rather than $80 billion previously. The sales projection was lowered because of the upcoming expiration of patents for Novo Nordisk’s drugs in 2031 in Europe and 2032 in the U.S., which they expect will lead to lower sales, along with the recent weak trial results.
Novo Nordisk’s Copenhagen-listed shares closed up roughly 2.8% Wednesday, while its U.S.-listed shares recently were up more than 2%.
ExxonMobil Says Lower Oil Prices Will Hit Q4 Results
4 hr 32 min ago
ExxonMobil (XOM) said it expects to take an up to a $900 million hit to its upstream earnings in the fourth quarter versus the previous three months amid falling oil prices.
Lower liquids prices are set to bring down its upstream earnings by between $500 million to $900 million in the fourth quarter of 2024 compared with the third quarter, the oil giant said in a filing with the Securities and Exchange Commission (SEC).
The forecasted earnings hit follows the oil company’s announcement last month that it is doubling down on its commitment to pumping more oil and gas. The long-term plan focuses on taking advantage of its nearly $60 billion purchase of Pioneer Natural Resources last year, it said.
ExxonMobil’s forecast is also happening at a time when demand for oil is soft and there is an oversupply of the commodity. Last month, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) announced they will keep voluntary production cuts of 2.2 million barrels per day (B/D) in place until the end of March.
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ExxonMobil shares were down 1.4% in recent trading. The stock has fallen 12% over the past three months.
Instacart Rises on News of S&P MidCap 400 Inclusion
5 hr 30 min ago
Shares of Instacart rose Wednesday on the news that the food-delivery stock will join a new index.
Instacart’s stock was recently up about 5%. The rise followed the announcement late yesterday that the company, also known as Maplebear (CART), will join the S&P MidCap 400 index starting with next Tuesday’s session, replacing Enovis (ENOV).
Shares of Instacart are have nearly doubled over the past 12 months.
Instacart separately said Wednesday that it would partner with Ulta Beauty (ULTA) to deliver the latter company’s beauty products nationwide.
Ulta’s shares were recently down more than 3%; the company recently said its CEO would retire.
Enovis will move to the SmallCap 600 index, replacing Arch Resources (ARCH), which is soon expected to be acquired by Consol Energy (CEIX) and create Core Natural Resources.
Shares of Enovis were up more than 1% in morning trading.
Palantir Levels to Watch as Stock Continues Sliding
6 hr 31 min ago
Shares in Palantir Technologies (PLTR) were down again Wednesday after falling sharply yesterday, as the stock continues to retreat from its record high set in late December.
Recent selling in the shares comes after investment bank Morgan Stanley initiated coverage on the stock earlier this week with an “underweight” rating and reports surfaced that Cathie Wood’s ARK Investment Management tech funds had sold shares in the company.
The analytics software provider had a stellar 2024, ending the year as the S&P 500’s best performing stock. Its shares more than quadrupled, boosted by growing demand for its suit of AI software products.
Palantir shares were down 3% at around $68 in recent trading, after falling nearly 8% on Tuesday. The stock is down 20% from its Dec. 24 all-time high.
The stock broke down from a rising wedge in late December and has recently found renewed selling pressure on a retest of the pattern’s lower trendline.
Investors should watch crucial support levels on Palantir’s chart around $66. $59, and $45, while also monitoring a major resistance area near $81.
Read the full technical analysis piece here.
Major Index Futures Fluctuate Near Unchanged
7 hr 35 min ago
Futures tied to the Dow Jones Industrial Average were down fractionally.
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S&P 500 futures slipped 0.1%.
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Nasdaq 100 futures were also off 0.1%.
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This article was originally published by a www.investopedia.com . Read the Original article here. .