Important points
Major U.S. stock indexes were mixed and little changed, capping a trading week that saw several key economic indicators released. Despite signs of persistent inflation, traders widely expect another rate cut at the Federal Reserve’s final policy meeting of 2024 next week.
The S&P 500 ended Friday’s trading flat, while the Dow fell 0.2% and the Nasdaq rose 0.1%.
Broadcom (AVGO) stock soars 24.4% to an all-time high, pushing the company’s market cap to the $1 trillion mark after the semiconductor maker beat expectations for revenue and profit in its fourth quarter results. exceeded. The company announced that its artificial intelligence (AI) sales will more than triple in fiscal 2024 compared to the same period last year, and several analysts have raised their price targets for the company’s stock due to the growth in AI sales. Friday’s gains made Broadcom the top daily performer in the S&P 500.
Shares of Lamb Weston (LW), a maker of frozen French fries and other potato products, rose 6.8% on reports of acquisition talks with Post Holdings (POST), the packaged goods giant known for its breakfast cereals. Lamb Weston is reportedly under pressure from activist investors to consider options to sell the company.
Walgreens Boots Alliance (WBA) stock also rose 6.8%. Shares soared earlier in the week after reports that the drugstore operator was considering a possible sale to private equity firm Sycamore Partners, but they regained some of those gains on Friday. We regained our momentum.
Arista Networks (ANET) stock rose 5.1% to a record high. Citi analysts suggested networking equipment providers could be the main beneficiaries of the AI demand boom, citing demand for data center switches. Arista recently completed a 4-for-1 stock split on December 4th.
Nucor (NUE) shares fell nearly 4.7%, extending losses posted in the previous session after UBS downgraded the stock from “buy” to “neutral.” Expectations for protectionist trade policies under the next administration helped fuel the rally in steel stocks after the U.S. presidential election, but analysts said the gains made the risk-reward outlook less favorable.
Shares of server maker Super Microcomputer (SMCI) fell 3.9%. The decline came as concerns grew over the possibility of the company’s stock being removed from the Nasdaq 100. Supermicro shares have been volatile since the company delayed its annual regulatory filing amid questions about its accounting practices and the resignation of its auditor.
