Dow Closes at Record High; S&P 500, Nasdaq Slip as Chip Stocks Tumble

Generac Gains as Helene Causes Power Outages

1 hr 4 min ago

Generac Holdings (GNRC), a producer of home generators and other emergency power solutions, has seen its shares gain as Hurricane Helene made landfall in the southeastern U.S.

“You are seeing people taking the situation into their own hands, whether it is backing up their own homes or business or doing something to produce their own power,” Generac CEO Aaron Jagdfeld said in an interview with Bloomberg last week.

Hurricane Helene made landfall in Florida Thursday as a Category 4 storm and has since weakened to a tropical storm moving into Georgia and South Carolina. More than 4 million homes and businesses were without power Friday morning in the southeastern U.S., according to the tracking site poweroutage.us.

Generac’s stock price rose close to 2% Friday, and nearly 10% this week. With this week’s gains, shares have climbed about 20% for the year so far.

In July, Generac had raised its full-year 2024 net sales guidance “[a]s a result of recent power outage activity, which includes the impact of major outage event Hurricane Beryl.” Generac shares rose 12% during the nearly two weeks of Hurricane Beryl’s impact.

–Andrew Kessel

Casino Stocks Continue Gaining on China Stimulus Optimism

1 hr 22 min ago

Shares of Wynn Resorts (WYNN), Las Vegas Sands (LVS), and MGM Resorts International (MGM) gained again Friday on optimism that the big stimulus package announced by China will increase business at their casinos in Macau. 

All three have posted strong gains this week from the moves from Beijing designed to push the country’s 2024 economic growth closer to its 5% target.

Wynn Resorts shares received an added boost from Morgan Stanley, which upgraded the stock on what it called a “favorable risk-reward.” The bank raised its rating to “overweight” from “equal-weight,” and lifted the price target $7 to $104.

Morgan Stanley pointed to a “combination of near low valuation, an underappreciated growth opportunity in UAE, and optionality around Macau.”

With this week’s advance for the casino operators, Wynn Resorts and Las Vegas Sands shares moved positive territory for 2024. MGM Resorts International is still down 11% for the year.

–Bill McColl

Key Levels to Watch on MSCI China ETF After Big Gains

3 hr 7 min ago

The iShares MSCI China ETF (MCHI) was up again Friday and has gained nearly 20% this week, bolstered by Beijing’s announcements in recent days of significant stimulus measures to revive the country’s economy.

After forming two distinct lows at comparable levels on the chart between October 2022 and January this year, the fund’s price broke above a multi-year downtrend line in late April, raising the prospect of a double bottom.

Investors should monitor key overhead levels on the ETF’s chart around $56, $65, and $77, while eyeing the $47 area during pullbacks.

Read the full technical analysis piece here.

–Timothy Smith

Key Takeaways from Costco’s Earnings Call

4 hr 49 min ago

Costco shares were down nearly 2% in afternoon trading after reporting results late Thursday that showed revenue came in lighter than expected.

Speaking during a conference call after the release of the earnings report, executives updated investors about the retailer’s first membership fee hike in seven years, its international growth plans, the state of consumer spending, and more.

Read the full story here.

–Aaron McDade

Bristol Myers Squibb Rises on Schizophrenia Drug Approval

7 hr 20 min ago

Shares of Bristol Myers Squibb (BMY) rose Friday, a day after the Food and Drug Administration (FDA) approved the use of what the pharmaceutical firm called the first treatment for schizophrenia in decades.

CEO Chris Boerner said regulatory approval of Cobenfy “marks an important milestone for the community, where after more than 30 years, there is now an entirely new pharmacological approach for schizophrenia—one that has the potential to change the treatment paradigm.”

Dr. Rishi Kakar, an investigator in the clinical studies of the drug, called approval “a transformative moment” in the treatment of the illness because, historically, medicines have targeted the same primary pathways in the brain, and Cobenfy offers sufferers “a new option.”

Bristol Myers Squibb Shares were up about 2% in recent trading.

–Bill McColl

Futures Tied to Major Indexes Inch Higher

9 hr 45 min ago

Futures tied to the Dow Jones were up less than 0.1%.

S&P 500 futures were also up fractionally, as the index looks to add to record highs.

Nasdaq 100 futures were up also up less than 0.1%.