The stock market has reversed Monday's decline. The S&P 500 is up 0.3% and the tech-heavy Nasdaq Composite is up 0.6%. The Dow Jones Industrial Average is down 0.2% and the Russell 2000 Index is down 0.9%.
Chipmakers are higher in midday trading. Nividia is up 5% and leading the S&P 500. Micron is up 2.3%. AMD is up 2.3%.
Investors are awaiting inflation data for July: the producer price index (PPI) will be released on Tuesday and the consumer price index (CPI) on Wednesday.
Top S&P 500 stocks on the move today
Five S&P 500 stocks that are seeing big moves in the midday trading session are:
- Key Corporation (KEY) +9.5%
- Super Micro Computer Inc (CISM) +7.3%
- NVIDIA Corporation (NVDA) +4.9%
- Insulet Corporation (PODCAST) +3.9%
- First Solar Inc. (FSLR) +3.5%
The five worst-performing and biggest decliners in the S&P 500 as of midday are:
- Albemarle Corporation (DAWN) -7.8%
- Warner Bros Discovery Inc (WBD) -4.1%
- Simon Inc. Real Estate Group (AAP) -3.9%
- Solventum Corporation (SOLV) -3.7%
- Moderna Inc (mRNA) -3.2%
Other stocks worth noting with significant moves include:
- Starbucks (SEX) +2.7%
- Walmart (WMT) +1.5%
- Tesla (TSLA) -1.3%
- Target platforms (GOAL) -0.4%
- JetBlue Airlines (JBLU) -18.4%
KeyCorp launches Scotiabank investment
KeyCorp shares rose 10% following an investment announcement from the Bank of Nova Scotia (Scotiabank).
Scotiabank agreed to buy 14.9% of KeyCorp’s common stock in cash for $2.8 billion. KeyCorp is a regional bank based in Cleveland. U.S. regional banks suffered in 2023 as higher interest rates reduced the value of their bond holdings and caused some depositors to withdraw their funds.
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Scotiabank is a Canadian multinational banking and financial services company headquartered in Toronto.
“The investment enables Key to accelerate our well-reported earnings and capital improvement while strengthening our strategic position,” KeyCorp CEO Chris Gorman said in a press release. “This transaction creates further growth capacity by enabling additional investments at a targeted scale across our franchise and increases Key's strategic agility as we navigate an uncertain environment.”
Starbucks shares rise after hedge fund buys stake
Starbucks rose 2.7% after New York-based activist investor Starboard Value acquired a stake, the Wall Street Journal reported.
The Journal also reported that Jeff Smith's Starboard is advising Starbucks to take steps to boost its stock price.
Related: Starbucks Makes Major Announcement About New Fall Flavor Launches
Two weeks ago, the coffee giant reported quarterly earnings that missed analysts' expectations. Fiscal third-quarter revenue came in at $9.11 billion, below forecasts of $9.24 billion. The company earned 93 cents per share, matching expectations.
JetBlue plunges after Moody's rating downgrade
S&P and Moody's downgraded JetBlue's ratings after it announced plans to raise more than $3 billion in debt. JetBlue shares fell 18% in midday trading.
S&P expects JetBlue's operating environment to remain challenging over the next year or two, while Moody's said it would take “several years” to raise operating profit and cash flow to levels that would improve its credit metrics.
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JetBlue also today revealed plans to sell $400 million in five-year convertible bonds.
For the quarter ending June 2024, JetBlue reported revenue of $2.43 billion, beating the $2.4 billion estimate but down 7% from a year ago. The company earned 8 cents per share, compared with 45 cents in the year-ago quarter.
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