Biggest S&P 500 Movers on Monday
2 hr 31 min ago
Advancers
- UnitedHealth Group (UNH) stock jumped 8.2%, marking the top daily performance in the S&P 500. While Monday’s move higher extended a recovery that began late last week, shares of the insurance giant had been under heavy pressure after reports of a Justice Department investigation into possible Medicare fraud compounded news about the departure of UnitedHealth’s top executive and suspension of its guidance. As the stock rebounded, filings showed that incoming CEO Stephen Hemsley purchased a significant stake in the company.
- The Food and Drug Administration granted full approval for the protein-based COVID-19 vaccine produced by Novavax (NVAX), and shares of the biotech firm surged 15%. Shares of fellow vaccine maker Moderna (MRNA) were up 6.2%.
- Dollar General (DG) shares advanced 4.9%, adding to gains posted at the end of last week after Walmart (WMT) discussed tariff-related price increases on its earnings call. Analysts have highlighted that Dollar General has limited tariff exposure compared with some of its rivals in discount retail.
Decliners
- Shares of several solar energy companies moved lower after Republican leaders in the House reportedly committed to eliminating certain clean energy tax credits earlier than anticipated. An initial budget proposal from the House Ways and Means Committee released last week included plans to roll back many provisions of the Inflation Reduction Act, including tax credits for residential solar installations. Shares of panel manufacturer First Solar (FSLR) sank 7.6%, losing the most of any S&P 500 stock, while shares of solar equipment maker Enphase Energy (ENPH) lost 3.2%.
- The uncertain policy outlook pressured other stocks in the renewable energy space. Shares of power generator AES Corp. (AES), whose portfolio includes solar, wind, hydro, and energy storage projects, fell 4.1%.
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- Best Buy (BBY) shares sank 3% after Wells Fargo trimmed its price target on the electronics retailer’s stock. Although analysts noted the potential for customers to pull forward their purchases in anticipation of tariff impacts, they remain cautious of significant uncertainties and risks in the market.
The Two Words That Sum Up First-Quarter Earnings
2 hr 54 min ago
First-quarter earnings season is winding down this week. Most market watchers would agree that one issue has loomed large over this round of results.
Of the 451 companies in the S&P 500 that hosted earnings calls between March 15 and May 15, 381—or 84%—have mentioned “uncertainty,” according to a recent analysis from FactSet Research.
The only other time in the last 10 years that more executives have discussed uncertainty was during the depths of Covid-19 lockdowns in the first quarter of 2020, when 393 did so.
President Donald Trump trade policy has been a big reason for the unease: “Tariff” has been mentioned on 91% of earnings calls in the last two months, more than any other quarter in the last decade, according to a separate FactSet report published Friday.
The effects of trade policy, however, are yet to to be seen, Deutsche Bank analysts noted Monday, as most U.S. companies didn’t see much tariff impact in the first quarter. “In many cases, it was too early to see a direct impact and trends which had been in place previously largely continued,” they wrote.
That’s one reason first-quarter earnings have handily exceeded expectations. The S&P 500 is on track to post a second consecutive quarter of double-digit earnings growth.
The Trump administration’s decision to pause nearly all of the tariffs announced in early April could mean “tariffs” and “uncertainty” continue to dominate the conversation in the next round of earnings calls starting in July. Investors and executives are hoping that bilateral deals like the one struck earlier this month with the U.K. will provide some clarity.
Quantum Computing Stock Price Levels to Watch
3 hr 31 min ago
Quantum Computing (QUBT) shares tumbled Monday after jumping 50% last week when the photonic and quantum optics provider flagged progress at its planned quantum chip foundry.
CEO Yuping Huang said last Thursday the company had completed construction of its Arizona-based foundry, a factory that will process the materials used in the photonic chips that power specific quantum machines. The firm also said it had secured its fifth purchase order and deepened its engagement with both government and commercial partners. The company also announced it swung to a profit in the first quarter on benefits from an earlier acquisition and growing demand for its photonic semiconductors.
Quantum Computing shares fell 8.1% to close Monday’s session at $11.83. Still, the stock has doubled from last-month’s low and has gained more than 1,000% over the past month as investors bet that the company’s chips will power quantum technology helping to revolutionize industries like cybersecurity, finance, and healthcare.
After breaking above a falling wedge pattern in mid-March, Quantum Computing shares consolidated before resuming their uptrend in late April.
More recently, the stock broke out above a pennant pattern in Friday’s trading session, signaling a continuation move higher. Importantly, the buying occurred on the highest daily volume since mid-January, indicating that larger market players participated in the rally. Meanwhile, the relative strength index confirms bullish momentum, but also flashes overbought conditions, which could lead to short-term volatility.
Investors should watch crucial overhead areas on Quantum Computing’s chart around $20 and $27, while also monitoring major support levels near $9 and $6.
Read the full technical analysis piece here.
Jamie Dimon Says JPMorgan Will Allow Crypto Trading
4 hr 7 min ago
JPMorgan Chase (JPM) CEO Jamie Dimon, known to be a cryptocurrency skeptic, said the bank will allow clients to buy bitcoin—though he’s not crazy about it himself.
“Personally, when I look at the bitcoin universe … there’s the sex trafficking, the terrorism, I am not a fan of it,” Dimon said at the bank’s annual investor day Monday, according to a transcript provided by AlphaSense, alluding to the occasional use of cryptocurrency to fund illicit activities.
Michel Euler / Pool / AFP / Getty Images
Still, Dimon said: “We’re going to allow you to buy it. And we are not going to custody it. We’re going to put it in statements for clients.”
JPMorgan’s rival Morgan Stanley (MS) has allowed its wealth advisors to pitch spot bitcoin ETFs since August, CNBC reported. Earlier this month, Bloomberg reported that Morgan Stanley was looking to bring cryptocurrency trading to clients through its E*Trade platform.
Although JPMorgan now apparently will also be allowing clients to trade bitcoin, Dimon is still is not a fan of the largest cryptocurrency.
“I don’t think you should smoke, but I defend your right to smoke,” Dimon said. “I defend your right to buy bitcoin. Go at it.”
TXNM Energy Hits Record High on $11.5B Blackstone Deal
4 hr 33 min ago
Shares of TXNM Energy (TXNM) traded at an all-time high Monday when the power provider for New Mexico and Texas agreed to be purchased by the infrastructure unit of Blackstone (BX) for $11.5 billion in cash and debt.
The deal has Blackstone Infrastructure paying TXNM investors $61.25 for each share they own, a nearly 16% premium to the closing price on Friday. To support TXNM’s growth, Blackstone Infrastructure will spend $400 million to acquire 8 million newly issued shares of TXNM common stock at $50 each through a private placement agreement, and TXNM is to match that amount before the close of the transaction, which is expected in the second half of 2026.
As part of the acquisition, TXNM Executive Chair Pat Collawn will step down, and current Chair and CEO Don Tarry will oversee operations as President and CEO.
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TXNM Energy shares were up nearly 7% at $56.50 in late trading Monday, after hitting a record high of $57.29 early in the session.
What Analysts Think of Home Depot, Lowe’s Ahead of Earnings
6 hr 10 min ago
Home Depot (HD) and rival Lowe’s (LOW) are scheduled to report quarterly financial results on Tuesday and Wednesday, respectively, with analysts largely bullish on both home improvement retailers’ stocks.
Of the 13 analysts covering Home Depot tracked by Visible Alpha, 11 have issued “buy” or equivalent ratings, while two have neutral ratings. Meanwhile, 10 out of 15 analysts covering Lowe’s call it a “buy,” with five “hold” ratings. The mean price targets for both stocks—at $436 for Home Depot and $270 for Lowe’s—would suggest roughly 15% upside from Friday’s closing levels.
First-quarter sales for Home Depot are expected to rise 8% year-over-year to $39.26 billion, while Lowe’s revenue is projected to drop 2% to $20.95 billion. Adjusted earnings per share are expected to decline for both retailers—to $3.56 and $2.87, respectively.
Ahead of the reports, analysts from UBS said that while they are not “expecting any real earth-shattering news” from the first-quarter results, they like the stocks for several reasons. The analysts pointed to relatively stable demand despite tariff uncertainty, with room for improvement later this year if the housing market turns around.
Morgan Stanley analysts echoed the comments, and called the retailers “high quality bellwethers.” They expect both retailers to hold their previous full-year forecasts steady, but noted that they could introduce broader ranges to reflect the uncertainty, as some other companies have done this earnings season.
JPMorgan analysts recently trimmed their price targets for Home Depot and Lowe’s to $410 and $263, respectively, from $470 and $300 previously. They lowered their comparable sales projections for the first quarter as the analysts said they believe tariff-fueled uncertainty “is having an effect on bigger ticket spending,” a category Lowe’s and Home Depot struggled with last year as squeezed consumers avoided big purchases.
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Home Depot shares were down slightly at around $380 in mid-afternoon trading Monday, while Lowe’s shares inched higher to about $235.
Wall Street Largely Shake Off Credit Rating Downgrade Worries
7 hr 35 min ago
U.S. stocks pared early losses Monday as investors largely shook off concerns about the U.S. government’s growing debt problem.
Monday morning’s dip came after Moody’s Ratings on Friday downgraded U.S. debt to AA1 from AAA, the highest possible rating. Moody’s is the last of the major credit agencies to lower its rating of U.S. Treasurys; Standard and Poor’s and Fitch did so in 2011 and 2023, respectively.
Moody’s cited “persistent, large fiscal deficits” for its downgrade. “We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration,” the agency wrote, referring to the tax and spending bill making its way through Congress. The U.S.’s financial health is likely to deteriorate as the government’s debt and interest burden increase.
“The Moody’s downgrade of US debt doesn’t tell investors anything they don’t already know about the US’s fiscal woes,” wrote Bank of America analysts in a note on Monday. BofA analysts don’t expect the downgrade to have much of a direct impact on the Treasury market since it won’t exclude U.S. debt from major fixed-income indexes.
Oppenheimer analysts on Monday also noted the downgrade was unlikely to sting either the Treasury or stock market. Earlier downgrades from S&P and Fitch stirred up angst on Wall Street, but ultimately didn’t cause material damage to debt markets due to America’s “depth and breadth in accountability as well as comparative high levels of transparency in governance.”
Oppenheimer analysts remain optimistic about the stock market’s outlook, and note “any near-term retracement on nervousness around the rating downgrade may be overstated.” They recommend “looking for ‘babies that get thrown out with the bathwater’ rather than broadly ‘buying the dips,’” considering elevated uncertainty.
JPMorgan Downgrades Netflix Stock to Neutral
8 hr 44 min ago
JPMorgan downgraded Netflix (NFLX) shares to “neutral” from “overweight” Monday, citing a sharp run-up in the streaming giant’s shares.
However, analysts Doug Anmuth and Bryan M. Smilek also raised their price target on Netflix shares to $1,220 from $1,150, while noting that the stock was “less compelling” following recent gains.
“To be clear, there’s no change to our long-term bullish view on NFLX’s streaming leadership position & the company’s potential to effectively become global TV over time,” they wrote. “However, more near-term, following significant stock price appreciation & outperformance, we believe the risk/reward in NFLX shares is becoming more balanced.”
Netflix shares, which hit a record high last week, were down 0.5% at $1,185 in recent trading. The stock has gained 33% since the start of 2025.
The analysts said that Netflix shares currently trade at 39 times forecast 2026 earnings per share (on a GAAP basis) and may have already priced in the upside to its 2025 outlook.
They also noted that investors may rotate their holdings into other stocks that had been under pressure if worries about the economy and tariffs ease. They wrote, too, that the “summer months are seasonally slower” for Netflix and that “2Q is historically a tricky quarter” for the company due to that seasonality.
Walmart Slips as Trump Says Company Should ‘Eat Tariffs’
9 hr 48 min ago
Walmart (WMT) shares slumped in early trading Monday after President Donald Trump said the retailer should absorb the cost of tariffs rather than pass it on to customers by raising prices.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump said in a Saturday message on Truth Social. “Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
Trump’s post came in response to Walmart CEO Doug McMillon warning that profits could fall this year depending on the direction of trade policy.
“Given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” McMillon said during the company’s earnings call Thursday, a transcript of which was made available by AlphaSense.
McMillon credited President Trump and Treasury Secretary Scott Bessent for “progress” on lowering tariffs after the U.S. and China agreed to roll back import taxes for a period of 90 days. “We will do our best to keep our prices as low as possible,” the CEO added.
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Walmart shares were down about 1% in recent trading. The stock is up about 8% since the start of the year, handily outpacing the performance of the S&P 500 over that period.
Watch These CoreWeave Levels After Last Week’s Huge Rally
10 hr 31 min ago
CoreWeave (CRWV) shares soared last week after the AI cloud provider posted a surge in quarterly revenue and disclosed that Nvidia (NVDA) has a higher stake in the company than investors had anticipated. The stock is moving higher again this morning.
CoreWeave, which went public in late March, reported Wednesday that first-quarter revenue grew over 400% year-over-year and said via a regulatory filing on Thursday that major partner Nvidia holds a 7% stake in the company, up from its pre-initial public offering holdings of roughly 5%. The company also said last week that it had agreed to a four-year deal with ChatGPT maker OpenAI worth up to $4 billion, adding to a nearly $12 billion commitment announced in March.
Through the close of trading Friday, CoreWeave shares had more than doubled from their $40 IPO price, boosted by last week’s news and investor appetite for up-and-coming generative AI plays that are scaling to meet the technology’s widespread demand. The stock was up about 1% at around $81 this morning, after gaining 56% last week.
CoreWeave shares forged a cup and handle pattern on the chart between late April and early May before breaking out above the formation’s top trendline last week.
Importantly, the move higher has occurred on above-average trading volume, indicating conviction from larger market participants behind the buying. Moreover, the relative strength index confirms bullish price momentum with an elevated reading, though the indicator fell below the overbought threshold on Friday, suggesting minor profit-taking ahead of the weekend.
The measuring principle projects an upside target in the shares of $96.90, about 20% above Friday’s closing price. Investors should watch key support levels on CoreWeave’s chart around $73 and $57.
Read the full technical analysis piece here.
S&P 500, Dow in Positive Territory for 2025
11 hours ago
While stocks are set to open lower on Monday, the major U.S. indexes have have posted big gains in three of the past four weeks as concerns about tariffs and the economy have subsided, at least temporarily.
Last week, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite each posted their biggest weekly gains since the week of April 7. The Dow added 3.4% last week, while the S&P 500 and tech-heavy Nasdaq jumped 5.3% and 7.2%, respectively.
With their recent gains, the S&P 500 and Dow nudged back into positive territory for 2025, while the Nasdaq remains down slightly
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Major Index Futures Point To Sharply Lower Open
11 hr 52 min ago
Futures tied to the Dow Jones Industrial Average were down 0.6%.
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S&P 500 futures were off 1.1%.
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Nasdaq 100 futures dropped 1.5%.
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