U.S. equities soared at midday following the release of the Federal Reserve's preferred gauge of inflation, which aligned with expectations and bolstered optimism for interest rate cuts this year. Major indices including the Dow, S&P 500, and Nasdaq all registered gains.
Key Market Performers
3M (MMM) emerged as the best-performing stock in both the Dow and S&P 500. The company, known for its Post-it Notes and Scotch tape, surpassed profit and sales estimates and raised its guidance, which sent shares skyrocketing. This positive outlook follows 3M's strategic refocus on growth after resolving legal challenges and spinning off its healthcare unit.
Charter Communications (CHTR) also saw a rise in its stock value. The cable, internet, and phone provider reported better-than-expected results driven by gains in mobile phone revenue. Similarly, Mohawk Industries (MHK) shares spiked after the flooring manufacturer exceeded earnings and guidance forecasts. Mohawk's cost-cutting measures and a double upgrade from Bank of America, which praised its growth outlook and attractive valuation, contributed to the surge.
Notable Declines
In contrast, Dexcom (DXCM) shares plunged due to missed revenue estimates and a reduction in guidance. The glucose monitoring device maker's performance was hindered by a lower-than-expected increase in new customers. Similarly, Southwest Airlines (LUV) experienced a drop in shares as activist investor Elliott Investment Management criticized management following the airline's announcement of new revenue-boosting initiatives.
Additionally, Biogen (BIIB) shares fell when European regulators rejected approval of its Alzheimer’s disease treatment, developed in collaboration with Japan’s Eisai.
Market Reactions and Broader Impacts
On the commodities front, oil futures declined while gold prices advanced. The yield on the 10-year Treasury note fell, and the U.S. dollar lost ground to the euro, pound, and yen. Meanwhile, most major cryptocurrencies traded higher.
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