S&P 500 and Nasdaq Composite Close Lower to Snap Winning Streaks

Biggest S&P 500 Movers on Tuesday

54 minutes ago

Decliners

• Companies that provide medical devices for patients managing diabetes came under pressure after a study showed that the blockbuster drug from pharma giant Eli Lilly (LLY) significantly reduces the risk of patients developing type 2 diabetes. Shares of insulin pump manufacturer Insulet (PODD) plunged 6.9%, marking the weakest daily performance of any stock in the S&P 500. Shares of DexCom (DXCM), known for its continuous glucose monitors (CGMs), were down 6.2%.
• Crude oil futures prices moved lower amid hopes for alleviating tensions in the Middle East and as sluggish economic growth in China reduces demand. The downward move pressured oil and gas stocks. Valero Energy (VLO) shares fell 4.7%, while shares of Phillips 66 (PSX) and Marathon Petroleum (MPC) were down 4.2% and 4.1%, respectively.

• Boeing (BA) shares lost altitude on Tuesday, descending 4.2% after the aircraft manufacturer announced the grounding of its 777X test fleet. The decision to hit the pause button on the new jetliner came after an inspection revealed the failure of a key engine mounting structure. The move marks the latest in a series of safety and production-related setbacks for the airplane manufacturer this year.

Advancers

• Cybersecurity firm Palo Alto Networks (PANW) posted better-than-expected sales and profits for its fiscal fourth quarter, and its shares notched the biggest gains in the S&P 500 on Tuesday, surging 7.2%. Several Wall Street analysts boosted their price targets on Palo Alto stock following the strong results, praising the company’s ongoing “platformization” efforts and early success with its artificial intelligence (AI) integration initiatives.
• Shares of Darden Restaurants (DRI), operator of Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, and other restaurant chains, gained 3.7% as Raymond James reaffirmed its “outperform” rating on the stock. In its most recent earnings report, released in June, Darden said it plans to open 45 to 50 new restaurants this fiscal year. Tuesday’s gains also followed an announcement that Darden chain Olive Garden will reinstate its popular “Never Ending Pasta Bowl” promotion starting next week.
• PayPal Holdings (PYPL) shares jumped 3.5% after analysts at JPMorgan reiterated their “overweight” rating on the payment provider’s stock and lifted their price target to $80. More positive commentary came from Josh Brown, CEO of Ritholtz Wealth Management, who discussed his bullish outlook on PayPal in an appearance on CNBC. In addition, PayPal announced on Tuesday that it is expanding its partnership with Ayden, a global financial technology platform, as it aims to speed up guest checkout processes.

–Michael Bromberg

Gold Defies Conventional Wisdom

2 hr 50 min ago

The price of gold hit another all-time high Tuesday, defying the notion that returns on the precious metal peak during periods of financial market distress.

Of course, gold doesn’t always rise when stocks fall, or vice versa. But investors traditionally have parked assets in gold as a safeguard against turbulence in global financial markets, inflation, and economic uncertainty.

Though some concern about a slowdown persists, U.S. economic growth has exceeded expectations this year as inflation moderated. Globally, stock markets have posted strong gains and bond markets also have advanced.

One might expect the return on gold to trail stocks in that scenario. Instead, gold has outpaced equities this year.

Demand from global central banks may offer one explanation. They bought a record amount of gold in the first half of the year, 5% more than the record high established in last year’s first half.

That demand likely has persisted and may continue into 2025, according to the World Gold Council. The group’s latest survey of central bank reserve managers, conducted between February and April of this year, indicated that 29% planned to increase gold reserves in the next 12 months, the highest level since the survey began six years ago.

–Lyle Niedens

Netflix Hits Record High on Strong Ad Sales

4 hr 35 min ago

Netflix (NFLX) shares traded at their all-time high Tuesday after the streaming giant reported a huge jump in advertising sales.

The company said it had closed deals with all major holding companies and independent agencies, securing a “150% plus increase” over 2023 in upfront ad sales commitments.

Netflix said that it closed partnerships for several of its upcoming films and series, including “Squid Game,” “Outer Banks,” and “Happy Gilmore 2.” In addition, it struck deals for highly watched live events such as Christmas Day NFL games and “WWE Raw.”

Netflix shares were up 1.5% at $698.67 recently, after surging as high as $711 early in the session.

–Bill McColl

Eli Lilly Hits Record High

6 hr 37 min ago

Eli Lilly (LLY) stock jumped to a record high on Tuesday after clinical trial results showed tirzepatide—the active ingredient in Lilly’s injectable weight-loss drug Zepbound and diabetes treatment Mounjaro—lowered patients’ risk of developing type 2 diabetes by 94%.

The three-year study of patients with prediabetes and either obesity or overweight also found that those who received tirzepatide lost 22.9% of their body weight on average, compared with 2.1% for patients treated with a placebo. 

Earlier this month, Eli Lilly reported Mounjaro sales more than tripled year-over-year to $3.09 billion in the second quarter. Zepbound sales exceeded $1 billion in just its second full quarter since being approved by the Food and Drug Administration in November.

Shares of Eli Lilly jumped 5% to an all-time high of $967 Tuesday morning, before paring gains to trade 3% higher recently. The stock has risen more than 60% this year compared with a 17% gain for the S&P 500.

–Andrew Kessel

Palo Alto Pops After Earnings

8 hr 43 min ago

Shares in Palo Alto Networks (PANW) rose in premarket trading Tuesday after the cybersecurity provider released quarterly results that surpassed expectations and issued an outlook at the high end of Wall Street forecasts.

Buyers snapped up a temporary dip below a multi-month trendline and the 200-day moving average earlier this month, with the price continuing to show upward momentum leading into the company’s quarterly results.

Investors should watch key overhead chart levels in Palo Alto shares at $345, $375, and $435, while also keeping an eye on support around $316.

Palo Alto shares were up 6.6% at $366.13 in recent trading.

Read our full technical analysis here.

–Timothy Smith

Stock Futures Little Changed

9 hr 46 min ago

Futures tied to the Dow Jones Industrial Average were down 0.1%.

S&P 500 futures were up fractionally.

Nasdaq 100 futures were down fractionally.