Three stocks power S&P 500 to fresh record closing high
Eighty-three basis points of today’s return in the SPDR S&P 500 ETF, more than 2x its daily gain, were attributable to Oracle and the two leading US chip designers, Nvidia and Broadcom.
Another day, another record close for the S&P 500.
Gains on the day were led by, of course, Oracle, which soared 36% after the cloud giant missed Q1 estimates but reported a 359% surge in its key “booked” revenue, known as “remaining performance obligations” (RPO). Shares pared gains after the company said its revenue backlog was a function of a $300 billion deal with OpenAI. The news lifted most AI-adjacent companies, but Oracle’s fellow hyperscalers were notable underperformers, especially Amazon.
Eighty-three basis points of today’s return in the SPDR S&P 500 ETF, more than 2x its daily gain, were attributable to Oracle and the two leading US chip designers, Nvidia and Broadcom.
Tech, utilities, and energy were the top-performing S&P 500 sector ETFs, while consumer staples and healthcare were laggards.
The Nasdaq 100 (which doesn’t have Oracle as one of its members) barely broke even, while the Russell 2000 gave back 0.2%.
Synopsys shares dropped nearly 36% after the chip designer missed top- and bottom-line estimates for the third quarter, as US export curbs hurt its business in China.
Chewy fell nearly 17%, despite the online pet retailer posting stronger-than-expected Q2 results and hiking its sales guidance for the year.
US-listed ADRs of Chinese EV maker Nio sank 8.7% as investors braced for $1 billion in share dilution from a secondary offering.
GameStop jumped 3.4%, building on its post-earnings gains, after the video game and collectibles retailer posted an impressive set of second-quarter results, with continued strength in its collectibles business.
Joby Aviation shares were up as much as 7% in premarket trading before settling down 1.1% following news that Uber will add the company’s Blade helicopter and seaplane services to its app as soon as next year.
Hims & Hers was flat as the company announced it had expanded into testosterone treatments after teasing the new category earlier this year.
