Stocks Close Higher as S&P 500 Approaches New Record

Biggest S&P 500 Movers on Wednesday

23 minutes ago

Advancers

• Keysight Technologies (KEYS) shares skyrocketed 13.9%, marking the top daily performance in the S&P 500. The company posted better-than-expected results for its fiscal third quarter Tuesday. Although revenue was down slightly from a year ago, Keysight reported a year-over-year increase in orders, suggesting its business remains resilient even as customers in various end markets navigate macroeconomic headwinds.
• Retail giant Target (TGT) also topped analysts’ forecasts with its second-quarter revenue and earnings per share (EPS) results. Its shares soared 11.2%. After declining in the previous quarter, comparable store sales returned to year-over-year growth during the period, reflecting an increase in store traffic and gains in digital sales versus a year ago. Following the strong quarter, Target boosted its full-year profit guidance.

• Target was not the only retailer to see its stock price increase on Wednesday. Shares of TJX Companies (TJX) jumped 6.1%, reaching an all-time high, as the operator of TJ Maxx, HomeGoods, and Marshall’s beat quarterly sales and profit expectations. Consumers seeking value and discount options helped the company achieve comparable store sales growth during the quarter, with traffic rising across brands. TJX also announced an investment in Brands for Less, a discount retailer with a presence in the Middle East, as it aims to expand its international footprint.

Decliners

• Shares of investment manager Franklin Resources (BEN) plunged 12.6%, the steepest drop of any stock in the S&P 500 on Wednesday. The losses came after the firm announced that Ken Leech, co-chief investment officer (CIO) of its Western Asset Management Unit, took a leave of absence after he received a Wells Notice from the Securities and Exchange Commission (SEC). In a regulatory filing last month, Franklin said it was conducting an internal investigation into certain trading activity in the unit’s managed accounts.
• American Express shares dropped 2.6% after Bank of America downgraded the credit card issuer’s stock to “neutral” from “buy.” Analysts questioned Amex’s future growth potential, pointing to an uncertain outlook for consumer spending, even among the company’s higher-end clients.
• Shares of medical device maker Cooper Companies (COO) slipped 2.3%. Wednesday’s downturn marked a reversal from gains posted earlier in the week amid positive commentary from analysts at Piper Sandler, who highlighted strong growth trends in the contact lens business. Cooper is scheduled to release its next quarterly earnings report on Aug. 28.

–Michael Bromberg

Franklin Resources Plunges Amid SEC Investigation

2 hr 22 min ago

Franklin Resources (BEN) is the worst-performing stock in the S&P 500 Wednesday after the investment manager reported that Ken Leech, the co-Chief Investment Officer of its Western Asset Management unit, was on a leave of absence after receiving a Wells Notice from the Securities and Exchange Commission.

In an SEC filing, Western Asset Management said that because of Leech’s exit, it has determined that it would be “in clients’ best interests” to close its Macro Opportunities fund, which had approximately $2.0 billion in assets under management (AUM) as of July 31.

In a regulatory filing last month, Franklin Resources announced that it had launched an internal investigation into “certain past trade allocations of treasury derivatives in select Western Asset Management” managed accounts. It explained that the company was also cooperating with parallel government probes by the SEC and the U.S. Department of Justice.

Shares of Franklin Resources were down 11% in late trading Wednesday, trading at their lowest level since late 2020.

–Bill McColl

TJX Shares Hit Record High After Earnings

3 hr 30 min ago

Shares of TJX Companies (TJX), operator of discount retailer TJ Maxx, HomeGoods, and Marshall’s, rose to record levels Wednesday after the company’s second-quarter results came in above expectations thanks to higher sales.

TJX reported revenue and net income each above estimates and higher than the second quarter a year ago at $13.5 billion and $1.1 billion, respectively. Comparable store sales also rose 4% from the same time last year, above the company’s own projections as traffic rose across its brands and regions.

The retailer, which raised its profit outlook for the second consecutive quarter, also announced a $360 million investment to acquire a 35% stake in Dubai-based Brands for Less, which operates discount stores across the United Arab Emirates and Saudi Arabia.

TJX shares were up nearly 6% in recent trading.

–Aaron McDade

S&P 500, Dow Back Near Record Highs

6 hr 19 min ago

As the S&P 500 and Dow Jones Industrial Average inch higher on Wednesday, it’s worth noting that the major indexes are once again approaching their record highs.

The S&P 500 is 1% below the all-time closing high it recorded on July 16.

The Dow is just 0.8% away from its July 17 record.

Macy’s Plunges on Weak Sales, Lowered Outlook

7 hr 5 min ago

Macy’s (M) shares tumbled Wednesday after the retailer reported a decline in second-quarter sales and lowered its full-year revenue outlook.

The biggest U.S. department store chain operator said revenue fell 3.8% year-over-year to $4.94 billion, missing consensus estimates. Adjusted earnings per share (EPS) of $0.53 were better than forecasts.

CEO Tony Spring said that Macy’s faced a “challenging consumer environment, but said the retailer exhibited “effective expense control throughout the organization.” 

Sales at its Macy’s stores tumbled 4.4%, while they fell 0.2% at Bloomingdale’s. Bluemercury sales increased 1.7%. Merchandise inventories were up 6.0%, higher than the company expected, which the company blamed on the soft sales and “the decision to invest into areas of strength for the second half of 2024.”

Macy’s noted that it updated its outlook because of a “more discriminating consumer and heightened promotional environment relative to its prior expectations.” The retailer now sees full-year net sales of $21.2 billion to $22.4 billion, down from the previous $22.3 billion to $22.9 billion. It anticipates adjusted EPS to be unchanged from the earlier $2.55 to $2.90.

Macy’s shares were down 14% in recent trading, near their lowest point of 2024.

–Bill McColl

Target Soars on Strong Earnings, Boosted Outlook

8 hr 22 min ago

Target (TGT) shares jumped in early trading Wednesday after the retailer reported better-than-expected second-quarter earnings and lifted its full-year profit forecast.

Target posted second-quarter revenue of $25.42 billion, up 2.6% year-over-year, while net income jumped 40% to $1.19 billion, as the retailer’s cost-cutting efforts pay off.

After comparable store sales declined year-over-year in the first quarter, the metric returned to growth in the second quarter, with comparable store sales up 2% from the same time last year. Target also said discretionary sales trends “continued to improve meaningfully” in the quarter, led by growth in categories like apparel and beauty. 

For the full year, Target said it expects full-year comparable sales on the low end of its initial flat-to-2% growth projection, but lifted its EPS projection to a range of $9 to $9.70, compared to $8.60 to $9.60 previously.

Target shares were up 15% shortly after the opening bell.

–Aaron McDade

Stocks Futures Point to Higher Open for Major Indexes

9 hr 30 min ago

Futures tied to the Dow Jones Industrial Average were up 0.2%.

S&P 500 futures were also up 0.2%

Nasdaq 100 futures were up 0.1%.