U.S. equities were down at midday as the markets awaited clues about the future of interest rates from Federal Reserve officials this week. The Dow, S&P 500, and Nasdaq were all down.
Boeing (BA) shares slumped when the plane maker paused flight tests on its 777X after structural problems were found between the engine and wings.
Shares of Lowe’s (LOW) fell as the home improvement retailer lowered its outlook because consumers have pulled back on do-it-yourself (DIY) projects.
Eli Lilly (LLY) shares hit a record after a study showed the active ingredient in its Zepbound and Mounjaro drugs showed positive results in preventing Type-2 diabetes. Shares of diabetes delivery device manufacturers Insulet (PODD) and Dexcom (DXCM) declined after that report.
Netflix (NFLX) shares traded at a record high when the streaming giant said it saw a 150% increase over last year in upfront ad sales commitments.
Shares of Medtronic Plc (MDT) gained after the medical technology firm beat profit and sales estimates and raised its guidance on strong demand for its medical devices.
Palo Alto Networks (PANW) was the best-performing stock in the S&P 500 after the cybersecurity firm posted better-than-expected results and saw analysts raising their stock price targets amid solid guidance as customers signed up for more of the firm’s products.
Oil futures dropped. Gold prices rose. The yield on the 10-year Treasury note dipped. The U.S. dollar was down versus the euro and the pound.
The Biggest Stock Movers
Here are some of the biggest U.S. stock movers today:
Palo Alto Networks
Palo Alto Networks (NASDAQ: PANW) stock gained 7% after the company forecast fiscal 2025 revenue and profit above estimates, a sign of growing demand for its cybersecurity products as the digital threat landscape evolves.
Lowe's
Lowe’s (NYSE: LOW) stock fell 1.75% after the home improvement retailer lowered its annual profit and comparable sales forecasts, as hopes of a recovery in big-ticket home improvement projects turn dim in the face of cautious consumer spending.
Tesla
Tesla (NASDAQ: TSLA) stock fell 0.5% after the European Commission cut its proposed tariff on imports of the EV manufacturer’s cars built in China.
Boeing
Boeing (NYSE: BA) stock fell 5% after the plane manufacturer grounded its 777X test fleet after an inspection showed the failure of a key engine mounting structure, according to a report by the Air Current.
Coinbase
Coinbase (NASDAQ: COIN) stock fell 4% after the cryptocurrency exchange operator was hurt by choppy bitcoin prices.
Morgan Stanley
Morgan Stanley (NYSE: MS) stock fell 0.5% after Reuters reported that Morgan Stanley International Chairman Jonathan Bloomer was aboard a luxury yacht that sank off the coast of Sicily early Monday.
Xpeng
Xpeng (NYSE: XPEV) stock fell 6.4% despite the Chinese EV manufacturer reported a 60% jump in revenue in the second quarter, compared with the same period in 2023, amounting to $1.1 billion.
Fabrinet
Fabrinet (NYSE: FN) stock rose 15% after the provider of precision optical, electro-mechanical and electronic manufacturing services reported strong fourth-quarter revenue and earnings, outlining its growth strategy, including a major expansion with the construction of a new facility.
Eli Lilly
Eli Lilly & Co. (NYSE: LLY) rose 3.4% after it said its weight loss drug reduced the risk of developing type 2 diabetes by 94% in individuals with pre-diabetes and those who were obese.
Netflix
Netflix (NASDAQ: NFLX) rose 1.4%, hitting a record high, following the company's announcement of a successful close to its 2024 Upfront negotiations.
A Closer Look at Key Movers
Palo Alto Networks: Strong Cybersecurity Demand Fuels Growth
Palo Alto Networks' strong performance reflects the growing demand for cybersecurity solutions as the digital threat landscape evolves. The company's forecast for fiscal 2025 revenue and profit exceeding estimates underscores the confidence in its ability to capitalize on this trend.
Lowe's: Cautious Consumer Spending Dampens Home Improvement Outlook
Lowe's lowered its annual profit and sales forecasts, citing a slowdown in home improvement projects driven by cautious consumer spending. This mirrors the concerns expressed by Home Depot, suggesting that the home improvement market may not see a rebound in the second half of the year.
Boeing: 777X Test Flights Grounded Due to Structural Issues
Boeing's decision to halt test flights of the 777-9 due to a damaged component between the engine and airplane structure underscores the challenges the company faces in certifying this long-delayed aircraft. The grounding could impact the timeline for the 777X's entry into service.
A Look Ahead: Jackson Hole Symposium
The market is closely watching the Federal Reserve's annual economic symposium in Jackson Hole, Wyo., on Friday. Comments from Chair Jerome Powell and other members will provide insights into the future direction of interest rates. Investors will be looking for clues on whether the Fed might cut rates by half a point in September.
The Bottom Line
The stock market is in a state of flux as investors grapple with uncertainty about future interest rates. While some companies, like Palo Alto Networks, are thriving in a dynamic environment, others, like Lowe's and Boeing, are facing challenges. The upcoming Jackson Hole Symposium will be a key event to watch for insights into the economic outlook and potential interest rate adjustments.
