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Stock Market Today: S&P 500 rides rally in energy to close at record high

Published 02/14/2024, 08:26 PM
Updated 02/15/2024, 04:06 PM
© Reuters.

Investing.com -- The S&P 500 closed at a record high Thursday, as a jump in energy led the broader market rally and boosted sentiment after economic data showed possible signs of weakness in the consumer.     

At 16:00 ET (21:00 GMT), the S&P 500 futures contract rose 0.5% to a closing record of 5,031.02. The Dow futures climbed 249 points or 0.9%, while Nasdaq 100 futures added 0.30%.

Occidental Petroleum leads energy higher

Occidental Petroleum Corporation (NYSE:OXY) rose nearly 5% to push the broader energy sector higher after Warren Buffet's Berkshire Hathaway (NYSE:BRKa) revealed late Wednesday it had raised it stake in the oil major by about 9% in Q4.

Occidental Petroleum also reported quarterly results that topped Wall Street estimates following better-than-expected production. 

Consumer strength in question after retail sales slip more than expected, but jobs market continues to so show strength   

The Commerce Department said on Wednesday that retail sales fell 0.8% last month. That was a steeper than the 0.2% decline economists had expected and was largely driven by a drop in receipts at auto dealerships and gas stations. 

"The retail sales report this month supports our view that the economy is strong but cooling," Morgan Stanley said in a Wednesday note, adding that it expects a first rate cut in June.

Still, the labor market continued to show signs of strength as initial jobless claims decreased by 8,000 to 212,000 in the week ended Feb 10, beating forecasts of a 1,000 decline, signaling that the labor market continues to show strength. 

Treasury yields were off the high of the day, with the the rate-sensitive 2-year U.S. Treasury yield, which trade inversely to bond prices, were off the highs of the day trading at 4.576%.

Following the data, Goldman Sachs cut its outlook on U.S. Q1 economic to 2.5% from a prior estimate of 2.9%.

Cisco, Deere & Co . slump on guidance cut; Twilio tanks on softer outlook

Cisco Systems (NASDAQ:CSCO), down 2%, reduced its full-year guidance and detailed plans to cut its global workforce as part of a broader restructuring push, sending shares lower on Thursday.

Deere & Company (NYSE:DE) tumbled 5% after slashing its full-year net income outlook, in a sign that elevated interest rates are eating away at farmer demand for high-priced agricultural equipment. Shares in the agricultural equipment maker dipped.

Twilio Inc (NYSE:TWLO) also stumbled on the earnings stage after reporting softer guidance for the current quarter and weaker than expected growth in its segment.Its shares fell more than 15%, with Morgan Stanley saying the disclosed growth rates of the company's segment -- of 4% in Q4 from a year earlier and 7% for 2023 -- leave "us more cautious on the ability to turnaround this business while a part of Twilio."

SoundHound AI , ARM higher after Nvidia reveals stake; Super Micro gets BofA boost, Apple falls on Buffett trim 

AI Chatbot software maker SoundHound AI (NASDAQ:SOUN) surged 66%, while chip designer Arm Holdings (NASDAQ:ARM) closed up over 5% after Nvidia (NASDAQ:NVDA) revealed that it had taken stakes in both of the AI-related businesses.

"We continue to believe that Sound is in a strong position to capture its fair share of the AI chatbot market demand wave in 2024

Elsewhere in tech, Super Micro Computer (NASDAQ:SMCI) jumped more than 14% after Bank of America started coverage on the stock with a price target $1,040, citing a potential boost from AI-driven server demand.  

Apple Inc (NASDAQ:AAPL), meanwhile, cut losses to close just below the flatline after Berkshire Hathaway cut its stake in the tech giant by 1%, though the tech giant still makes up about a fifth of Berkshire's portfolio, which owns about 6% of Apple shares. 

((Scott Kanowsky, Oliver Gray contributed to this report.))

Latest comments

ENOUGH IS ENOUGH!!! AMERICA CANNOT SURVIVE ANY MORE OF THIS BIDEN ECONOMIC CARNAGE!!!
indeed.. I'm sick and tired of making money in the markets every day, and watching my pension grow.. we need the orange one to put a stop to all this...
YES!!! GROWING GDP, RECORD NUMBER OF JOBS AND RECORD DOMESTIC ENERGY PRODUCTION ARE ALSO VERY BAD FOR AMERICA!!!
FED please lower interest rate even if 1 basis point
The other guys, stop crying, this is not a bear market.
Cornpop was a bad dude...and I learned ALL about roaches...
nonsense
Apple? The current market scam by the big bag scum. SEC approved. ✔💯🇺🇸
Biggest investment JOKE in the world.
Mitchel you are the investment joke of the world.
Another criminally manufactured, uninhibited "rally" in the US Ponzi Scheme.  Of course the "late trade" shenanigan's faced by every loss are magically absent during a "rally."  Fraudulent, criminally manipulated JOKE.
IT'S A CONSPIRACY!!!
Repiglacons Rule
Did you guys buy today's naasdaq dip? nasdaq was down like 20 basis points earlier. Did you guys load up? Should have. Cause you dont get opportunities like that anymore to buy the dip as THERE ARE NO DIPS.
You started your post with buy today's dip and ended with "no dips".
crude is at a do or die level. it must break above and close above this level, to attempt any kind of trend change. this is where the big specs might try shorting the crude market.
market looks like higher for longer. sorry for da bears.
Once WTI crude tops $80bbl we can look at energy prices contributing to inflation again. So buy, buy, buy. LOL
Criminal loss removal day 2 in the BIGGEST INVESTMENT JOKE IN THE WORLD.
Mitch the biggest joke on investing.com
Mitch must have lost out on thousands of dollars in trading profits.
Man do they even read their article titles 🤣
Nothing more bullish than a retail sales decline in an environment of rising inflation!
So earlier this week they reveal inflation is going back up and rate drops not happening, today we get news that retails sales are dropping. And this is the headline "S&P, Dow open higher as investors eye U.S. retail sales decline" This will have to go down in the history books as one of the lowest points of human intelligence.
Don't forget Japan and UK officially in a recession
"US retail sales tumble in January; weekly jobless claims fall". Congratulations, inflation has started trending back up without being able to do any rate cuts, and the macro shows that we have already hit stagflation. Best of luck to the 7 stocks carrying the weight of the entire market and that now have P/E's near 100.
short squeeze everyday
Edit: Inflession. There, I called it first.
Inflation fears shrugged off. Still talk of a March rate cut. LOL
stagflation
edit: inflession there, I called it first
wrong, there are no signs of stagflation or recession in the data. the unemployment alone tells the tale of a possible long term economic expansion.
The criminal pre-market pumps are humming.  Yet another single day loss to be managed out of the system, as day 2 of loss removal is on tap.  Single day losses, and weeks of "gains," only in the BIGGEST INVESTMENT JOKE IN THE WORLD.
do they pay you for the number of complaints Mitch....
actually investors don't care about any economic data
because it's old news.
Nvidia should invest and taken stakes in all tech stocks to rally the Nasdaq to heaven......
NVDA will be the lArGeSt corporation in a month or two by market cap. Since this scam is incorporated in every single 401k and pension fund, bubble pop will entirely collapse the world economy.
Futures recover from CPI dump cos AI will reduce CPI
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