U.S. Equities Retreat from All-Time Highs, Texas Instruments Disappoints
The S&P 500 index closed down 0.3% on Friday, January 24, 2025, erasing gains from the previous session that had set a new record high. The decline marked the end of a busy week that saw the start of Donald Trump's second presidential term and a flurry of corporate earnings reports.
Texas Instruments Slips on Dismal Outlook
Texas Instruments (TXN) led the S&P 500 losses, plummeting 7.5% after issuing a weak earnings forecast. The semiconductor company's outlook raised concerns about a slower recovery in the analog chip market, dragging down shares of other industry peers such as Microchip Technology (MCHP) and Analog Devices (ADI).
CF Industries Drops on JPMorgan Downgrade
Fertilizer producer CF Industries (CF) also tumbled 7.5% following a downgrade to "underweight" from JPMorgan. Analysts cited concerns about rising natural gas prices, which are a key input in nitrogen fertilizer production, as well as industry shifts and geopolitical uncertainties.
Intuitive Surgical Falters on Currency Pressures
Intuitive Surgical (ISRG) shares declined 4% despite beating quarterly sales and profit estimates. The medical device maker attributed the sell-off to currency headwinds and projected a slowdown in procedure growth for 2025.
NextEra Energy Surges on GE Partnership
Renewable energy company NextEra Energy (NEE) soared 5.2%, becoming the top performer in the S&P 500. The surge came after the company announced a partnership with energy equipment maker GE Vernova (GEV) to develop gas-fired power projects that will incorporate renewable sources.
Welltower, Lululemon Gain Price Target Hikes
Real estate investment trust (REIT) Welltower (WELL) gained 3.4% after Bank of America raised its price target, citing the value of the company's healthcare facilities in an aging population. Apparel retailer Lululemon Athletica (LULU) climbed 3.1% following a price target hike from KeyBanc, which emphasized its strong holiday performance and growth initiatives.