Apple AI Launch Fuels 6.3% Stock Surge

Key Takeaway

• Apple (AAPL) surged 6.3% on new AI features, while Affirm (AFRM) rose 8.4% as its payment products will be available on Apple Pay.
• CoreCivic (CXW) plummeted 21% after suspending financial guidance for 2024 due to a terminated ICE contract, highlighting sector-specific risks.

Intraday Top Moves

At 1:25 p.m. in New York, the major indices are experiencing mixed movements, with a notable selloff in the banking sector dragging down the broader market. The S&P 500 Index is down 0.3%, the Dow Jones Industrial Average has dropped 0.7%, while the Nasdaq 100 remains relatively unchanged. The MSCI World Index is also down 0.4%, reflecting a cautious global sentiment.

• S&P 500 Index: Down 0.3%, driven by a selloff in banks.
• Nasdaq 100: Little changed, indicating stability in the tech sector.
• Dow Jones Industrial Average: Down 0.7%, under pressure from broader market declines.
• MSCI World Index: Down 0.4%, mirroring global market caution.

Tech Sector Highlights

Apple (AAPL) shares surged 6.3% after the tech giant introduced its long-awaited new artificial intelligence features, signaling strong investor confidence in its innovation pipeline. Autodesk (ADSK) shares, however, fell 3.8% as the company faces probes from the US Securities and Exchange Commission and the Department of Justice following an internal investigation of its accounting practices.

Retail and Consumer Goods

Academy Sports & Outdoors (ASO) shares dropped 3.8% after BofA downgraded the stock to neutral from buy, citing weaker-than-expected first-quarter results attributed to economic pressures on consumers. Affirm (AFRM) shares rose 8.4% following Apple's announcement that Affirm’s payment products are expected to be available to Apple Pay users in the US later this year.

Energy and Utilities

NextEra Energy (NEE) shares fell 6.3% after management provided a profit forecast range for 2027 with a midpoint that falls short of estimates. FMC Corp. (FMC) shares, on the other hand, rose 3.5% after the agricultural company appointed Pierre Brondeau as CEO, a role he previously held from 2010 to 2020.

Notable Gains and Losses

CoreCivic Inc. (CXW) experienced a significant drop of 21% after suspending its financial guidance for 2024, following a notification from US Immigration and Customs Enforcement that their services agreement for the South Texas Family Residential Center will be terminated in 60 days. Sage Therapeutics (SAGE) shares fell 5.1% after providing an update from a trial of a treatment for Huntington’s Disease that disappointed Wall Street.

Key Movers & Takeaway

Today's market movements highlight the impact of sector-specific news and broader economic pressures. The tech sector remains resilient, buoyed by innovation and strategic partnerships, while the retail and consumer goods sectors face challenges from economic pressures. The energy sector shows mixed results, with leadership changes and profit forecasts influencing stock performance.

Key Movers Table by Market Cap

LargeCap Movers (>$20B)

Mid-Cap Movers ($5B-$20B)

SmallCap Movers ($50M-$5B)

Top Overbought/Oversold by 14-Day RSI

Overbought Stocks

Oversold Stocks

Today's market activity underscores the importance of sector-specific developments and broader economic conditions in shaping stock performance. Investors should remain vigilant and consider these factors when making investment decisions.