PRISM Market Momentum: Stocks on the Move on Friday; Expedia, Pinterest and Lululemon Slump
US equities are mostly higher on Friday afternoon, with the S&P 500 moving above the 5000 level for the first time ever. Major indices are set to deliver weekly gains with momentum and growth factors the standouts. Big tech is largely higher, driven by Nvidia’s ($NVDA) performance, and other outperformers include software, hospitals, asset managers, autos, and household products. It’s a slower day for beverages, food, energy equipment, managed care, insurers, and entertainment. Treasuries are mostly weaker, Gold is down (0.4%), Bitcoin futures are up +4.5% and WTI crude is up +0.7%.
Notable gainers this afternoon are Masonite International ($DOOR) which is up +34.5% after agreeing to be acquired by Owens Corning ($OC) ~$3.9B in cash. The transaction is expected to close in mid-2024. Cloudflare ($NET) has gained +22.4% on strong Q4 results with revenue up +32% year over year, and Soho House & Co Inc. ($SHCO) has risen +14.6% after announcing a new $50 million share repurchase authorization and news the company has formed a special committee to evaluate strategic transactions, including potential for becoming a private company.
The day’s decliners include Expedia Group ($EXPE) which is down (17.6%) after announcing the surprise resignation of CEO Peter Kern. The company’s Q4 earnings showed EPS and revenue exceeded though bookings and Q1 revenue growth guide missed consensus. Pinterest ($PINS) has lost (11.3%) on weaker than expected Q4 EBITDA and light revenue. Analysts were positive on margin expansion, new ad products, and the company’s newly announced partnership with Google. Lululemon athletica ($LULU) is down (1.7%) after being downgraded to underperform from neutral at BNP Paribas Exane.
