The S&P 500 gained 0.2% on Friday, August 16, capping a strong week and recovering from an earlier selloff. Major U.S. equity indexes, including the Nasdaq and Dow, also closed the day with modest gains of about 0.2%.
DexCom (DXCM) led the S&P 500 with a 3.2% rise, buoyed by news that its G7 continuous glucose monitoring system will be covered by Québec’s public prescription drug plan. Despite a disappointing second-quarter earnings report last month, DexCom’s stock has rebounded in August.
Ulta Beauty (ULTA) saw a 3.1% increase, extending gains from the previous session. The boost followed Berkshire Hathaway’s acquisition of a stake in the cosmetics retailer, with Morningstar endorsing Ulta as a promising investment due to its loyal customer base, diverse offerings, and expansion plans in Mexico.
Tapestry (TPR) also advanced 3.1% after reporting stronger-than-expected sales and profits for its fiscal fourth quarter. The luxury goods company benefited from robust demand for its Coach brand, though other brands in its portfolio, such as Kate Spade and Stuart Weitzman, faced some challenges.
Bath & Body Works (BBWI) rose 2.4% following the launch of new fragrances and candles inspired by the Netflix series “Stranger Things.” The retailer also announced a quarterly cash dividend of 20 cents per share, with second-quarter earnings results scheduled for release on August 28.
Conversely, Amcor (AMCR) experienced a 3.7% drop, the largest loss in the S&P 500, after its fiscal fourth-quarter earnings report revealed a revenue shortfall despite meeting earnings per share expectations. The global packaging firm has been grappling with soft demand and destocking issues in North America and Europe.
Chipotle Mexican Grill (CMG) fell 2.8% amid concerns over CEO Brian Niccol’s departure to Starbucks (SBUX). Analysts have expressed apprehension about the impact of Niccol’s exit on Chipotle’s performance, leading to reduced price targets for the stock.
Palo Alto Networks (PANW) declined 2.7% ahead of its fiscal fourth-quarter earnings report scheduled for Monday. The drop reversed earlier gains as analysts anticipate a slight year-over-year EPS decline, despite recent price target increases.
Vistra Corp. (VST) slipped 2.6% following a Securities and Exchange Commission (SEC) filing revealing that an executive sold nearly 35,000 shares for approximately $2.8 million. The sale has raised concerns, as insider selling is often viewed as a negative signal by investors.
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