Sector Update: Consumer Stocks Slide in Afternoon Trading

Lamb Weston Holdings shareholder Jana Partners has added Jeff Delapp to its slate of nominees for a potential overhaul of the board at the company, according to a regulatory filing Friday.

Delapp has previously served as president of Lamb Weston and president of McCain Foods, according to a Reuters report.

The activist investor last week called for a "significant" board change or a sale of the company, following Lamb Weston's "disastrous" financial results and the appointment of a new chief executive officer.

The companies did not immediately respond to MT Newswires' requests for comment.

The news was reported earlier by Reuters.

Lamb Weston shares rose 4% in recent trading.

All three major US stock indexes were down more than 1% in late-morning trading Friday, as the markets looked as though they would end Christmas week on a down note.

In company news, UnitedHealth Group and Amedisys extended the deadline for closing their $3.3 billion merger, as the US Department of Justice scrutinizes the deal, a Friday filing showed. Under a waiver agreement executed Thursday, the deadline was extended to 10 days after a final court decision is issued in the lawsuit filed by the Justice Department to block the proposed merger or on Dec. 31, 2025, whichever comes first, the filing showed. UnitedHealth shares were down 0.3%, while those of Amedisys were up 4.5% around midday.

Microsoft-backed OpenAI is considering reorganizing itself to become a Delaware public benefit corporation in order to raise conventional capital while maintaining a nonprofit arm, the company said Thursday in a blogpost. OpenAI currently operates as both a nonprofit and for-profit entity, supported by investments from Microsoft and other companies, as well as from venture capitalists. Microsoft shares were down 2.0%.

Brookfield Asset Management and co-investors acquired a roughly 53% stake in French renewables developer Neoen for 39.85 euros ($41.53) per share, Bloomberg reported Friday. The group purchased the stake from shareholders and plans to launch a tender offer for the remaining shares at the same price in order to take the company private, the report said. Brookfield Asset Management shares were down 1.4%.

Nearly 65 million people across the US watched two NFL matchups on Christmas Day that were broadcast exclusively on Netflix , CNBC reported Friday, citing data from Nielsen. The viewership set records for the most streamed NFL games ever in the US, CNBC reported, citing Nielsen. Netflix shares were down 2.3%.

Taiwan's Ministry of Science and Technology said Friday that funding for semiconductors, AI and aerospace could drop by 20 billion Taiwanese dollars ($609.1 million) next year after opposition parties approved laws cutting economic and technology spending, Reuters reported. Shares of Micron Technology , Nvidia , Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing were down 1.2%, 2.2%, 0.6% and 1.0%, respectively.

Arthur J. Gallagher said Friday it has acquired Murray Gardner Insurance Agency based in Tustin, Calif. Financial details of the deal were not disclosed. Shares of Gallagher were down 0.5%.

BioNTech (BNTX) has entered into two separate settlements with the US national Institutes of Health and the University of Pennsylvania over royalties on sales of the company's Covid-19 vaccine, separate filings showed Friday. Without admitting liability, the biotech company said it agreed to pay $791.5 million to the NIH and $467 million to the University of Pennsylvania, according to the filings. Shares of BioNTech were up 0.8%.

The S&P 500 Index today is down -1.16%, the Dow Jones Industrials Index is down -0.75%, and the Nasdaq 100 Index is down -1.71%. March E-mini S&P futures (ESH25) are down -1.34%, and March E-mini Nasdaq futures (NQH25) are down -1.87%.

Stocks today are moderately lower, weighed down by a selloff in the Magnificent Seven technology stocks. On the positive side, energy stocks are climbing today with the price of WTI crude oil up more than +1%. Thin trading conditions and low volumes due to holiday trading this week and next are leading to exaggerated moves in stocks.

The US Nov trade deficit widened to -$102.9 billion from -$98.3 billion in Oct, a larger deficit than expectations of -$101.2 billion, a negative development for Q4 GDP and bearish for stocks.

US Nov wholesale inventories unexpectedly fell -0.2% m/m versus expectations of a +0.1% m/m increase. Nov retail inventories rose +0.3% m/m, right on expectations.

Strength in Asian equity markets is supportive of US stocks. China’s Shanghai Composite Stock Index rose to a 2-week high today on the prospects of additional stimulus to bolster its economy. Japan’s Nikkei Stock index rallied to a 5-1/4 month high today, led by strength in exporters as the yen weakened to a 5-month low against the dollar. Also, better-than-expected economic news on retail sales and industrial production boosted Japanese stocks.

The markets are discounting the chances at 11% for a -25 bp rate cut at the January 28-29 FOMC meeting.

Overseas stock markets today are higher. The Euro Stoxx 50 rose to a 1-week high and is up +0.48%. China’s Shanghai Composite Index climbed to a 2-week high and closed up +0.06%. Japan’s Nikkei Stock 225 rallied to a 5-1/4 month high and closed up +1.80%.

Interest Rates

March 10-year T-notes (ZNH25) today are down -1 tick. The 10-year T-note yield is up +0.4 bp to 4.587%. Mar T-notes today are slightly lower and are under pressure from carryover weakness in European and Japanese government bonds. 10-year German bunds fell to a 1-1/4 month low, 10-year UK Gilts fell to a 1-week low, and 10-year Japanese JGB bonds dropped to a 13-year low. T-notes are also weighed down on the concern that President-elect Trump’s policy agenda may spark growth and inflation and potentially worsen the US fiscal backdrop. T-notes recovered most of their losses after a slump in stocks boosted safe-haven demand for government debt.

European government bond yields today are moving higher. The 10-year German bund yield climbed to a 1-1/4 month high of 2.403% and is up +5.9 bp to 2.383%. The 10-year UK gilt yield rose to a 1-week high of 4.645% and is up +4.5 bp to 4.611%.

Swaps are discounting the chances at 100% for a -25 bp rate cut by the ECB at its January 30 policy meeting and at 12% for a -50 bp rate cut at that meeting.

US Stock Movers

Mega-cap technology stocks are moving lower today and are weighing on the broader market. Nvidia is down more than -3% to lead losers in the Dow Jones Industrials. Also, Amazon.com , Microsoft , and Alphabet are down more than -2%. In addition, Apple and Meta Platforms are down more than -2%.

Tesla is down more than -3% on reports that rental car company Hertz is so desperate to shed its inventory of Tesla cars that it is aggressively sending cheap buyout options to rental customers.

Netflix is down more than -2% on less-than-favorable reviews for the company’s new “Squid Game Season 2” season released Thursday.

Crowdstrike Holdings is down more than -3% on signs of insider selling after an SEC filing showed CEO Kurtz sold $6.5 million of shares on Monday.

Broadcom is down more than -2% on signs of insider selling after an SEC filing showed CFO Spears sold $2.89 million of shares last Friday.

KKR & Co is down more than -1% after the Fly reported the company, along with Bain Capital, each offered over $5 billion for Japan’s Seven & I’s non-core assets.

Fastenal is down more than -2% after announcing that CFO Lweis will resign in April.

Lamb Weston Holdings is up more than +3% to lead gainers in the S&P 500 after an amended 13D regulatory filing showed Jana Partners LLC reported a holding in the company.

Energy producers and energy service providers are moving higher today, with the price of WTI crude oil rising more than +1%. APA Corp and Occidental Petroleum are up more than +1%. Also, Haliburton , Schlumberger , Exxon Mobil , and Devon Energy are up more than +0.6%. In addition, Chevron is up 0.32% to lead gainers in the Dow Jones Industrials.

Progyny is up more than +11% on signs of insider buying after an SEC filing showed Executive Chairman Schlanger bought $2.2 million shares on Thursday.

Amedisys is up more than +4% after the company and UnitedHealth Group gave themselves more time for UnitedHealth Group to complete the $3.3 billion deal to purchase the company.

Tencent Music Entertainment Group ADRs are up +0.63% after 86Research upgraded their recommendation on the ADRs to buy from hold with a price target of $14.

Earnings Reports (12/27/2024)

Daily Journal Corp (DJCO), Dakota Gold Corp (DC), Immersion Corp (IMMR).

On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.

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By Emily Dattilo

It seems to be a day for selling winners and buying losers.

The top five performers in the S&P 500 in recent Friday trading include frozen-food supplier Lamb Weston, lithium miner Albemarle, and natural gas producer EQT, according to Dow Jones Market Data.

This year, Lamb Weston stock has fallen 38%, while Albermarle has declined 38%, and EQT has slipped 16%, even though the S&P 500 is on pace to gain nearly 25%.

Those gains are coming at the expense of some of the market's most high profile winners, including utility stock Vistra, electric vehicle maker Tesla, and software company Palantir Technologies.

This year, Vistra is up 256%, Tesla has soared 75%, and Palantir has flown more than 300%.

The moves suggest that investors are taking profits on what has worked this year and putting what money they don't leave sitting in cash into some of the market's most unloved stocks hoping to find bargains.

Whether the shift is just some last-minute portfolio adjustments or the beginning of a new trend remains to be seen.

Write to Emily Dattilo at emily.dattilo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

The S&P 500 Index today is down -0.73%, the Dow Jones Industrials Index is down -0.31%, and the Nasdaq 100 Index is down -1.22%. March E-mini S&P futures (ESH25) are down -0.71%, and March E-mini Nasdaq futures (NQH25) are down -1.21%.

Stocks today are moderately lower, weighed down by higher bond yields as the 10-year T-note yield is up +1.0 bp at 4.593%, modestly below Thursday’s 7-month high. Weakness in megacap technology stocks today is also pressuring the overall market. On the positive side, energy stocks are climbing today with the price of WTI crude oil up more than +1%.

The US Nov trade deficit widened to -$102.9 billion from -$98.3 billion in Oct, a larger deficit than expectations of -$101.2 billion, a negative development for Q4 GDP and bearish for stocks.

Strength in Asian equity markets is supportive of US stocks. China’s Shanghai Composite Stock Index rose to a 2-week high today on the prospects of additional stimulus to bolster its economy. Japan’s Nikkei Stock index rallied to a 5-1/4 month high today, led by strength in exporters as the yen weakened to a 5-month low against the dollar. Also, better-than-expected economic news on retail sales and industrial production boosted Japanese stocks.

The markets are discounting the chances at 11% for a -25 bp rate cut at the January 28-29 FOMC meeting.

Overseas stock markets today are higher. The Euro Stoxx 50 rose to a 1-week high and is up +0.68%. China’s Shanghai Composite Index climbed to a 2-week high and closed up +0.06%. Japan’s Nikkei Stock 225 rallied to a 5-1/4 month high and closed up +1.80%.

Interest Rates

March 10-year T-notes (ZNH25) today are down -3 ticks. The 10-year T-note yield is up +1.0 bp to 4.593%. Mar T-notes today are moderately lower and are under pressure from carryover weakness in European and Japanese government bonds. 10-year German bunds fell to a 1-1/4 month low, 10-year UK Gilts fell to a 1-week low, and 10-year Japanese JGB bonds dropped to a 13-year low. T-notes are also weighed down on the concern that President-elect Trump’s policy agenda may spark growth and inflation and potentially worsen the US fiscal backdrop.

European government bond yields today are moving higher. The 10-year German bund yield climbed to a 1-1/4 month high of 2.403% and is up +5.0 bp to 2.373%. The 10-year UK gilt yield rose to a 1-week high of 4.645% and is up +3.8 bp to 4.614%.

Swaps are discounting the chances at 100% for a -25 bp rate cut by the ECB at its January 30 policy meeting and at 12% for a -50 bp rate cut at that meeting.

US Stock Movers

Tesla is down more than -2% on reports that rental car company Hertz is so desperate to shed its inventory of Tesla cars that it is aggressively sending cheap buyout options to rental customers.

Netflix is down more than -2% on less-than-favorable reviews for the company’s new “Squid Game Season 2” season released Thursday.

Mega-cap technology stocks are moving lower today and are weighing on the broader market. Nvidia is down more than -2%. Also, Amazon.com , Microsoft , Alphabet , and Meta Platforms are down more than -1%.

Crowdstrike Holdings is down more than -1% on signs of insider selling after an SEC filing showed CEO Kurtz sold $6.5 million of shares on Monday.

Broadcom is down more than -1% on signs of insider selling after an SEC filing showed CFO Spears sold $2.89 million of shares last Friday.

KKR & Co is down more than -1% after the Fly reported the company, along with Bain Capital, each offered over $5 billion for Japan’s Seven & I’s non-core assets.

Fastenal is down -0.9% after announcing that CFO Lweis will resign in April.

Lamb Weston Holdings is up more than +2% to lead gainers in the S&P 500 after an amended 13D regulatory filing showed Jana Partners LLC reported a holding in the company.

Energy producers and energy service providers are moving higher today, with the price of WTI crude oil rising more than +1%. Chevron is up more than +1% to lead gainers in the Dow Jones Industrials. Also, Occidental Petroleum , Haliburton , Exxon Mobil , Schlumberger , Devon Energy , and ConocoPhillips are up more than+1%. In addition, Diamondback Energy is up +0.87% to lead gainers in the Nasdaq 100.

VeriSign is up more than +1% after Warren Buffet’s Berkshire Hathaway disclosed buying $28.5 million worth of the stock in 3 sessions to Tuesday.

Progyny is up more than +12% on signs of insider buying after an SEC filing showed Executive Chairman Schlanger bought $2.2 million of shares on Thursday.

Amedisys is up more than +4% after the company and UnitedHealth Group gave themselves more time for UnitedHealth Group to complete the $3.3 billion deal to purchase the company.

Tencent Music Entertainment Group ADRs are up more than +3% after 86Research upgraded their recommendation on the ADRs to buy from hold with a price target of $14.

Earnings Reports (12/27/2024)

Daily Journal Corp (DJCO), Dakota Gold Corp (DC), Immersion Corp (IMMR).

On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.

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