Key takeaways
- The S&P 500 rose 0.1% on Tuesday, May 7, 2024, maintaining its streak of winning sessions dating back to the middle of last week.
- FMC Corp. shares soared after the agricultural chemicals supplier issued strong full-year revenue guidance, forecasting increased sales thanks to new product launches.
- Building materials supplier Builders FirstSource reported a year-over-year decline in gross profit margin and its stock plummeted.
Major US stock indexes were mixed and little changed on Tuesday.
The S&P 500 rose 0.1%, maintaining a streak of positive sessions dating back to the middle of last week amid renewed anticipation that the Federal Reserve could cut interest rates in the coming months. The Dow Jones also gained about 0.1%, but the tech-heavy Nasdaq fell 0.1%.
FMC Corp. Leads S&P 500 on Revenue Guidance
FMC Corp. (FMC) shares led the S&P 500, rising 9.5% after the agricultural sciences company issued better-than-expected full-year revenue guidance.
The supplier of insecticides and other agricultural chemicals expects the new products to drive strong revenue growth, the company said. FMC is also positioned to benefit from lower input costs, lower interest expenses and cost savings initiatives.
International flavors and fragrances jump to EPS
Shares of International Flavors and Fragrances (IFF) rose 6.4%. Shares soared after the supplier of ingredients for food, beverages and personal care products reported better-than-expected first-quarter revenue and earnings per share (EPS).
Volume growth and productivity gains helped drive the strong performance, and the company highlighted successful measures to optimize its portfolio, including the divestment of its cosmetic ingredients business.
Kenvue wins by beating earnings expectations
Shares of Kenvue (KVUE), the consumer health products company that completed its spinoff from Johnson & Johnson (JNJ) last year, gained 6.4% after the company's first-quarter earnings will exceed expectations.
Kenvue, home of Tylenol, Listerine and other well-known brands, achieved strong sales growth in its personal care and essential care segments. The company also announced plans to cut about 4% of its workforce in a bid to reduce costs.
Builders FirstSource Stock Falls After Earnings
Shares of Builders FirstSource (BLDR) posted the biggest losses of all S&P 500 stocks, falling 19.1% in the wake of the building materials supplier's first-quarter earnings report.
Although quarterly sales beat forecasts, net revenue fell short of estimates and a shift in product mix toward lower-margin products contributed to a year-over-year decline in gross profit margin. Builders FirstSource also faces challenges related to higher mortgage rates that limit affordability and weakness in the multifamily housing market.
Disney shares fall on revenue loss
Shares of Disney (DIS) fell 9.5% on Tuesday after the entertainment giant reported a quarterly net loss, reflecting the impact of elevated restructuring costs and other impairment charges.
Despite reporting a surprise profit in its direct-to-consumer entertainment segment, Disney offered a weak growth outlook for subscriptions and experiences. It doesn't expect core subscriber growth for the Disney+ streaming service during the current quarter.
