Hourly Market Review Feb 5,2024 14 PM

Stocks experienced a decline on Monday as investors prepared for a week full of earnings reports, while also reevaluating the potential timeline for interest rate cuts by the Federal Reserve. Market sentiment shifted significantly with traders now estimating a 14% chance of a rate cut in March, a decrease from 20% on Friday and a stark drop from 96% a month ago, as per the CME FedWatch tool. Initially, major stock indexes opened with losses which intensified following the release of the ISM services report. This report highlighted an increase in prices paid by services organizations, reaching an 11-month high, which contributed to the market's downturn.

On Monday, several stocks showed notable movements:

• Boeing fell by 1.62% after announcing the need to rework around 50 undelivered 737 MAX jets due to misdrilled holes discovered by supplier Spirit AeroSystems. Boeing stated this might delay some 737 deliveries but clarified it wasn't an immediate flight safety issue. This comes after a recent incident involving a 737 MAX 9 jet. Spirit AeroSystems shares also declined by 4.8%.

• Catalent surged 10% to $59.78 following the announcement of its acquisition by Novo Holdings for $63.50 per share in cash, a 16.5% premium over its last closing price, valuing the company at $16.5 billion. Novo Holdings is a major shareholder of Novo Nordisk.

• Tesla dropped 3.6% amid reports over the weekend of CEO Elon Musk taking drugs with some board members.

• Meta Platforms decreased by 3% after a 20% surge on Friday due to a positive outlook and dividend announcement, marking a historic one-day gain in market value.

• Nvidia increased by 4% to $687.89, reaching a record high, driven by high demand for its GPUs for artificial intelligence training, supported by strong investments from Meta, Microsoft, and Amazon.com.

• McDonald's shares were down 4.1% after reporting fourth-quarter revenues and same-store sales that fell short of Wall Street expectations, influenced by the war in the Middle East.

• Caterpillar rose by 1.9% following fourth-quarter earnings that exceeded analyst expectations with an improved operating profit margin.

• Air Products & Chemicals shares fell 15% after cutting its fiscal 2024 earnings outlook significantly below analyst estimates.

• Elanco Animal Health increased by 5.2% after announcing the sale of its aqua business to Merck Animal Health for $1.3 billion.

• Palantir Technologies experienced a 2% drop ahead of its fourth-quarter earnings report, with analysts expecting adjusted earnings of 8 cents a share on revenue of $603 million.

• Snap announced a workforce reduction of about 10%, leading to a 3.6% decrease in its stock, as part of restructuring efforts to support growth, with anticipated charges of $55 million to $75 million.