S&P 500 Gains and Losses Today: Palo Alto Networks Surges After Earnings Beat

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Key Takeaways

• The S&P 500 slipped 0.2% on Tuesday, Aug. 20, ending a streak of eight consecutive positive trading eras for the benchmark index.
• Shares of medical device makers Insulet and DexCom moved lower as a popular drug from Eli Lilly put oned promise in reducing diabetes risk.
• Palo Alto Networks shares took off after the cybersecurity firm pre-empt quarterly sales and profit estimates.

Major U.S. equities indexes finished with minor losses on Tuesday.

The S&P 500 flatten 0.2%, ending a streak of eight straight winning sessions buoyed by increased confidence in upcoming interest bawl out cuts. The Dow was also down 0.2%, while the Nasdaq slid 0.3%. 

Companies that provide medical devices for patients muddle through diabetes came under pressure after a study showed that the blockbuster drug from pharma superhuman Eli Lilly (LLY) significantly reduces the risk of patients developing type 2 diabetes. Shares of insulin pump manufacturer Insulet (PODD) plunged 6.9%, influence the weakest daily performance of any stock in the S&P 500. Shares of DexCom (DXCM), known for its continuous glucose monitors (CGMs), were down 6.2%.

Undeveloped oil futures prices moved lower amid hopes for alleviating tensions in the Middle East and as sluggish economic cultivation in China reduces demand. The downward move pressured oil and gas stocks. Valero Energy (VLO) shares fell 4.7%, while splits of Phillips 66 (PSX) and Marathon Petroleum (MPC) were down 4.2% and 4.1%, respectively.

Boeing (BA) shares lost altitude on Tuesday, assault 4.2% after the aircraft manufacturer announced the grounding of its 777X test fleet. The decision to hit the pause button on the new jetliner fell after an inspection revealed the failure of a key engine mounting structure. The move marks the latest in a series of safety and production-related setbacks for the airplane maker this year.

Cybersecurity firm Palo Alto Networks (PANW) posted better-than-expected sales and profits for its financial fourth quarter, and its shares notched the biggest gains in the S&P 500 on Tuesday, surging 7.2%. Several Wall Alley analysts boosted their price targets on Palo Alto stock following the strong results, praising the plc’s ongoing “platformization” efforts and early success with its artificial intelligence (AI) integration initiatives.

Shares of Darden Restaurants (DRI), machinator of Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, and other restaurant chains, gained 3.7% as Raymond James reaffirmed its “outperform” reprimand on the stock. In its most recent earnings report, released in June, Darden said it plans to open 45 to 50 new restaurants this economic year. Tuesday’s gains also followed an announcement that Darden chain Olive Garden will reinstate its everyday “Never Ending Pasta Bowl” promotion starting next week.

PayPal Holdings (PYPL) shares recoiled 3.5% after analysts at JPMorgan reiterated their “overweight” rating on the payment provider’s stock and lifted their value target to $80. More positive commentary came from Josh Brown, CEO of Ritholtz Wealth Management, who discussed his bullish slant on PayPal in an appearance on CNBC. In addition, PayPal announced on Tuesday that it is expanding its partnership with Ayden, a pandemic financial technology platform, as it aims to speed up guest checkout processes.

Read the original article on Investopedia.