MARKET WRAP

Stocks Wavered today following a rocky start to October.

The S&P was up 0.01%, the Nasdaq up 0.08% while the Russell 2000 was down 0.03%.

At least 20 stocks in the S&P 500 were trading at new 52-week highs today. Names on that list include Home Depot, Raytheon, BlackRock and Vistra.

Humana, Conagra and Nike were the worst-performing stocks on the day.

Humana was down around 12% after the company said that only 25% of its members are enrolled in highly-rated Medicare Advantage plans for 2025, down from 94% in 2024. This sharp decline in quality ratings could significantly impact Humana’s 2026 revenue, prompting the company to explore mitigation strategies.

Conagra fell 8% due to disappointing earnings, and Nike shares slid neatly 7% after pulling its full-year guidance and postponing its investor day ahead of a CEO change.

MRKT MATRIX: October 2, 2024

Today’s Top Stories:

• S&P 500 is little changed as shaky October start continues on escalating Middle East tensions (CNBC)

• Saudi Minister Warns of $50 Oil as OPEC+ Members Flout Production Curbs (WSJ)

• Tesla’s First Quarterly Sales Gain This Year Comes Up Short (Bloomberg)

• Bank of America’s top ideas for the fourth quarter including Starbucks and Walmart (CNBC)

• Ozempic Goes From Threat to Opportunity for Packaged-Food Makers (Bloomberg)

• AI Can Only Do 5% of Jobs, Says MIT Economist Who Fears Crash (Bloomberg)

• OpenAI closes funding at $157 billion valuation, as Microsoft, Nvidia, SoftBank join round (CNBC)

• Equinix signs $15 bln joint venture to build U.S. data center infrastructure (Reuters)

• Oracle to Invest $6.5 Billion in AI and Cloud Infrastructure in Malaysia (WSJ)

• Microsoft Pitches AI for Consumers Against Crowded Field of Rivals (Bloomberg)

Today’s Okay, Computer. is Presented by RBC and Current

The Killer AI Device is Already in 2 Billion Pockets

Dan Nathan and Guy Adami discuss the tech market's recent decline, focusing on Apple and semiconductor stocks. They explore the influence of geopolitical tensions, particularly between Israel and Lebanon, and their impact on tech stocks. The conversation also delves into Apple's future, including its AI capabilities and market performance. The hosts analyze the performance of semiconductor companies like NVIDIA, Dell, and Micron amid the generative AI trend.

After the break, Dan interviews Scott Lynn, CEO and founder of Masterworks, discussing the opportunity for average investors to invest in high-value art through a fractionalized basis, the performance of contemporary art compared to other asset classes, and the role of low correlation in portfolio diversification. Lynn also reflects on his entrepreneurial journey, the art market's dynamics, and the recent boom and bust in the NFT market.

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