Stocks @ Night is a daily newsletter that provides a comprehensive overview of the market after hours, focusing on the day’s events and what investors can expect for the following session.
On Tuesday, the markets experienced a notable pullback, with the Dow Jones Industrial Average, S&P 500, Nasdaq, and Russell 2000 retreating from recently achieved record levels. This trend could be attributed to comments from Federal Reserve Chair Jerome Powell, who described stock prices as “fairly highly valued.” Powell also emphasized that the future trajectory of interest rate cuts remains uncertain, labeling the situation as “challenging.” CNBC’s Mike Santoli observed that traders are taking profits particularly in leading tech stocks such as Nvidia and Oracle, which have faced scrutiny over potential overcapacity issues. Interestingly, while the cap-weighted S&P 500 closed lower, the equal-weighted S&P 500 managed to record a slight gain. Gold prices reached new heights, buoyed by concerns raised by Powell regarding the U.S. economy’s health.
In corporate news, the Trump administration is reportedly in discussions to acquire up to a 10% equity stake in Lithium Americas in connection with ongoing loan negotiations. Following this announcement, shares of Lithium Americas surged nearly 90% in after-hours trading, although they were already up 3% during the regular session. Albemarle, another player in the lithium market, also saw an increase in its stock price after hours, despite experiencing a nearly 7% decline year-to-date.
Micron Technology reported outstanding earnings, with revenue climbing 46% year-over-year, which propelled its shares to spike in extended trading. The company is on track for its best monthly performance since December 2009, with its stock value nearly doubled this year. Investors can look forward to an exclusive interview with Micron CEO Sanjay Mehrotra on “Squawk on the Street” scheduled for tomorrow.
On the media front, Nexstar has blocked ABC affiliates from airing “Jimmy Kimmel Live!” marking a significant blackout reminiscent of Sinclair’s actions in the past. Despite ending the day nearly flat, Nexstar’s stock has seen a decline of about 3% for the week. Conversely, Sinclair’s shares increased by 3%, contributing to a 4% rise for the week. In other media news, Paramount Skydance saw a 6% increase despite minimal news, continuing a strong performance in September. The company is also preparing to make a bid for Warner Bros. Discovery, whose stock has reached levels not seen since April 2022. Additionally, shares of Fox Corp. and News Corp. are trading at all-time highs.
Looking ahead, KB Home is set to report its earnings after the bell on Wednesday. The homebuilder may be poised to end a three-month winning streak, although it experienced its best monthly performance since July 2024 last month. Currently, KB Home’s stock is trading approximately 30% below its all-time high, achieved in September 2024.
Conversely, Opendoor has faced significant challenges, losing a quarter of its market value this week, marking its worst performance since August 2024. The downturn follows the revelation by Access Industries that it sold over 11.36 million shares of Opendoor. Despite this, the company’s stock still boasts a remarkable 340% gain year-to-date.
Meanwhile, Plug Power’s nine-day winning streak could be ending, though the stock remains 79% higher over that period. Interestingly, there seems to be little fundamental news impacting the company as it looks to maintain momentum through the end of the year. Year-to-date, Plug Power has appreciated by approximately 19%.
