In a notable trading session, Ford and General Motors reported their best annual U.S. sales figures since 2019, prompting significant movements in their stock prices. Following the positive sales announcement, shares of Ford increased by 2.4%, while General Motors saw a rise of nearly 1%. This resurgence underscores the automakers' recovery in a competitive market, reflecting strong consumer demand and effective supply chain management.
Conversely, Carvana faced a steep decline in its stock price, plummeting 11.2% after Hindenburg Research, a short seller, accused the online used car retailer of accounting manipulation. This revelation has raised concerns among investors regarding Carvana's financial practices, overshadowing its impressive stock performance earlier in the year, where it surged 284%. However, the company has struggled in 2024, with shares down more than 5% so far this year.
The broader market also reacted to news concerning alcohol consumption and health risks. U.S. Surgeon General Dr. Vivek Murthy issued a new advisory linking alcohol consumption to an increased risk of cancer. This announcement impacted several beverage stocks negatively. Shares of Diageo dropped nearly 4%, while Anheuser-Busch InBev and Molson Coors experienced declines of 2.2% and 3.4%, respectively. Additionally, Constellation Brands saw a slight dip of 0.3%, reflecting investor caution in the wake of the health advisory.
In contrast, Rivian Automotive experienced a significant boost, with shares soaring 24.5% after the company met its vehicle production and delivery guidance. This achievement signals Rivian's growing momentum in the electric vehicle sector, attracting investor confidence.
Energy companies also saw positive movements in their stocks. Constellation Energy's shares jumped 4%, further extending gains from Thursday's announcement of $1 billion in contracts. Meanwhile, Vistra experienced an 8.5% increase, building on previous session gains as the energy market remains robust.
Conversely, U.S. Steel faced challenges as its shares fell 6.5% after President Joe Biden blocked Japan's Nippon Steel from acquiring the company, raising uncertainty about its future prospects.
In technology, Block's shares gained 6.2% following an upgrade to outperform from market perform, reflecting renewed investor interest in the company's potential for growth. JetBlue Airways' shares rose slightly by 0.4%, despite facing a $2 million fine from the Department of Transportation.
Lastly, Chewy's shares climbed by 6.2% after Wolfe Research upgraded the pet retailer to outperform, highlighting positive market sentiment surrounding the company as it continues to tap into the expanding pet care industry.
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