Thursday’s big stock stories: What’s likely to move the market in the next trading session

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., September 4, 2024.

Brendan Mcdermid | Reuters

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Here’s what CNBC TV’s producers were watching as the major averages made a stunning comeback from the day’s lows and what’s on the radar for the next session.

• Nvidia shares swung by about $10 from the session lows to the day’s high. The stock ended the day higher by 8%.
• The stock jumped as CEO Jensen Huang spoke at the Communacopia conference saying Nvidia’s key Blackwell chip is in full demand and fears of a slowdown or production problems aren’t a concern. Investors reacted to his optimism.
• The stock is still 17% from the June 20 high, but it’s up 136% so far in 2024.
• The S&P tech sector was up 3.25% on Wednesday. It is 8% from the 52-week high.

Nvidia’s year-to-date performance

• CNBC’s Mike Santoli, who always does a great job of explaining the market, made some great points. We’ll be following up on them Thursday.
• He explained that Wednesday’s roughly 154-point turnaround for the S&P 500 — from the morning’s low to the high of the day near the end of the session — had to do with rising bond yields. The Dow swung about 910 points from its low to the day’s high, while the Nasdaq Composite saw a roughly 633-point jump.
• Recently as yields have gone up, stocks have fallen.
• Because bond yields have retreated so quickly in the last few months, investors have grown nervous that they were dropping due to fears about the economy. In turn, this hurt confidence in stocks.
• Wednesday’s rise in yields, which also began in the late morning, as Santoli explained, gave a new boost of confidence to stock investors.
• The sectors that have done best in the last three months are rate-sensitive — for instance, real estate is up 18% in three months — as investors look for yield in the face of falling rates.
• Utilities are up about 10% in three months.
• Financials are up 8.6% in three months.
• Energy and communication services are the weakest S&P sectors in the last three months, respectively down 6% and 5%.

• We’ll dive back into the insurance sector after Wednesday’s drop. CNBC TV’s Contessa Brewer covers the beat. She noted the fall for Travelersdown 3.16%, and Hartford Financialdown 2.4%. W.R. Berkley dropped 2.36%, and Aon fell 1.8%.
• Brewer’s sources say it may have to do with investor concern that an election win by Vice President Kamala Harris would lead to more litigation and fewer protections for businesses. This is a big issue for insurers across the country right now. Some investors are also worried that a Harris victory would lead to less consolidation in the industry.
• The sector has been strong in the last three months.
• Progressive is up about 20% in that time.
• Aon up 17.4% in three months.
• Hanover Insurance up 15.4%.
• Arthur J. Gallagher up 15% in three months.
• Hartford Financial up 14.7% in three months.
• Willis Towers Watson is up 12% in three months.

Progressive shares over the past three months

• Jill Schneider on the CNBC desk was watching the cocoa trade Wednesday.
• The commodity was up more than 6% Wednesday. It is up 12% in a week.
• Regulators in Ghana and Ivory Coast are talking with cocoa farmers about raising what the countries pay farmers for their crops.
• Shares of Hershey fell more than 2% Wednesday.

• CNBC TV’s Phil LeBeau will be watching and waiting as 33,000 union members vote on a contract deal.
• Boeing is 40% from the Dec. 21 high.
• The stock is down 7% so far in September.

Boeing’s 2024 performance

• There was a big move for the sector Wednesday as First Solar picked up 15%. The stock is 22% from the June high.
• One reason was investors who back the industry think Vice President Harris put herself in a better position to win the election with her debate performance Tuesday evening. This set up a positive atmosphere for green energy, including solar.
• Canadian Solar was up about 12% Wednesday. Shares are 51% from their high nearly a year ago.
• Sunrun was up 11.3%. The stock is 14% from the Aug. 26 high.
• SolarEdge was up 8.5% Wednesday. It’s still 87% from its high about a year ago.
• The Invesco Solar ETF (TAN) rose 6.3%. It is 29% lower from the high it reached last September.

• The supermarket operator releases earnings Thursday morning.
• Hooks is flat since last reporting three months ago.
• CEO Rodney McMullen recently testified that the proposed merger with Albertsons would bring large savings to customers. The Federal Trade Commission is suing to block the deal, saying it would decrease competition and be bad for consumers.