Stock Market Today: AI Stocks Slide, CMG Rallies, PLTR Upgrade Surge

Marley Kayden (0:00)

Welcome to The Wrap, I'm Marley Kayden, here to take you through today's market action. Let's take a look at where the markets closed to end the day. The S&P 500 ended the session down about a half of 1%.

The Dow was higher by one tenth of 1%. The tech heavy NASDAQ 100 was the biggest laggard of the group, closing lower by just shy of 1.5%, and the small cap Russell 2000 closed just above the unchanged line. As we take a look at the leading and lagging sectors on the day, energy was higher by almost 3% after crude oil reached as high as $93 per barrel before settling just below $91. Consumer staples were higher by a little more than 2%, and financials gained just shy of 1%.

To the downside, technology was lower by 1.75%, consumer discretionary down about a half of 1%, and healthcare was lower by four tenths of 1%.

As we look at some stocks that were on the move today, AI stocks fell after a report from the Financial Times said that OpenAI's annualized revenues were closer to $50 billion at the end of September, which is well below the $70 billion previously circulated. The report said that the earlier number stemmed from attempts to align OpenAI's metrics with anthropics despite both companies calculating annualized revenue differently. And shares of Chipotle rallied 6% after another Financial Times report that said Starbucks has explored a takeover of Chipotle. It's unclear whether Starbucks has submitted any formal offer, but the report said that the deal could be the largest ever transaction in the restaurant sector which Chipotle valued at more than $41 billion. And Palantir closed higher by about almost 2.5% on the session today after Goldman Sachs upgraded shares to buy from Neutro with a $230 price target. Goldman noted that the stock's underperformance year to date means that Palantir is trading at a discount to its growth comps. The $230 price target represents about an 18% upside to its current price. As we look ahead to Friday, it's a light day for economic data, but we will get consumer sentiment, and estimates are calling for sentiment to come in at 47.5, which would be below last month's 48.1. On the earnings front, we'll get the report from Delta Airlines. Earnings are calling for adjusted EPS of about $1.93 on revenue of $17.72 billion. That's going to do it for the wrap. I'm Marley Kayden. Remember, you can tune in 24-7 to schwabnetwork.com and subscribe to our YouTube channel.