In This Article:
Maddie Meyer / Getty Images
Key Takeaways
-
The S&P 500 fell 0.8% on Monday, Feb. 3, as investors reacted to tariffs on major U.S. trading partners while awaiting key earnings and labor market data.
-
Moderna shares extended losses posted last week after Goldman Sachs downgraded the vaccine maker's stock, citing high expenses and an uncertain revenue outlook.
-
Shares of IDEXX Laboratories surged as the veterinary diagnostics provider topped quarterly forecasts, buoyed by its Companion Animal Group segment.
Major U.S. equities indexes moved lower to start February trading after U.S. President Donald Trump declared over the weekend that he will impose tariffs on imports from key trading partners Canada, Mexico, and China. However, stocks bounced off their morning lows as Trump announced that tariffs against Mexico would be delayed for a month.
While international trade relationships dominated the headlines, the new trading week will also bring earnings reports from major names like Amazon (AMZN) and Google parent Alphabet (GOOGL), as well as a stream of labor market data culminating with Friday morning's release of the January jobs report.
The S&P 500 lost 0.8% on Monday. The Dow recovered from steeper losses in the morning to end the session down 0.3%, while weakness in the tech sector weighed on the Nasdaq, which fell 1.2%.
Shares of Moderna (MRNA) tumbled 7.3%, losing the most of any stock in the S&P 500. Monday's decline extended losses posted late last week when Goldman Sachs downgraded the biotech firm's stock to "neutral" from "buy." The downgrade came after the vaccine maker reduced its product revenue guidance for the second time in six months, leading analysts to believe that Moderna has limited visibility into the sales trajectory of its respiratory vaccine business. Goldman's team also predicted that, given elevated operating expenses, Moderna will not break even on a cash basis until 2029, beyond the company's updated 2028 target.
Franklin Resources (BEN) shares fell 6.9%, giving back some of the strong gains posted last week after the investment management firm posted better-than-expected profits for its fiscal first quarter. Despite the strong bottom-line performance, revenue fell short of estimates, and Franklin reported a decline in assets under management (AUM), reflecting an impact from elevated net outflows. Bank of America slightly raised its price target on Franklin Resources shares to account for updated earnings estimates, but analysts maintained their "underperform" rating on the stock.