Supermicro Stock Jumps, Enphase Energy Falls

Key recommendations

• The S&P 500 rose 1.2% on Monday, September 9, 2024, recovering from last week’s selloff as inflation returns to the spotlight with Wednesday’s CPI report.

• Shares of Supermicro rose after a report from GlassHouse Research downplayed concerns about the server maker’s accounting processes.

• Airline stocks rose as BofA analysts highlighted positive industry trends, including capacity improvements and lower fuel costs.

Major U.S. stock indexes rose on Monday, recovering some of last week’s steep losses amid signs of a slowing job market.

In the new trading week, inflation is likely to come back into focus. Wednesday’s Consumer Price Index (CPI) release will provide the last major indicator of price pressures ahead of the Federal Reserve’s policy meeting next week.

The S&P 500, Dow Industrials and Nasdaq posted almost identical daily gains, with all three indexes ending Monday’s session about 1.2% higher.

The shares of Super Micro Computer (SMCI) rose 6.1%, beating Monday’s best performance in the S&P 500. The stock has come under pressure recently as short seller Hindenburg Research raised alarms about the server and data storage provider’s accounting practices . But a report released Monday by GlassHouse Research, a forensic accounting firm that specializes in identifying fraudulent activities by public companies, played down Hindenburg’s concerns.

Airline stocks rose on positive comments on the air travel industry from BofA Securities. According to analysts, airlines are set to benefit from moderate domestic capacity, stable demand and low fuel costs. BofA also updated JetBlue (JBLU) stock to “neutral,” citing the carrier’s progress on its strategic initiatives, and JetBlue shares rose 7.2 percent. United Airlines (UAL) shares rose 6% on the day, while Delta Air Lines (DAL) and American Air Lines (AAL) both advanced by 3.9%.

Shares of HR software provider Paycom Software (PAYC) increased by 5.8%. With Monday’s strong performance, the stock bounced back from a series of losses last week amid reports that CEO Chad Richison sold more than $600,000 worth of the company’s stock. In its most recent earnings report, released in late July, recurring revenue growth helped Paycom beat profit expectations, prompting the company to raise its full-year guidance and boost its share buyback plan .

Enphase Energy (ENPH) shares fell 5.2%, the biggest loss among all components of the S&P 500. Although analysts indicated that interest rate cuts could benefit the solar technology company’s international expansion plans, Enphase stock remains down more than 20% in 2024.

The story continues

human (HUM) shares fell 3.9% after investment bank Leerink Partners highlighted risks to the “star ratings” of certain health care plans run by the insurer. Ratings assigned by the Centers for Medicare and Medicaid Services affect insurance providers’ eligibility for quality bonuses.

Shares of fragrance and personal care retailer Bath & Body Works (BBWI) shares fell 3.7%. Shares have been under pressure since the company cut its sales guidance in late August, citing difficult consumer spending trends.

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