U.S. Markets React to PPI Data as Mixed S&P 500 Movements Highlight Industry-Specific Gains and Losses

Vijay Singh
4 Min Read

Major U.S. equity indexes delivered mixed results on Tuesday following the release of a softer-than-expected Producer Price Index (PPI) report for December. The data, reflecting a lighter uptick in wholesale prices, offered some relief about inflation ahead of the highly anticipated Consumer Price Index (CPI) report scheduled for Wednesday morning.

Key Index Performance

  • S&P 500: Gained 0.1%, closing virtually flat after oscillating throughout the trading session.
  • Dow Jones Industrial Average: Rose 0.5%, buoyed by strong performances in industrial stocks.
  • Nasdaq Composite: Fell 0.2%, marking a slight pullback for the tech-heavy index.

Top Movers in the S&P 500

United Rentals Rides High on $4.8 Billion Acquisition Deal

United Rentals (NYSE: URI) emerged as the S&P 500’s top gainer, climbing 5.9% after announcing its $4.8 billion acquisition of H&E Equipment Services (NASDAQ: HEES). The deal, expected to expand United Rentals’ market presence, also sent H&E shares soaring as they more than doubled in value. Analysts view the acquisition as a strategic move to enhance United Rentals’ core operations and capacity in critical U.S. regions.

Celanese Stock Upgraded by Bank of America

Shares of Celanese Corporation (NYSE: CE) surged 5.4% following an upgrade by Bank of America from “underperform” to “buy.” The investment bank highlighted the chemical manufacturer’s strong valuation and optimistic forecasts for recovery in the acetyls market, particularly in India. Analysts also praised Celanese’s free cash flow as a key driver for addressing its debt leverage challenges.

Vistra Continues Winning Streak

Vistra (NYSE: VST) added 5.2%, continuing its remarkable momentum after gaining over 250% in 2024. Zacks Equities Research spotlighted Vistra as its “bull of the day,” emphasizing the electricity generator’s potential to meet energy demands from AI data centers. Analysts predict an acceleration in the company’s earnings growth, building on an already robust performance.

GE Vernova Boosted by Positive Price Target Update

GE Vernova (NYSE: GEV) shares climbed 4.2% after Bank of America raised its price target for the energy equipment maker. The company, which spun off from General Electric last year, has benefited from strong pricing trends in the gas turbine market. Analysts maintain a positive outlook on GE Vernova’s role in the energy transition sector.

Major Decliners

Eli Lilly Cuts Revenue Outlook

Eli Lilly (NYSE: LLY) shares dropped 6.6%, the steepest decline in the S&P 500, after the pharmaceutical giant reduced its full-year revenue guidance. Despite heavy investments to boost production of diabetes and weight-loss drugs like Mounjaro and Zepbound, the company flagged potential shortfalls in meeting high market expectations.

Charles River Laboratories Disappoints with Earnings Forecast

Charles River Laboratories (NYSE: CRL) fell 6.3% after issuing preliminary 2025 earnings guidance that underwhelmed investors. The research firm forecasted flat-to-slightly-improving demand from biotech firms, with limited momentum from large pharmaceutical clients. Analysts from JPMorgan and Bank of America reiterated neutral ratings, citing tempered growth prospects.

Las Vegas Sands Downgraded by Morgan Stanley

Las Vegas Sands (NYSE: LVS) declined 4% following a downgrade by Morgan Stanley to “equal weight.” Analysts cited slowing customer growth in Singapore and cautious economic forecasts for China as factors weighing on the casino operator’s outlook.

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