S&P 500 Gains and Losses Today: Adobe Stock Falls as Guidance Blurs AI Outlook

Key Takeaways

• The S&P 500 slid 0.5% on Thursday, Dec. 12, 2024, following a report showing hotter-than-expected wholesale inflation data in November.
• Adobe shares tumbled as lackluster sales guidance provoked uncertainty about the multimedia software maker’s traction in the AI market.
• Shares of Warner Bros. Discovery surged after the media giant outlined plans to separate its linear TV business from its film studio and streaming operations.

Major U.S. equities indexes moved lower Thursday after the Producer Price Index report showed an unanticipated uptick in wholesale inflation during November.

Expectations remain high for the Federal Reserve to lower interest rates at next week’s meeting. Still, the latest sign of stubborn inflation added uncertainty around the path forward for the Fed in 2025.

The S&P 500 fell 0.5%. The Dow was also down 0.5%, while the Nasdaq dropped 0.7%, dropping back below the 20,000-point threshold it pierced for the first time during the previous session.

Adobe (ADBE) shares plunged 13.7%, the worst performance of any S&P 500 stock on Thursday, after the software provider issued lower-than-expected sales guidance. Although strong demand for artificial intelligence tools helped the company top sales and profit estimates for its fiscal fourth quarter, the revenue outlook raised concerns about Adobe’s traction in the competitive generative AI software market.

Industrial adhesive manufacturer Nordson (NDSN) also exceeded expectations with its fiscal forth-quarter sales and profits, but its shares tumbled 8.2% following underwhelming fiscal-2025 guidance. The company said a lower backlog and restrained spending by its customers contributed to its conservative outlook but noted a positive contribution from its acquisition of medical components provider Atrion.

Shares of data storage provider Western Digital (WDC) sank 5.6%. The move lower came after management said that pricing for NAND—a type of flash memory used in smartphones and solid-state drives—will likely remain under more pressure than previously anticipated.

Stocks in the steel industry came under pressure after analysts at UBS pointed to a less attractive risk/reward profile in the wake of a recent rally. Shares of Nucor (NUE) and Steel Dynamics (STLD) lost about 5% after UBS downgraded its view on both stocks.

Warner Bros. Discovery (WBD) announced plans to separate its television business from its streaming and film studios. Shares of the media giant skyrocketed 15.4% on the news. The company said it would create two distinct operating divisions: one that encompasses its global streaming platform and film studios, and another concentrated on linear TV. The company’s CEO said the restructuring will give Warner Bros. Discovery more flexibility in adapting to the shifting media landscape.

C.H. Robinson Worldwide (CHRW) shares rose 4.5% as the freight transporter held its investor day. Heading into the event, the CEO of the logistics firm stressed its transformation to a lean operating model, successful deployment of AI technology, and capacity to soften the impact of potential tariffs under the incoming presidential administration.

Shares of MetLife (MET) jumped 3.6% as the insurance giant unveiled a five-year growth plan designed to boost profits and free cash flow while lowering expenses. The firm highlighted four areas of opportunity it intends to address under its updated strategy: building on its position in group benefits, leveraging its retirement platform, growing its asset management business; and expanding in international markets.