Important points
Natural gas prices soared in response to forecasts of cold winter waves, pushing up the stock prices of EQT and other natural gas companies.
Major US stock indexes also fell at the start of the holiday-shortened trading week, as the positive momentum that lifted stock markets in 2024 failed to carry over into the penultimate trading session of the year.
On Monday, the S&P 500 fell 1.1%. The Dow Jones Industrial Average closed 1% lower, and the tech-heavy Nasdaq fell 1.2%.
Super Micro Computer (SMCI) stock fell 4.1%, the largest decline among the S&P 500 stocks. The server maker’s stock has been very volatile this year as hopes for opportunities in artificial intelligence (AI) were offset by accounting issues and delays in the company’s annual report. Supermicro received an extension of its filing deadline from the Nasdaq exchange, reducing the immediate threat of delisting, but concerns remain about whether it will be able to remain in compliance with the exchange’s rules.
ON Semiconductor (ON) stock fell 3.9%. Unlike many of its peers in the semiconductor industry, which posted outsized AI-driven gains in 2024, ONCEMI’s stock price fell about 24% over the year. Weakness in integrated circuit manufacturers’ end markets, particularly in North America and Europe, is weighing on stock prices. But the company could be positioned to grow with utility-scale solar power, China’s battery electric vehicles, and intelligent sensors used in AI data centers.
Tractor Supply Company (TSCO) stock fell 3.6% as the rural lifestyle retailer completed its acquisition of online pet pharmacy Alibet. The deal, first announced in October, reportedly expands Tractor Supply’s total addressable market by $15 billion, including the distribution of branded veterinary drugs through automated delivery and the provision of professional drug advice. A series of services aimed at making it easier to own a pet will be added, such as providing services such as: Monday’s decline reversed gains in Tractor Supply stock following the company’s 5-for-1 stock split that took effect Dec. 20.
Shares of Lamb Weston Holdings (LW), a provider of frozen potatoes and french fries, fell 3%. Monday’s decline follows reports that activist investor Jana Partners is working with another former executive in pushing for changes to Lamb Weston’s board and operations. The price increase has been reversed.
Natural gas futures prices soared more than 15% as forecasts for below-average January temperatures in various parts of the United States and Europe boosted demand expectations for the primary heating fuel. Shares of natural gas exploration and pipeline operator EQT Corp. (EQT) rose 5.1%, securing the top performance in the S&P 500.
Other companies with exposure to natural gas dominated the remaining list at the top of the benchmark index. Shares of Coterra Energy (CTRA) and Devon Energy (DVN) rose 3.6% and 2.5%, respectively.
