What Recession? S&P 500 Rockets to New High

s&p 500 stock market all time high

The stock market crushed it again today, with the S&P 500 clipping an all-time high at 2,958, before dropping a tad to close at 2,954. Image from Shutterstock.

The stock market crushed it again today, with the S&P 500 clipping an all-time high at 2,958, before dropping a tad to close at 2,954.

With fears of a recession fading and the prospect of a rate cut from the Fed, investors are plowing money back into the stock market.

Today’s Top Winner in the S&P 500

The day’s top winner in the S&P 500 was Oracle, the legendary software company, which crushed earnings estimates after the close yesterday. Oracle ended the day by increasing $4.31 to $56.99, up 8.2%.

Oracle delivered a quarterly profit of $1.16 per share, beating analyst estimates of $1.07.

Oracle is one of the few companies from the 90’s that managed to reinvent and reinvigorate itself. Its cloud application business breathed new life into a company that was in danger of becoming moribund like IBM.

Instead, Oracle generated an astonishing $40 billion in revenue in 2018, with two-thirds of it coming from its cloud business.

Co-CEO Safra Catz pointed out that:

“Our high-margin Fusion and NetSuite cloud applications businesses are growing rapidly while we downsize our low-margin legacy hardware business…”

Today’s #2 Winner in the S&P 500

The second best S&P 500 performer of the day was Noble Energy, rising $1.26 or 6.15 percent, to $21.75.

Noble Energy acquires, explores, develops, and produces both crude oil and natural gas all over the world. The 87-year-old independent energy company had struggled to recover from the oil price crash a few years ago.

Things have improved over the past two years, though, with Noble Energy generating a billion dollars in operating profit.

Today’s move, however, was due to the spike in oil prices. The black gold surged about 6 percent thanks to tensions between the US and Iran, after Iran apparently shot down a US drone in international airspace.

Today’s #3 Winner in the S&P 500

The third place winner in the S&P 500 today was Halliburton, up $1.07, or 4.9 percent, to $22.88. In fact, nine of the top 11 S&P 500 stocks today were in the energy sector.

The spike up in oil prices is a welcome relief to most energy companies. Halliburton itself saw revenue cut almost in half during the oil price crash in 2016.

A $4.11 per share profit in 2014 evaporated to a $0.79 per share loss in 2015, followed by a devastating crash to a loss of $6.69 per share in 2016.

Yet Halliburton is on the mend. 2017 saw a loss of only $0.53 per share, and the company turned a profit of $1.89 per share last year.

Most energy companies like Halliburton carry billions in debt. A disruption in oil prices can wreak havoc with cash flow, threatening a debt default.

Halliburton stock remains near 5-year lows.


Last modified: September 23, 2020 12:47 PM
Lawrence Meyers has published over 2,500 articles on finance and policy at outlets including Breitbart.com, Investorplace, WyattResearch, LearnBonds, Lifezette.com, TownHall.com, U.S. News & World Report, and The New York Observer. He hails from New York City in the USA.
Previous Billionaire Investor Mistakenly Believes Stock Market Is Fairly Valued Next NY Times Is Wrong on Facebook, Libra Poses No Systemic Economic Risk