Supermicro Soars as Probe Finds No Accounting Wrongdoing
24 minutes ago
Shares of Super Micro Computer (SMCI) soared Monday after the troubled computer server maker announced that an investigation found no misconduct in the company’s accounting practices. It also said it will be replacing its finance chief.
Shares were up 25% in midday trading, leading S&P 500 gainers. The stock is up nearly 50% for the year, outpacing the gains of the S&P 500 over the period but still down about 70% from its all-time high of around $123 set in March.
The San Jose, Calif.-based firm said its independent special committee had finished its probe and its findings "did not raise any substantial concerns about the integrity of Supermicro's senior management or Audit Committee, or their commitment to ensuring that the Company's financial statements are materially accurate."
The accounting issues came to light when the company announced earlier this year it wasn’t able to file its Form 10-K for fiscal 2024 because of the accounting questions. That led to the Nasdaq threatening to delist the firm for not adhering to market requirements. In addition, Supermicro’s auditor, EY, resigned, saying that it was “unwilling to be associated with the financial statements prepared by management.”
Supermicro said that the independent special committee concluded that EY's reasons for leaving "were not supported by the facts examined in the Review." It added that it "does not anticipate any restatements of its quarterly reports for the fiscal year 2024 ended June 30, 2024, or for prior fiscal years."
Per the panel's recommendations, CFO David Weigand will be replaced as soon as a new CFO is appointed. The company noted the board has begun the process to fill that role.
–Bill McColl
Stellantis Stock Sinks After CEO Resigns
1 hr 24 min ago
Stellantis (STLA) shares sank after the struggling carmaker said over the weekend that CEO Carlos Tavares was stepping down, effective immediately.
The company that owns brands including Chrysler, Jeep, Fiat, and Peugeot said the process to appoint his replacement was “well underway.” It added that it expects to name a new company head in 2025, and until then, an interim executive committee would handle Tavares’s duties.
Senior Independent Director Henri de Castries said in a statement that “in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”
Shares of Stellantis were recently off some 7% to their lowest point of the year. The stock has fallen nearly 50% since the start of 2024.
The automaker has been battling weak sales and tough competition, especially from China. Some dealers have complained that a focus on cutting costs and keeping prices high have kept buyers out of showrooms.
–Bill McColl
Intel Stock Rises as CEO Retires
2 hr 14 min ago
Intel (INTC) said Monday that CEO Pat Gelsinger has stepped down, effective yesterday, with Intel naming two interim leaders and starting its search for a permanent replacement.
The stock, which has lost about half its value since the start of the year, was up about 2% in early trading Monday.
Intel said it named David Zinsner, its CFO, and Michelle "MJ" Johnston Holthaus, who has been given the new title of Intel Products CEO, its co-CEOs on an interim basis.
Intel has already formed a search committee to find a permanent replacement, the company said.
–David Marino-Nachison
S&P 500 Levels to Watch as Index at Record High
2 hr 37 min ago
The S&P 500 (SPX) posted hit a new record high of 6,047 points in early trading Monday after posting its best month of the year in November.
As the index rose to all-time highs recently, the relative strength index recorded a comparatively lower higher to create a bearish divergence, a chart signal indicating slowing buying momentum.
During pullbacks, investors should watch key support levels on the S&P 500's chart around 5,870 and 5,670.
A measured move, which calculates the depth of a rising wedge near its widest point and adds that amount to the pattern’s upper trendline, forecasts a bullish price target in the index of 6,675.
Read the full technical analysis piece here.
–Timothy Smith
Stocks Kick Off December After Best Month of the Year
3 hr 36 min ago
The S&P 500 and Dow Jones Industrial Average rose 5.7% and 7.5%, respectively, in November, marking their biggest one-month gains of the year.
The Nasdaq Composite rose 6.2% last month, the best performance for the tech-heavy index since a 6.9% increase in May.
So far in 2024, the Nasdaq is up 28%, while the S&P 500 has gained 26.5% and the Dow has added 19%.
Major Stock Index Futures Little Changed
4 hr 16 min ago
Futures tied to the Dow Jones Industrial Average were down less than 0.1%.
S&P 500 futures were also down fractionally.
Nasdaq 100 futures were up slightly.
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