In a day marked by significant market movements, Boot Barn surprised investors by guiding for third-quarter earnings per share of approximately $2.43. This figure outstripped analysts' expectations of $2.05 as polled by FactSet. Managed care stocks also witnessed an uptick following the U.S. government's proposal to increase the 2026 reimbursement rates for Medicare Advantage plans by an average of 4.3%. Conversely, the tech sector faced turbulence as several companies experienced notable declines.
Managed care stocks saw gains after the U.S. government proposed a 4.3% boost to Medicare Advantage plans' reimbursement rates. This development provided a positive outlook for the sector amid ongoing healthcare policy discussions.
On the downside, quantum computing stocks faced a challenging session. Rigetti Computing saw its shares tumble 25%, while D-Wave Quantum dropped around 16%. IonQ and Quantum Computing also faced declines of 8% and 9%, respectively. Analysts at Jefferies described the sector's growth as "underwhelming," leading to lowered revenue and EBITDA forecasts for the 2025 fiscal year.
Megacap tech stocks were not spared from Monday's sell-off, exacerbated by rising U.S. Treasury yields. Nvidia, Tesla, and Palantir Technologies each experienced a 3% decline, while Broadcom and Micron Technology slipped around 2%. The tech sector's performance continued to be affected by macroeconomic factors impacting investor sentiment.
Retail stocks presented a mixed picture. Abercrombie & Fitch shares fell 11% in premarket trading despite raising its fourth-quarter outlook based on robust holiday sales expectations. Meanwhile, Lululemon provided a positive update, boosting its guidance for fourth-quarter sales and earnings per share. The company's shares rose over 3% following strong holiday demand.
Macy's delivered a less optimistic update on its fourth-quarter guidance, leading to a 2% drop in shares. The retail giant's announcement contributed to concerns about consumer spending patterns during the holiday season.
In contrast, Howard Hughes Holdings experienced a significant boost with a 9% surge in its stock price after Bill Ackman's Pershing Square proposed a merger deal with the real estate company. This announcement added a layer of intrigue to the real estate sector's ongoing developments.
The healthcare sector saw Intra-Cellular Therapies soar nearly 34% after Johnson & Johnson announced plans to acquire the neurological treatment company for $132 per share. This acquisition is set to bolster Johnson & Johnson's portfolio in the neurological treatment space.
However, not all news was positive. Moderna saw its shares plunge 20% following a reduction in its 2025 sales guidance by approximately $1 billion, citing potential headwinds in the upcoming year. The company now anticipates fourth-quarter net sales growth between 7% and 8%, slightly up from its previous forecast of 5% to 7%.