The Daily Breakdown takes a closer look at C-suite shakeups as Intel’s CEO and Stellantis’ CEO both step down from their roles. Who’s next?
Tuesday’s TLDR
- Intel, Stellantis CEOs step down
- AT&T’s new outlook
- Coca-Cola…bull or bear?
What’s happening?
We’re seeing a lot of management shakeups and C-suite changes lately. Just yesterday, two notable changes made headlines as Intel CEO Pat Gelsinger retired and as Stellantis CEO Carlos Tavares resigned.
Intel stock finished lower by just 0.5%, while shares of Stellantis fell over 6%.
It’s worth noting that Zscaler reported earnings last night, and despite what was a pretty good report overall, shares are lower this morning. To some degree, part of the decline is likely tied to CFO Remo Canessa announcing his retirement, too.
If I had to guess, these three won’t be the last notable management changes before year-end. And when it comes to the impact on stock prices, that’s just an unknown investors will have to live with (like they always have).
In the first two examples — Intel and Stellantis — notice how poorly their stocks had traded this year. Coming into Monday, they were down 52.2% and 42.7%, respectively. The fall for Stellantis has been particularly painful, given that shares roared to all-time highs in March.
Under these realities though — and particularly as the stock market continues to knock out new record highs — management shakeups for underperforming companies can’t come as too much of a surprise.
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The setup — Coca-Cola
Coca-Cola shares have struggled lately, down about 13.5% from its high in early September. Now the charts have something for both the bulls and the bears.
That’s as KO broke below the $64 area, losing a key level of support as well as the 200-day moving average.
Bears
Working in the bears’ favor is the fact that KO stock has already broken below support. It even tried to regain this key area, but topped near $65 and slipped lower once again. Traders who do not feel optimistic about Coca-Cola could stay bearish so long as shares stay below that recent high near $65.
For options traders, puts or bear put spreads could be one way to speculate on resistance holding and for further downside to ensue in KO stock.
Bulls
Bulls might become a bit more confident if KO shares are able to regain the key $64 area and take out the recent high near $65. Above $65 could put a larger move back in play, while the recent lows could serve as their stop-loss.
For options traders, calls or bull call spreads could be one way to speculate on a rally in KO — particularly if the stock is able to regain the key $64 to $65 area.
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What Wall Street is watching
SPX500 – The S&P 500 made its 54th all-time high so far in 2024. It’s one of the best stretches for the market when it comes to the number of new highs it’s made in a year and the best year in that regard since 2017.
T – Shares of AT&T are trading higher after the firm announced an expanded buyback program and a brighter-than-expected outlook for 2027, saying it expects double-digit adjusted earnings growth and free cash flow of more than $18 billion. However, some of the near-term outlook isn’t as rosy.
SMCI – Super Micro Computer stock roared higher on Monday after “the company’s independent special committee found no evidence of misconduct by management or the board of directors.” While accounting and filing worries still persist, the firm will look for a new CFO and a new chief compliance officer.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.