Wall Street was heading toward the closing bell Tuesday with stocks broadly higher, as technology shares helped lead the advance and Treasury yields eased from earlier levels.
As of the latest market data I found, the S&P 500 was up roughly 1.4%, the Dow Jones Industrial Average about 0.7%, and the Nasdaq Composite approximately 1.7%. [cot-trading.com]
Treasury yields remained an important part of the day’s story. The 10-year yield had climbed above 5.3% earlier in the session before moving lower Tuesday afternoon. [thestreet.com]
But one of today’s biggest individual stories wasn’t really about technology stocks at all. It was about where all those data centers are going to get their electricity.
💎 Diamond of the Day: Constellation Energy (CEG)
Constellation Energy is an easy choice for today’s Diamond after announcing a major long-term power agreement with Google.
Under the agreement, Google entered into a 20-year power purchase agreement covering 890 megawatts of additional nuclear capacity created through upgrades at 11 existing Constellation Energy nuclear units in Illinois, Pennsylvania and New Jersey. A separate 15-year agreement covers another 2,700 megawatts from Constellation Energy’s existing fleet. [finance.yahoo.com], [finance.yahoo.com]
Constellation Energy plans to invest more than $4.3 billion to deliver the nuclear upgrades. [finance.yahoo.com]
Investors certainly noticed. Shares were trading around 12% higher late Tuesday, at roughly $300, according to the latest market-mover data available. [cot-trading.com]
Why It Shined
- Google and Constellation Energy announced a long-term agreement involving 890 MW of additional nuclear capacity. [finance.yahoo.com]
- The arrangement also includes a separate 15-year, 2,700 MW supply agreement involving the existing fleet. [finance.yahoo.com]
- Constellation Energy expects to invest more than $4.3 billion in the planned upgrades. [finance.yahoo.com]
- Constellation Energy shares were up approximately 12% late in Tuesday’s session. [cot-trading.com]
🐕 Dog of the Day: Seagate Technology (STX)
For the Dog, I would go with Seagate Technology, a well-known company with a meaningful move rather than reaching for one of today’s much smaller biotechnology names.
Seagate Technology was down approximately 9.7% late Tuesday, continuing weakness in data-storage shares. [weeklytrader.io]
Published market coverage associated today’s weakness in Seagate Technology and Western Digital with continuing investor concerns surrounding reported Toshiba hard-disk capacity expansion. [weeklytrader.io]
Why It Barked
- Seagate Technology shares were down approximately 9.7% late Tuesday. [weeklytrader.io]
- Western Digital was also among the session’s notable storage-sector decliners, down roughly 7.4% in the cited market data. [premarketprice.com]
- Market coverage continued to focus on concerns surrounding reported competitive capacity expansion by Toshiba. [weeklytrader.io]
As we’ve done before, I’d say the decline occurred amid those concerns, rather than asserting that one particular news item definitively caused the stock to fall.
Important Disclosure
This communication is provided solely for informational and educational purposes and should not be considered a recommendation or solicitation to buy, sell, or hold any security, sector, or investment strategy. The “Diamond” and “Dog” designations reflect notable intraday market performance or publicly reported developments and are not intended as investment advice or an assessment of future performance. Intraday prices and market conditions can change before the close. Past performance does not guarantee future results. Investing involves risk, including possible loss of principal.