Constellation Sells Stake in Modelo Parent Company

On August 15, 2024, the stock market experienced a notable rally, with the S&P 500 and Nasdaq 100 both erasing their losses for the month. This marks the sixth consecutive positive session for the S&P 500, a trend that began following lower-than-expected initial jobless claims last week. The improved labor market data alleviated fears stemming from a disappointing July jobs report, contributing to the market's upward momentum. Analysts had anticipated that the market's recovery would hinge on favorable economic indicators, and Thursday's reports delivered just that. A cool consumer price index report, coupled with strong retail sales and jobless claims data, provided a clean sweep of better-than-expected numbers, further boosting investor confidence. In a notable development, Elliott Management has dissolved its approximately 500,000-share stake in Constellation Brands, a company previously endorsed by the hedge fund. While Constellation has made significant improvements in corporate governance and strategic discipline, the loss of Elliott's backing is seen as a setback. The company has not yet commented on whether its cooperation agreement with Elliott has been terminated. Looking ahead, the only major earnings report for the week is from Applied Materials, a key player in the semiconductor capital equipment sector. This report is expected to provide valuable insights into the current state of the chip industry, as investors remain attentive to market trends and economic indicators.