Stock Indexes Wrap: AI Products Lift Big Tech; Home Retailers, Cybersecurity Stocks Slump
4 hr 14 min ago
The Dow
International Business Machines (IBM) rose 2.1% after it said it was expanding several AI partnerships with companies including Meta and Salesforce.
Shares of Microsoft (MSFT) rose 0.9% to close just cents shy of a record high after it unveiled new tools to develop AI software during the first day of its Microsoft Build developer conference.
Apple (AAPL) rose 0.7% as the tech giant asked a New Jersey judge to dismiss the Justice Department’s antitrust lawsuit against the company.
Home Depot (HD) slipped 0.5% as earnings from competitor Lowe’s raised concerns about a prolonged slump in home-improvement spending.
The S&P 500
Tesla (TSLA) rose 6.7% after an executive said the electric vehicle maker was on track to begin delivering long-awaited semi trucks in 2026.
Eli Lilly (LLY) gained 2.7% after the company announced positive results from a phase 3 trial of a prospective Crohn’s disease treatment.
Nordson (NDSN) slumped 9.4% after trimming its full-year earnings and sales outlook.
AutoZone (AZO) shed 3.3% after the auto parts retailer’s quarterly sales fell short of Wall Street estimates.
Lowe’s (LOW) fell 1.9% after reporting first-quarter earnings declined from the year-ago period as consumers put off purchasing big-ticket items.
The Nasdaq 100
Lam Research Corp (LRCX) advanced 2.3% after the semiconductor fabrication equipment maker announced a $10 billion stock buyback authorization and a 10-for-1 stock split.
Nvidia (NVDA) ticked up 0.4% before its quarterly earnings report after the bell tomorrow.
Palo Alto Networks (PANW) slid 3.7% after offering lackluster current-quarter bookings guidance, overshadowing better-than-expected quarterly results.
Cybersecurity peers followed Palo Alto Networks lower. Zscaler (ZS) slid 2% and Fortinet (FTNT) lost 1.7%.
Eli Lilly Rises As Study Shows Omvoh Successful in Treating Crohn’s Disease
4 hr 44 min ago
Shares of Eli Lilly (LLY) were on track to close at an all-time high Tuesday as a study showed the pharmaceutical giant’s current drug for ulcerative colitis also was successful in treating Crohn’s disease.
The company reported that a Phase 3 trial of mirikizumab, sold under the brand name of Omvoh, found that patients with moderately or severely active Crohn’s disease “achieved statistically significant and clinically meaningful improvements across multiple clinical and endoscopic endpoints at one year.”
The company noted that this year it has submitted a supplemental Biologics License Application for use of mirikizumab to treat Crohn’s disease with the Food and Drug Administration (FDA) and European Medicines Agency (EMA). It added that it plans to make requests to other global regulators as well.
Eli Lilly shares, which rose 2.7% to $804 late in the session Tuesday, have increased about 38% so far in 2024, boosted by soaring global demand for weight-loss treatments.
Ether Rallies as Market Gets Optimistic About Ether ETF Approval
5 hr 42 min ago
The price of ether (ETH), which is the native cryptocurrency of the Ethereum network, rallied as much as 20% early Tuesday before giving up some of the gains amid renewed hope for the approval of spot ether exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).
The SEC recently requested that various exchanges update the 19b-4 filings related to the spot ether ETFs on an accelerated basis, CoinDesk reported. The SEC took the same step when it was considering bitcoin ETF applications last year.
Another important development was Fidelity amending its ether ETF application to remove staking rewards.
The SEC has taken issue with staking, some of which it has argued should be subject to securities laws. Regulators have sued crypto exchanges such as Binance, Coinbase, and Kraken for offering it as a service. Fidelity’s removing staking from its application is viewed as a move to put the regulator at ease with the ether ETF product.
Palo Alto Networks Slips After Offering Lackluster Revenue Forecast
6 hr 47 min ago
Shares in Palo Alto Networks (PANW) fell in intraday trading on Tuesday after the cybersecurity firm issued a lackluster current-quarter and full-year outlook.
For the fiscal fourth quarter ending in July, the Silicon Valley-based company guided revenue of $2.15 billion to $2.17 billion, with the $2.16 billion midpoint matching analysts’ forecast. It sees billings in the period, which account for deferred revenue, coming in between $3.43 billion and $3.48 billion, compared to expectations of $3.45 billion.
For the full fiscal year, the company kept its billings guidance relatively unchanged, expecting it to range from $10.13 billion to $10.18 billion, compared to its earlier forecast of $10.10 billion to $10.20 billion.
“Minor full-year FY24 guidance revisions failed to indicate a meaningful upswing in momentum, and the downstream benefit of increasing platform buy-in from large customers remains to be seen. This was echoed by lackluster guidance for the Q4 FY24 period,” Third Bridge analyst Jordan Berger told Reuters.
Shares opened nearly 7% lower but have ticked up throughout the day. They were down about 2% mid-afternoon Tuesday.
Macy’s Stock Slides Despite Q1 Results Falling Less Than Expected
8 hr 12 min ago
Shares of the iconic retailer Macy’s (M) fell in intraday trading Tuesday despite the release of a first-quarter earnings report that showed the company’s turnaround is working.
The company, which has been closing stores and cutting jobs after ending a proxy fight, reported first-quarter fiscal 2024 profit and revenue above analyst expectations.
Total revenue came in at $5 billion, just above the $4.97 billion analysts had projected, per estimates compiled by Visible Alpha, but slightly below the $5.17 billion Macy’s generated in the first quarter of 2023.
The retailer, which operates its namesake Macy’s brand along with Bloomingdale’s and Bluemercury, made just $62 million, or 22 cents per share, in profit for the quarter, less than half of the $155 million, or 56 cents per share, it made in the year-ago quarter. That was above the $47.59 million and 16 cents per share analysts had estimated, however.
Macy’s also updated its guidance for the full fiscal year, narrowing its projected net sales range to $22.3 billion to $22.9 billion, lifting the lower end from its February outlook of $22.2 billion. Comparable sales for the full year are expected to range from a 1% decline to a 1.5% increase from last year’s levels, slightly more optimistic than the 1.5% potential decline Macy’s had previously used as the low end of the range.
Shares in the company fell 1.6% and are down around 6% year-to-date.
Nordson Stock Tumbles After Company Trims Sales and Earnings Guidance
9 hr 50 min ago
Nordson (NDSN) shares fell sharply in early trading Tuesday after the industrial equipment maker trimmed its annual sales and earnings outlook amid weakness in electronics orders and agricultural challenges in Europe.
The Westlake, Ohio-based company said it now expects full-year fiscal 2024 net sales growth to come in between flat and up 2%, significantly below its prior forecast of 4% to 7% growth. Analysts had been looking for annual revenue to reach $2.77 billion, representing year-over-year (YOY) growth of around 5%.
Nordson also downwardly revised its full-year bottom line guidance, saying it now projects adjusted earnings of $9.35 to $9.75 per share, below its earlier forecast range of $10.00 to $10.50 a share.
The Nordson share price has tracked mostly higher since breaking out from a multi-month trading range in mid-December last year. However, the stock sits poised to fall back to the mid portion of the range on Tuesday following the company’s soft guidance.
If selling intensifies in coming trading sessions, investors should keep an eye on the $230 level, an area where buyers may step in near a horizontal line linking a series of price action over the past 20 months that sits in close proximity to a golden cross pattern that formed in late last year.
Nordson stock was down more than 7% Tuesday morning, plunging into negative territory.
Stocks Making the Biggest Moves Premarket
11 hr 1 min ago
Gains:
- Lam Research (LRCX): Shares of the semiconductor manufacturing equipment maker rose more than 4% after it announced its board of directors had authorized a $10 billion share buyback program and a 10-for-1 stock split.
- Coinbase Global (COIN): Shares of the cryptocurrency exchange rose more than 3% as the price of ether soared amid optimism that the Securities and Exchange Commission (SEC) may approve a spot ether ETF.
- Lowe’s (LOW): Shares of the home improvement retailer rose more than 2% after it reported better-than-expected earnings despite consumers pulling back on spending on big-ticket items.
Losses:
- Palo Alto Networks (PANW): Shares of the cybersecurity firm slid more than 6% after offering lackluster earnings guidance in a replay of last quarter’s “spending fatigue” warning that sent shares plummeting.
- JD.com (JD): Shares of the Chinese e-commerce company slumped 5% after it announced plans to raise capital through a $1.5 billion convertible note offering.
- Zoom Video (ZM): Shares of the video conferencing company slipped 2% after its current-quarter earnings guidance fell slightly short of Wall Street’s estimates.
Stock Futures Slip From Near Records
11 hr 32 min ago
Dow futures were little changed in premarket trading on Tuesday.
S&P 500 futures dipped 0.1%.
Nasdaq 100 futures were off 0.2%.
Read More: Markets News, May 21, 2024: S&P 500 Inches Up to Record Close; Ether Soars on ETF Hopes
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