Equity Indexes Wrap: Tech Stocks Drag Down Indexes While Semiconductors Tick Up
10 hr 34 min ago
The Dow
Industrials gained as investors went risk off. 3M (MMM) added 1.9% and Caterpillar (CAT) climbed 1.4%.
JPMorgan Chase (JPM) rose 1.4% after it reported credit card delinquencies fell in February.
The Dow’s tech components led the index lower Friday. Salesforce (CRM) slipped 3%, while Amazon (AMZN) fell 2.4% and Microsoft (MSFT) gave up 2.1% after closing at a record high yesterday.
McDonald’s (MCD) shed 0.9% amid reports of widespread tech outages affecting the fast food chain.
Apple (AAPL) dipped 0.2% after it said it would pay nearly $500 million to settle allegations CEO Tim Cook misled investors with statements in 2019 about iPhone demand in China.
The S&P 500
Steel Dynamics (STLD) gained 4.3% after forecasting a first-quarter profit that exceeded Wall Street’s expectations.
Valero (VLO) rose 2.7% after Bank of America upgraded the stock to buy, citing an improved outlook for the U.S. refining ecosystem.
Jabil (JBL) dropped 16.4% after the electronics manufacturing services firm’s quarterly sales fell short of estimates, as did its current-quarter guidance.
Ulta Beauty (ULTA) fell 5.2% after forecasting profitability would take a hit this year amid higher supply chain costs and more promotions.
Software companies slipped, led by ServiceNow (NOW), down 4.7%, and Intuit (INTU), down 3.8%.
Uber (UBER) slid 2% after it said it would cease operations in Minneapolis on May 1 after the city council passed a new minimum wage law covering ride-share drivers. Lyft (LYFT), which will also leave the Twin Cities, lost 3.3%.
The Nasdaq 100
CoStar Group (CSGP) led the index, rising 8.3%.
Semiconductor stocks rebounded from yesterday’s slump. Advanced Micro Devices (AMD) rose 2.1%, Micron (MU) added 2%, and Marvell Technology (MRVL) advanced 1.2%.
Tesla (TSLA) ticked up 0.7% after three consecutive days of losses.
Adobe (ADBE) shares tumbled 13.8% after it forecast weaker-than-expected current-quarter sales despite topping revenue estimates in the most recent quarter.
Nvidia (NVDA) ticked down 0.1% ahead of its annual graphics processing unit tech event, Nvidia GTC, next week.
Steel Dynamics Stock Hits a Record High on ‘Meaningfully Stronger’ Profitability
11 hr 9 min ago
Steel Dynamics (STLD) shares soared to a record high after the steel maker reported much better-than-expected guidance on booming demand.
The company predicts current quarter earnings per share (EPS) of $3.51 to $3.55, while analysts were looking for $3.32. Steel Dynamics said it anticipates profitability from its steel operations to be “meaningfully stronger” than its fourth quarter results.
While the company will give more details in its first quarter financial report on April 23, it pointed to increased shipments and earnings driven by the company’s flat-rolled steel operations as fueling growth.
Based on its “continued confidence in its earnings outlook and cash flow generation,” it had repurchased $279 million, or 1.4%, of its stock in the first quarter through March 11, the company said.
Shares of Steel Dynamics have added more than a third of their value in the past year.
Madrigal Pharmaceuticals Soars After Getting FDA Approval for Liver-Scarring Treatment
11 hr 58 min ago
Shares of Madrigal Pharmaceuticals Inc. (MDGL) skyrocketed Friday after the Food and Drug Administration (FDA) gave accelerated approval for its drug, the first-ever drug to treat scarring caused by fatty liver disease approved by the regulator.
The FDA said Madrigal’s drug Rezdiffra, along with diet and exercise, can be given to patients who are afflicted with noncirrhotic nonalcoholic steatohepatitis, or NASH, and have moderate to advanced liver scarring.
The biotech company said that Rezdiffra was expected to be available to patients in the U.S. next month and be distributed through a limited specialty pharmacy network.
Shares of Madrigal Pharmaceuticals were 14% higher at around $277 Friday afternoon. They have advanced by almost 30% so far this year.
Jabil Stock Plunges as Sales and Guidance Miss Estimates on ‘Revenue Headwinds’
13 hours ago
Jabil Inc. (JBL) was the worst-performing stock in the S&P 500 on Friday after the electronics manufacturing services firm’s second-quarter fiscal 2024 sales and current-quarter guidance missed estimates as it faced difficult economic conditions.
Jabil said that quarterly revenue declined 16.8% to $6.77 billion, short of forecasts. Core earnings per share (EPS) came in at $1.68, slightly better than expected.
Jabil anticipates current-quarter revenue of $6.2 billion to $6.8 billion, and core EPS of between $1.65 and $2.05. Both were less than analysts had been looking for. In addition, the company lowered its full-year revenue guidance to $28.5 billion from $30.6 billion.
Jabil shares were down 16.2% at $123.63 Friday afternoon. Despite today’s steep drop, the stock is up more than 50% over the past year.
Real Estate Stocks Tumble on NAR Settlement
13 hr 38 min ago
Shares of real estate firms like Zillow (Z), Redfin (RDFN), and Compass (COMP) tumbled on Friday after the National Association of Realtors (NAR) agreed to a $418 million settlement that could upend the way real estate brokers are compensated.
As part of the settlement, NAR agreed to abandon longstanding rules that required home listings to include offers of broker compensation. In October, a Kansas City, Mo., jury determined that practice had kept U.S. real estate broker’s commissions artificially high.
The agreement also introduces a new rule that requires Multiple Listing Service (MLS) participants to enter written agreements with buyers, effectively allowing buyers to negotiate with their agents and forgo some services.
The $418 million settlement, which is subject to court approval, will be paid out over four years.
Shares of digital home-listing provider Zillow tumbled more than 13% to a 3-month low on Friday. Brokerages Compass and Redfin slid 11% and 5%, respectively.
Volatility Index Up on First Triple Witching Day of 2024
14 hr 12 min ago
The Cboe Volatility Index (VIX) rose more than 4% on Friday, the first of this year’s four triple witching days.
Triple witching refers to the simultaneous expiration of stock options, stock index options, and stock index futures contracts. It occurs on the third Friday of every March, June, September, and December.
Triple witching days are characterized by above-average volatility in equity markets as traders either close or roll out their positions.
About $5 trillion worth of derivatives contracts expire today. More than $3 billion of index options and futures came due at the open. That leaves room for more volatility near the end of the day when about $2 trillion of single stock options and index derivatives will expire.
Ulta Beauty Stock Falls on Weak Margin Forecast
15 hr 13 min ago
Ulta Beauty’s (ULTA) stock fell Friday, a day after the beauty retailer reported fourth-quarter earnings that beat expectations but issued a weak margin forecast for 2024.
Ulta reported $394.4 million in net income, or diluted earnings per share (EPS) of $8.08, both above analyst estimates compiled by Visible Alpha.
For the 2024 fiscal year, Ulta projected net sales of $11.7 billion to $11.8 billion and diluted EPS of $26.20 to $27, above 2023 figures and analyst estimates. However, Ulta said it anticipates a lower profit margin of 14% to 14.3%, compared to 15% in 2023, with margins pressured by higher costs and increased promotions.
Ulta shares were down 5.5% at $535 late Friday morning, though they were up more than 9% year to date.
Ether Slips from Highs as Investors Lock in Profits After Upgrade
15 hr 59 min ago
Ether (ETH), the native coin of the Ethereum blockchain and second largest cryptocurrency by market capitalization, fell to about $3,700 early Friday morning, days after the network completed its highly anticipated Dencun upgrade, indicating investors may have already factored in the news.
The enhancement, which aims to improve the Ethereum ecosystem’s cost-effectiveness, added to bullish sentiment surrounding Ether, helping propel the cryptocurrency through the $4,000 level earlier this week.
Investors have also been hoping that the U.S. Securities and Exchange Commission (SEC) will approve an Ether ETF application filed by asset manager BlackRock on May 23, though Bloomberg ETF analysts estimate the chances of an approval by that date at just 30%.
Ether started its current bull run in late October last year, with the uptrend gaining further momentum when the 50-day moving average crossed above the 200-day moving average just over a month later to form a bullish golden cross chart pattern. Gains accelerated throughout February and early March before the price ran into resistance earlier this week just above the closely watched $4,000 level.
Amid ongoing selling pressure, monitor key Fibonacci retracement levels as potential areas of support. Currently, the 38.2% Fib level sits around $3,365, while the 50% Fib level lines up with the $3,135 region.
Adobe Stock Tumbles After Reporting Record Quarterly Revenue, Soft Guidance
16 hr 50 min ago
Adobe (ADBE) shares tumbled Friday morning after the company beat first-quarter earnings estimates, but issued soft guidance for the second quarter.
The company reported first-quarter revenue for fiscal 2024 of $5.18 billion. This record high exceeded analyst estimates compiled by Visible Alpha and represented 11% year-over-year growth.
Adobe’s net income for the quarter at $2.05 billion also beat analysts’ expectations and was up from the previous quarter and year-ago period. Diluted earnings per share (EPS) at $4.48 surpassed projections and grew from the quarter and year prior as well.
The company said it expects revenue in the second quarter of between $5.25 billion and $5.3 billion. However, analysts had anticipated guidance at the higher end of this range at $5.3 billion.
Adobe shares dropped more than 13% to $493 Friday morning. Still, the stock has gained about 47% in the past year.
Stocks Making the Biggest Moves Premarket
17 hr 34 min ago
Gains:
- Madrigal Pharmaceuticals Inc. (MDGL): Shares of the biopharmaceutical company jumped more than 20% after the FDA approved its treatment of liver inflammation associated with obesity.
- Vodafone Group Plc (VOD): Shares of the British telecom jumped more than 5% after it agreed to sell its Italian business to Swisscom AG.
- Rivian Automotive Inc. (RIVN): Shares of the electric truck maker rose more than 3% after an analyst at Piper Sandler upgraded the stock to buy, citing its attractive valuation and new vehicle platform.
Losses:
- Adobe Inc. (ADBE): Shares of the design software maker tumbled 11% after it beat earnings expectations but offered soft current-quarter sales guidance.
- Jabil Inc. (JBL): Shares of the electronics manufacturing company fell more than 10% after it also forecast weaker-than-expected revenue in the current quarter
- Ultra Beauty Inc. (ULTA): Shares of the beauty retailer slid 8% after it forecast lower-than-expected full-year earnings as higher costs weigh on margins.
Stock Futures Little Changed
18 hr 21 min ago
Futures contracts connected to the Dow Jones Industrial Average were up about 0.2% in premarket trading on Friday.
S&P 500 futures rose about 0.1%.
Nasdaq 100 futures were down 0.1% from Thursday’s close about an hour before markets opened.
