Stock Indexes Wrap: Alphabet, Microsoft Spur AI Rally; Intel and Oil Giants Slide
1 hr 5 min in the past
The Dow
Amazon (AMZN) surged 3.4%, boosted by earnings experiences from AI hyperscaler friends Alphabet and Microsoft.
Microsoft (MSFT) gained 1.8% after topping earnings estimates and reporting sturdy demand for its cloud companies.
Chevron (CVX) ticked up 0.3% after reporting first-quarter revenue declined about as a lot as analysts had been anticipating.
Intel (INTC) tumbled 9.2% after forecasting current-quarter income under Wall Street’s expectations. Analysts at Bank of America and Goldman Sachs lowered their worth targets on the inventory, citing its comparatively restricted share of the AI market.
The S&P 500
RedMed (RMD) led the index larger, climbing 18.9% after topping quarterly earnings estimates.
Alphabet (GOOGL) soared 10.2% to shut with a market cap of greater than $2 trillion for the primary time. It and Microsoft’s earnings experiences lifted shares of AI {hardware} suppliers Super Micro Computer (SMCI), up 8.9%, and Nvidia (NVDA), up 6.2%.
DexCom (DXCM) tumbled 9.9% regardless of beating earnings estimates; it raised the decrease finish of its full-year gross sales steering, however the midpoint remained under analysts’ estimates.
AbbVie (ABBV) slid 4.6% after warning gross sales of its blockbuster drug Humira would fall 32% within the present quarter because it loses market share to new generic options.
Phillips 66 (PSX) dropped 3.6% after it reported {that a} practically 50% decline in refining margins crimped its quarterly revenue.
ExxonMobil (XOM) shed 2.9% after reporting a larger-than-expected drop in first-quarter revenue.
Paramount (PARA) shares fell 2.2% amid experiences its board was contemplating eradicating CEO Bob Bakish because it engages in merger talks.
The Nasdaq 100
The AI rally sparked by Alphabet and Microsoft earnings lifted loads of semiconductor shares. Broadcom (AVGO) rose 3.8%, Micron (MU) gained 2.9%, and Advanced Micro Devices (AMD) climbed 2.4%.
Atlassian (TEAM) tumbled 9.6% after it stated its longtime co-CEO could be leaving the corporate.
Tesla (TSLA) slid 1.1% after federal regulators stated they had been investigating its recall of two million automobiles in December to resolve self-driving questions of safety.
ResMed Leads Among S&P 500 Gainers
1 hr 47 min in the past
ResMed (RMD) was the best-performing inventory within the S&P 500 Friday after the medical gadget maker reported better-than-anticipated gross sales and earnings in its fiscal third quarter.
The firm reported internet revenue of $300 million, or $2.04 per share, a 29% improve from the identical interval final yr. Revenue elevated 7% to $1.2 billion, pushed primarily by progress in its American and software program businesses. Revenue and revenue each exceeded analysts’ forecasts.
Gross margins widened to 57.9% from 55.3% within the year-ago quarter as a consequence of decrease freight and manufacturing prices.
ResMed shares had been up greater than 18% with about half an hour left in Friday’s session. They have gained about 26% up to now this yr.
Snap Stock Soars After Strong Advertising Sales Drive Q1 Results and Outlook
2 hr 24 min in the past
Snap (SNAP) shares jumped 26% Friday after the Snapchat proprietor launched quarterly monetary outcomes above analysts’ estimates and guided better-than-expected current-quarter earnings and income amid sturdy promoting gross sales and person progress.
In the March quarter, the Generation Z-focused firm posted adjusted earnings of three cents per share, whereas analysts had anticipated a lack of a nickel per share. Revenue of $1.19 billion, which primarily comes from promoting, swelled 21% from the year-ago interval and topped forecasts of $1.12 billion.
On the person exercise entrance, Snap reported a ten% leap in its every day lively customers from a yr earlier, taking the rely to 422 million. Moreover, it expects that quantity to extend to 431 million by the top of the present quarter, above the 430 million consensus view.
Looking forward to the June quarter, the corporate tasks income of between $1.225 billion and $1.255 billion, with the midpoint of that band coming in above the $1.22 billion Street estimate. It sees adjusted earnings within the interval starting from $15 million and $45 million, which compares to analyst expectations of $15.5 million.
Despite Friday’s positive aspects, Snap shares have misplaced about 15% of their worth this yr.
-Timothy Smith
Phillips 66’s Refining Margins Sink, Dragging Down Profits
3 hr 4 min in the past
Phillips 66 (PSX) shares dropped in intraday buying and selling Friday after the vitality producer’s quarterly revenue fell as refining margins thinned.
The firm reported first-quarter internet earnings slumped 61.9% to $748 million, with adjusted earnings of $822 million, or $1.90 per share, wanting estimates. Revenue rose 3.8% to $36.44 billion, forward of forecasts.
Phillips 66 famous that its realized refining margins dropped to $10.91 per barrel, practically half of what they had been a yr earlier. Market seize, which measures refining revenue to business requirements, fell to 69% from 93%.
Shares of Phillips 66 hit an all-time excessive earlier this month, and even with as we speak’s 3.5% decline are up about 14% year-to-date.
-Bill McColl
Inflation Higher, Stocks Higher. What Gives?
3 hr 56 min in the past
This week’s financial information did little to revive hopes of imminent price cuts—inflation remained stubbornly excessive within the first three months of the yr—and but shares had been largely within the inexperienced Friday and the S&P 500 was squarely on monitor to snap a three-week dropping streak. Why?
Disappointing quarterly outcomes have sunk a couple of shares this week however, for essentially the most half, corporations have been reporting resilient earnings. At the top of final week, with 14% of the S&P 500 having reported, the index was reporting earnings progress for the third consecutive quarter. Plus, the share of corporations beating earnings estimates and the magnitude of these beats had been each above their 10-year averages.
And big earnings beats from the likes of Alphabet (GOOGL) and Microsoft (MSFT) this week have even improved the outlook.
“Given the elevated levels of inflation…the market is going to need to get over hopes for Fed rate cuts,” wrote Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance, in a word on Friday.
“We’re still optimistic on the market, however, as we believe that rate cuts aren’t necessary for the bull market to continue. Instead, continued economic expansion and growth in corporate profits…are what will propel stock prices to new highs,” he wrote.
Though the trail larger, like inflation’s path decrease, will probably be a bumpy one, he warned. “Just be aware that volatility around the election, geopolitical events and even future inflation data is likely.”
Intel Stock Slides as Weak Guidance Outweighs Earnings Beat
4 hr 49 min in the past
Intel (INTC) inventory sank Friday as weaker-than-anticipated income steering for the second quarter overshadowed the chipmaker’s topping income and earnings estimates for the primary three months of the yr.
The firm reported a lack of $437 million, or 9 cents per diluted share, within the first quarter, an 86% smaller loss than within the year-ago quarter and higher than analyst estimates of a $454.86 million, or 13 cent-per-share, loss.
Adjusted earnings, which do not embrace gadgets comparable to share-based compensation and restructuring expenses, got here in at $759 million, or 18 cents per diluted share, additionally higher than estimates.
But the corporate forecast Q2 income would are available in between $12.5 billion and $13.5 billion, with the upper finish of that steering falling wanting the $13.79 billion consensus amongst analysts surveyed by Visible Alpha.
Intel shares had been down greater than 9% Friday afternoon, bringing their year-to-date losses to almost 37%.
-Mrinalini Krishna
ExxonMobil Stock Slips as Profit Falls Short of Estimates
5 hr 48 min in the past
Shares of ExxonMobil (XOM) slipped in early buying and selling Friday because the oil and gasoline large reported bigger year-over-year revenue declines than analysts had been anticipating.
ExxonMobil reported internet revenue $3 billion decrease than the primary quarter of 2023, falling to $8.22 billion, or $2.06 per share, from the $11.43 billion and $2.79 per share the corporate reported final yr. Analysts anticipated the decline to be smaller, projecting revenue of $8.77 billion, or $2.20 per share.
However, the overall income it reported of $83.08 billion was above analyst estimates of $82.11 billion due to elevated manufacturing from a few of Exxon’s investments like its operations in Guyana.
Despite oil costs remaining excessive, Exxon and Chevron (CVX) had been each projected to publish much less productive quarters due to decrease pure gasoline costs and slim margins on refined merchandise. Chevron additionally reported earnings Friday, coming nearer to analyst projections.
Exxon shares had been down 3.6% late within the morning on Friday. The inventory has gained 17% up to now this yr.
-Aaron McDade
Microsoft Stock Jumps On Earnings Beat Driven By Cloud Segment
6 hr 20 min in the past
Microsoft (MSFT) shares rose Friday after the corporate reported better-than-expected third-quarter earnings pushed by its cloud business.
The firm’s income for the third quarter of fiscal 2024 was $61.9 billion, above analyst expectations and a 17% improve from the year-ago interval. That progress got here from a 23% year-over-year improve in Microsoft’s cloud income to $35.1 billion.
Net revenue and diluted earnings per share (EPS) had been additionally above analysts’ estimates and grew 20% from a yr earlier.
Microsoft shares had been up greater than 3% at $411.43 Friday morning, bringing the inventory’s year-to-date achieve to just about 10%.
-Naomi Buchanan
Alphabet Reclaims Spot in $2 Trillion Club
6 hr 50 min in the past
Alphabet shares soared on Friday morning, launching the corporate into the tiny group of corporations value greater than $2 trillion.
It’s not the primary time the corporate’s achieved the milestone. Alphabet turned solely the third U.S. firm, after Apple (AAPL) and Microsoft (MSFT), to cross the $2 trillion mark throughout intraday buying and selling on November 8, 2021. However, it couldn’t maintain on to the day’s positive aspects, finally closing under the brink.
After closing Thursday with a market cap of about $1.95 trillion, the inventory must rise 2.5% on Friday to shut above $2 trillion for the primary time. With Friday’s 10% surge, Alphabet’s market worth stood at greater than $2.14 trillion, giving it a considerable buffer.
Google Parent Alphabet Jumps on Earnings Beat, First-Ever Dividend
7 hr 17 min in the past
Google guardian Alphabet (GOOGL) noticed its shares leap over 10% Friday morning after the tech large reported first-quarter outcomes properly above analysts’ expectations, in addition to plans to distribute its first-ever dividend.
Alphabet reported income rose 15% year-over-year to $80.54 billion, above analyst estimates compiled by Visible Alpha of $78.8 billion. Alphabet’s revenue of $23.66 billion, for diluted earnings per share of $1.89, beat estimates of $18.95 billion, or $1.51 per share.
For the primary time within the firm’s historical past, Alphabet’s board introduced the approval of a dividend program, with a dividend of 20 cents per share to be paid on June 17 to shareholders of file as of market shut June 10.
A large inventory buyback program was additionally introduced, with the corporate’s board approving $70 billion to repurchase shares.
After falling near 2% in Thursday session, Alphabet shares skyrocketed 10% Friday to $171, pushing the corporate’s market cap above $2 trillion.
-Aaron McDade
Stocks Making the Biggest Moves Premarket
8 hours in the past
Gains:
- Snap (SNAP): Shares of the social media firm surged 25% after it reported a return to double-digit income progress within the first quarter.
- Alphabet (GOOGL): Shares of the tech large jumped 11% after it introduced its first dividend, licensed a $70 billion buyback program, and reported blowout first-quarter earnings.
- Microsoft (MSFT): Shares climbed greater than 3% after the corporate reported better-than-expected quarterly outcomes, with cloud income rising greater than 20% from the prior yr.
Losses:
- Intel (INTC): Shares of the chipmaker tumbled 8% after its current-quarter income steering fell wanting Wall Street’s expectations, overshadowing better-than-anticipated earnings.
- Atlassian (TEAM): Shares of the enterprise software program maker fell greater than 7% after the corporate stated longtime co-CEO Scott Farquhar would step down.
- ExxonMobil (XOM): Shares of the oil large slid 2% after reporting revenue declined greater than analysts had been anticipating within the first quarter, with decrease pure gasoline costs and slimmer refinery margins.
Stock Futures Climb Ahead of Inflation Data
8 hr 54 min in the past
Futures contracts linked to the Dow Jones Industrial Average had been up 0.2% in premarket buying and selling on Friday.
S&P 500 futures had been 0.8% larger.
Nasdaq 100 futures rose 1% about an hour earlier than markets opened.
