Tech stocks charged higher Friday, putting the Nasdaq just below 16,000 and propelling the S&P 500 to a fresh record.
The Nasdaq Composite rose 1.3% Friday to close just 10 points shy of 16,000, a level it reached in intraday trading before retreating slightly. The S&P 500 climbed 0.6% and closed above 5,000 for the first time. The Dow Jones Industrial Average slipped 0.1% to close at 38,671.69, just narrowly avoiding a weekly decline. The Nasdaq and S&P 500 gained 1.4% and 2.3% over the week.
Wall Street breathed a sigh of relief after Consumer Price Index seasonal revisions had no impact on the rate of inflation at the end of the year. The report was hotly anticipated after last year’s revision shocked investors and the Fed after showing inflation hadn’t come down from its 2022 peaks nearly as quickly as they had thought.
On the earnings front, Pinterest (PINS) and Expedia (EXPE) both tumbled after reporting softer-than-expected sales. PepsiCo (PEP) also slipped on disappointing revenue, while cybersecurity provider Cloudflare (NET) soared on its earnings beat.
Stocks inched higher yesterday amid a slew of earnings reports, including beats from Disney (DIS) and Arm (ARM).
Equity Indexes Wrap: Semiconductor, Tech Stocks Lift Nasdaq, S&P 500; Expedia Weighs on Travel Stocks
6 hr 8 min ago
The Dow
Intel (INTC) rose 1.9% after the White House said it would invest $5 billion in a new public-private consortium for the research and development of advanced semiconductors. Tech peers Microsoft (MSFT) and International Business Machines (IBM) gained 1.6% and 0.4%, respectively.
Cisco (CSCO) shares added 0.3% amid reports it would lay off thousands of employees to focus on high-growth businesses.
Chevon (CVX) led the index lower, falling 2% amid reports Venezuela had built up its military presence along its border with Guyana. Chevron last year announced a $53 billion acquisition of Hess (HESS) in part to take ownership of Hess’s assets in the newly oil-rich country. Hess shares fell 2.9%.
Disney (DIS) also retreated 2% after soaring yesterday on a better-than-expected earnings report.
The S&P 500
Solar stocks continued to gain after Enphase Energy’s (ENPH) optimistic earnings outlook earlier this week. First Solar (FSLR) jumped 5.8% on Friday and Enphase added 4.8%.
Tech mega caps lifted the index; Amazon (AMZN) rose 2.7%, Alphabet (GOOGL) climbed 2.1%, and Microsoft (MSFT) added 1.6%.
Expedia (EXPE) tumbled 17.8% after reporting lower-than-expected fourth-quarter bookings. Other travel stocks suffered, with Norwegian Cruise Line Holdings (NCLH) down 6.2% and Booking Holdings (BKNG) falling 2.4%.
PepsiCo. (PEP) fell 3.6% after the company said sales fell for the first time in almost four years.
ExxonMobil (XOM), which is also developing oil fields in Guyana, lost 2.1%.
The Nasdaq 100
Semiconductor equipment makers gained on news of the White House’s chip investment. Applied Materials (AMAT) rose 6.9%, while Lam Research (LRCX) climbed 5.5% and KLA Corp. (KLAC) gained 5.1%.
PayPal (PYPL) jumped 5%, rebounding somewhat from yesterday’s sell-off amid a lukewarm reception to its earnings report.
Nvidia (NVDA) rose 3.6% to a fresh high amid reports it is planning to launch a custom chip unit.
Take-Two Interactive Software (TTWO) shares tumbled 8.7% after the video game maker cut its full-year bookings forecast, citing softness in the mobile ad market and NBA 2K24 sales.
Moderna (MRNA) slumped x% after research published Thursday raised concerns about the long-term efficacy of its experimental respiratory syncytial virus vaccine.
New York Community Bancorp Shares Soar as Insiders Buy Up Battered Stock
7 hr 18 min ago
Shares of New York Community Bancorp (NYCB) surged Friday after regulatory filings showed more than half a dozen insiders had bought up the stock after a sell-off sent its shares to a more than 25-year low.
Seven insiders, including CEO Thomas Cangemi and newly appointed Executive Chairman Alessandro DiNello, purchased a cumulative 207,610 shares at prices ranging from $4.05 to $4.41. Shares surged as much as 15.9% Friday before retreating slightly to trade up about 12.5% at $4.72.
The stock plunged last week after the lender, which acquired some of Signature Bank’s assets after it failed last year, reported a surprise loss in the fourth quarter after increasing its credit loss provisions by more than 700%.
Shares took another hit earlier this week when credit rating agency Moody’s downgraded the bank’s debt to junk status, citing concerns about the departure of two risk management leaders. Investors are also concerned about the bank’s elevated exposure to commercial real estate and rent-regulated multi-family properties.
Nvidia Stock Climbs to Fresh High After Reports of Custom Chip Unit Plans
7 hr 50 min ago
Nvidia (NVDA) shares climbed to a fresh high in intraday trading Friday after reports the chipmaker is planning to launch a new business unit focused on custom chips, including those powering artificial intelligence (AI).
The company’s shares were up over 3% at $717.71 per share as of about 2:15 p.m. ET Friday, after rising as high as $718.14 during the session. The stock has gained nearly 50% so far this year.
The chipmaker is reportedly “building a new business unit focused on designing bespoke chips for cloud computing firms and others, including advanced artificial intelligence processors,” Reuters reported Friday, citing sources familiar with the company.
The new unit could help Nvidia capture a piece of the growing market for custom chips as well as reinforce its position as the world’s most valuable chip company amid the AI boom.
The record high comes just days after Nvidia reached its previous high on Monday when Goldman analysts raised their price objective and upgraded their rating to “buy,” citing gains from surging AI demand.
Bitcoin Passes $48,000 for First Time Since ETF Approval
8 hr 54 min ago
Bitcoin climbed Friday to trade above $48,000 for the first time since the days surrounding the SEC’s decision on Jan. 10 to allow spot Bitcoin ETFs to begin trading.
Bitcoin was up 5.6% at $48,050 Friday afternoon, its highest price since mid-January when prices swung wildly on the first day of ETF trading. Since trading as high as $49,000 on Jan. 11, Bitcoin has trended downward, dipping as low as $39,000 in late January as investors took profits from a run-up in anticipation of ETF approval.
But the cryptocurrency has staged a rally over the last few days as spot ETF flows have turned positive. According to crypto research firm BitMEX, Bitcoin ETFs recorded their largest net inflows since Jan. 17 on Thursday.
Bitcoin could also be getting a boost from the impending halving, which will cut in half the bitcoin awarded miners for validating transactions on the blockchain. The halving is expected to take place sometime in April.
Shares of crypto-related stocks gained Friday. Coinbase Global (COIN), the custodian of most bitcoin ETF assets, rose 7.4%, while miners Riot Platforms (RIOT) and Marathon Digital (MARA) added 12.3% and 11.9%, respectively.
PepsiCo’s Profit Rises on Higher Prices, But Falling Volumes Hurt Sales
9 hr 38 min ago
PepsiCo (PEP) reported better-than-expected profit as it benefited from higher prices, but revenue fell for the first time in almost four years because of lower volumes and disadvantageous currency exchange rates. Shares fell 2.6% in intraday trading Friday following the news.
The maker of soft drinks and snacks posted fourth-quarter earnings per share (EPS) of $1.78, beating estimates. Sales declined 0.5% from a year ago to $27.85 billion, short of forecasts.
The company noted that foreign exchange rates negatively impacted revenue by 1.5%. Organic revenue was up 4.5% as Pepsi boosted prices. However, those higher prices reduced volumes for both its convenience foods and beverages units, which fell 3% and 2%, respectively.
The company predicted its full-year organic revenue growth will be at least 4%, and core constant currency EPS will be up at least 8%.
The news sent shares of PepsiCo into negative territory over the past year.
TradingView
Affirm Beat Estimates and Raised Its Guidance, but the Stock Is Tumbling
10 hr 19 min ago
Shares of Affirm (AFRM) sank Friday after the buy now, pay later provider offered full-year guidance that some may have considered conservative relative to its earnings beat.
Affirm reported a net loss of $167 million, or 54 cents per share, nearly half its loss in the year-ago quarter. Revenue totaled $591 million, up 48% from the year before. Gross merchandise volume (GMV) increased 32% to $7.5 billion, $600 million more than the high end of the range forecast in November.
After a strong quarter, the company boosted its full-year outlook. Affirm now forecasts full-year GMV of $25.25 billion, up from $24.25 billion estimated in November. But investors may have been looking for an even bigger increase, assuming that Affirm would now expect GMV to exceed prior estimates by about $600 million in each of the year’s two remaining quarters.
That may have overshadowed a 68% increase in revenue less transaction costs, which came in at $242 million, or 3.2% of GMV. Affirm also highlighted its stable credit quality—30+ day delinquency rates were unchanged quarter-over-quarter and year-over-year at the end of December.
Affirm shares traded 12.7% lower midday Friday after surging 10% on Thursday in the lead-up to its earnings report. Even with Friday’s declines, shares have risen more than 220% in the past year.
Expedia Stock Drops After Mixed Q4 Results, Announcement of CEO Change
11 hr 25 min ago
Expedia (EXPE) shares tumbled Friday after the travel giant released quarterly earnings that topped Wall Street expectations and bookings that fell short of forecasts, and also surprised investors by announcing the appointment of a new chief executive officer (CEO).
The pioneer online travel company posted fourth-quarter adjusted earnings of $242 million, or $1.72 per share, compared to analysts’ consensus estimate of $1.68 a share. Revenue of $2.89 billion in the period increased 10% from the prior year and came in ahead of the $2.88 billion Street view. Gross bookings for the quarter grew 6% to $21.67 billion, falling slightly short of the $22 billion analysts had expected.
In a separate statement released Thursday evening, the company said CEO Peter Kern had resigned from the role and will be replaced by company insider Ariane Gorin, who will take the helm on May 13. Gorin, who has been with Expedia for more than a decade, most recently as president of the company’s business-to-business (B2B) arm—Expedia for Business—will also assume a seat on the board of directors.
Since closing back above the 200-day moving average in early November, Expedia’s share price trended sharply higher before consolidating throughout most of January. A fall below the 50-day moving average risks shifting investor sentiment from the bulls camp to the bears camp, potentially sparking a trend reversal. It’s worth keeping a close eye on the $122 level—an area on the chart likely to encounter support from a multi-month horizontal line and the 200-day moving average.
Expedia shares were down 17.5% at $131.58 Friday morning.
Cloudflare Stock Surges on Strong Earnings, Upbeat Outlook
12 hr 14 min ago
Shares in Cloudflare (NET) surged in early trading Friday after the cybersecurity and content delivery solutions provider delivered a better-than-expected quarterly report and issued first-quarter guidance above Street estimates, fueled by the addition of large customers and growing demand for cloud security services.
For the December quarter, the San Francisco-based company posted adjusted earnings of 15 cents per share on revenue of $362.5 million, whereas analysts had expected earnings per share (EPS) of 12 cents on sales of $353.1 million. Moreover, the top line grew 32% from the prior year.
Cloudflare co-founder and CEO Matthew Prince credited the strong quarter to the signing of large customers, expansion into the government sector, and growth in the company’s cloud-based network-as-a-service (NaaS) solution, Cloudflare One.
Looking ahead, Cloudflare expects to earn an adjusted profit of 13 cents per share in the current quarter, a penny above the analysts’ modeling of 12 cents a share. Importantly, the lower end of the company’s top-line guidance range between $372.5 million and $373.5 million came in above Wall Street’s first-quarter revenue estimate of $372.3 million.
Cloudflare shares broke above an ascending triangle pattern on higher-than-average volume leading into earnings, indicating investors expected a blowout quarterly report, which the company delivered. If an earnings-driven rally extends beyond this week, keep an eye on the $132 level as a potential area of chart resistance. This region may see investors lock in profits near the prominent March 2022 swing high.
Cloudflare shares were up 24.3% at $112.19 Friday morning.
Stocks Making the Biggest Moves Premarket
13 hr 13 min ago
Gains:
- Cloudflare Inc. (NET): Shares of the cybersecurity firm jumped 24% after reporting better-than-expected fourth-quarter earnings and current-quarter guidance.
- Coinbase Global Inc. (COIN): The cryptocurrency’s shares rose more than 7% as the price of Bitcoin surged above $47,000.
- Rivian Automotive Inc. (RIVN): Shares of the electric truck maker rose 4% after it unveiled two new battery pack options for its R1T and R1S models, creating lower-priced versions of its entry-level vehicles.
Losses:
- Expedia Group Inc. (EXPE): Shares of the online travel company tumbled 15% after its holiday season bookings fell short of analyst estimates. The company also surprised investors with the announcement that CEO Peter Kern had resigned from his position.
- Pinterest Inc. (PINS): Shares of the social platform fell 8% after it reported softer fourth-quarter revenue than analysts were expecting.
- Take-Two Interactive Software Inc. (TTWO): Shares of the video game publisher slid more than 7% after it cut its full-year bookings forecast, citing softness in the mobile ad market and NBA 2K24 sales.
Stock Futures Gain in Premarket Trading
13 hr 57 min ago
Futures contracts connected to the Dow Jones Industrial Average traded about 0.1% higher premarket.
S&P 500 futures rose 0.2%.
Nasdaq 100 futures were also up about 0.2% a little over an hour before the opening bell.
