Stocks were slightly lower in midday trading Wednesday, one day after a late-session rally sent the S&P 500 to an all-time high.
The S&P 500 was down less than 0.1% in recent trading, while the Dow Jones Industrial Average and Nasdaq Composite fell 0.3% and 0.1%, respectively. Stocks kicked off the holiday-shortened trading week on a positive note Tuesday, adding to last week’s solid gains. The Dow and Nasdaq Composite entered Wednesday’s session less than 1% away from record closing highs.
Shares of major tech companies were mixed on Wednesday. Apple (AAPL), Amazon (AMZN), Meta Platforms (META) and Broadcom (AVGO) were all lower, while Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG) and Tesla (TSLA) gained ground.
Intel (INTC) shares were down nearly 6% after jumping 16% on Tuesday amid reports that the beleaguered chipmaker could sell parts of its business. The Wall Street Journal reported over the weekend that Broadcom and Taiwan Semiconductor Manufacturing Company (TSM) are considering bids for parts of Intel, while Bloomberg reported Tuesday that private equity firm Silver Lake Management is nearing a deal to buy a majority stake in the company’s Altera programmable chips unit.
Shares of Super Micro Computer (SMCI) were up 6%, extending a huge rally that followed the server maker’s release last week of a rosy outlook for AI-fueled sales growth. The stock, which surged 16% yesterday to lead S&P 500 gainers, has risen more than 50% over the past week.
A handful of stocks were on the move after the release of quarterly earnings reports. Shares of homebuilder Toll Bros (TOL) fell 7%, while Arista Networks (ANET) dropped 6% and speciality chemicals maker Celanese (CE) plunged more than 20% to lead S&P 500 decliners. Among post-earnings gainers, semiconductor company Analog Devices (ADI) and GPS device maker Garmin (GRMN) rose 7% and 13%, respectively.
The yield on 10-year Treasurys, which is sensitive to expectations about where interest rates are headed, was up slightly at 4.55% in recent trading. Investors are awaiting today’s scheduled release of the minutes from last month’s Federal Reserve policy committee meeting. The Fed decided in January to hold its key fed funds rate steady owing to concerns about inflation, ending a three-meeting streak of cuts.
Bitcoin was at $96,200, up from an overnight low around $94,000. Gold futures were down slightly at $2,945 an ounce, hovering near a record high, while West Texas Intermediate crude oil futures rose 1.2% to $72.75 a barrel.
Toll Brothers Stock Slides on Earnings Miss
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Toll Brothers (TOL) shares slumped Wednesday after the homebuilder posted weaker-than-expected results and warned about demand in some markets.
The company reported fiscal first-quarter earnings per share of $1.75, with revenue down 1.6% year-over-year to $1.86 billion. Both figures were short of estimates compiled by Visible Alpha. The results came as home sales slipped 4.7% to $1.84 billion, and deliveries climbed 3.3% to 1,991 units. Those missed expectations, as well.
David Paul Morris / Bloomberg / Getty Images
CEO Douglas Yearley, Jr. said the soft profit numbers were mainly because of “impairments and a delay in the sale of a stabilized apartment property in one of our joint ventures.” However, he added that while demand for higher-priced homes has been solid, “affordability constraints and growing inventories in certain markets are pressuring sales—especially at the lower end.”
Toll Brothers said it anticipates current-quarter deliveries of 2,500 to 2,700 units, while analysts surveyed by Visible Alpha were looking for 2,766.
Shares of Toll Brothers were down 7% in late-morning trading.
Celanese Stock Plunges on Weak Outlook
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Celanese (CE) shares plunged Wednesday after the specialty chemicals maker warned a slowdown in its business could continue in the current quarter.
The company reported a fourth-quarter operating loss of $1.4 billion, with revenue of $2.4 billion, a 10% drop from the third quarter. The company said it faced decreases of 7% in volume, 2% in price, and 1% in currency.
CEO Scott Richardson said that during the period Celanese dealt with “further demand deterioration that gave no sign of easing.”
The company added it expects “sequential demand and pricing challenges experienced in the fourth quarter to be largely unchanged in the first quarter,” and anticipates “continued weakness in core end-markets like automotive, construction, paints, coatings, and industrial.”
Celanese projected first-quarter earnings per share (EPS) in the range of 25 cents to 50 cents, below analysts’ expectations compiled by Visible Alpha. However, the company added it could see “meaningful improvement” in the second quarter.
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Celanese shares were down more than 20% in early trading Wednesday, leading S&P 500 decliners, and have lost nearly two-thirds of their value over the past 12 months,
Meta Levels to Watch After 20-Day Winning Streak Snapped
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Meta (META) shares fell in early trading Wednesday, one day after posting their first decline in more than a month.
The stock on Tuesday snapped a 20-session winning streak during which it gained 20%. The rally started on Jan. 17 and spanned a period that included the inauguration of President Donald Trump, an upbeat fourth-quarter earnings report and the emergence of AI Chinese startup DeepSeek.
Meta shares have outpaced their Magnificent Seven peers since the start of the year amid optimism that the company’s significant investments in AI are helping drive advertising revenue and increasing user engagement.
Meta shares have trended higher in an orderly ascending channel since last July, with price action contained between the pattern’s two trendlines. More recently, the stock has rallied into the channel’s upper trendline, but has failed to make a decisive breakout, potentially undermining buying momentum.
In another troubling sign for the bulls, the relative strength index (RSI) on Tuesday fell from its highest reading since February last year to below the overbought threshold, potentially setting the stage for further declines.
Investors should watch key support levels on Meta’s chart around $680, $632, and $600.
Share were down 2% at $702 about 20 minutes after Wednesday’s opening bell.
Read the full technical analysis piece here.
Celsius Jumps Ahead of Earnings, Conference Presentation
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Shares of energy drink maker Celsius Holdings (CELH) jumped on Wednesday morning, ahead of the scheduled release of the company’s earnings report and a presentation from executives at a conference.
While there is no clear financial reason for the premarket move, the gain is in line with analysts’ thoughts on the company.
Despite its 65% drop over the last 12 months, analysts have remained bullish on the stock. Analysts tracked by Visible Alpha have eight “buy” and four “hold” ratings, with an average price target of $38.91, more than 70% above the stock’s Tuesday closing price.
After the bell Tuesday, Celsius said it would announce its fourth-quarter results on Thursday afternoon. The company also announced that three of its executives are presenting at the Consumer Analyst Group of New York conference on Friday morning.
Analysts expect sales of $325.5 million for the quarter, and earnings of $0.15 per share, according to estimates compiled by Visible Alpha.
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Celsius shares, which entered the day near their lowest point since July 2022, were up more than 7% ahead of the bell.
Supermicro Levels to Watch as Stock Continues to Soar
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Super Micro Computer (SMCI) shares gained ground in premarket trading Wednesday, extending an impressive rally that followed the server maker’s upbeat business update last week.
Investors bid the stock up for a fourth consecutive trading session on Tuesday after the company guided significant revenue growth in fiscal 2026 during the update, as demand grows for artificial intelligence (AI) infrastructure.
Buying enthusiasm has also been bolstered after the company said during the same update that it expects to submit its delayed fiscal 2024 financial reports by the Nasdaq’s Feb. 25 deadline to avoid being delisted from the exchange.
Since last week’s update, Supermicro shares have soared 45% through Tuesday’s close, but still trade down 30% over the past twelve months following a number of high-profile accounting and corporate governance issues. The stock was up nearly 8% at around $60 in recent premarket trading.
Supermicro shares broke out from a falling wedge pattern earlier this month, signaling a continuation move higher. Indeed, the stock has seen follow-through buying on above-average volume, with gains accelerating in recent trading sessions.
Investors should watch crucial overhead areas on Supermicro’s chart around $70 and $96, while also eyeing key support levels near $50 and $38.
Read the full technical analysis piece here.
Major Stock Index Futures Mixed
4 hr 38 min ago
Futures tied to the Dow Jones Industrial Average were down 0.1%.
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S&P 500 futures were off less than 0.1%.
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Nasdaq 100 futures rose 0.1%.
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