Stock market today: Dow, S&P 500, Nasdaq futures falter as Wall Street weighs Nvidia’s big earnings beat

Yahoo Finance’s Pras Subramanian reports:

Big Three automaker Stellantis (STLA) reported a massive full-year loss after taking a $26 billion EV-related charge, but saw improving second-half results, suggesting the company’s turnaround under CEO Antonio Filosa may be working.

Stellantis — which counts brands like Ram, Jeep, Fiat, and Alfa Romeo in its product portfolio — reported second half net revenue of 79.25 billion euros ($93.47 billion), That was in range of the 78 billion to 80 billion euros ($91.87 to $94.23 billion) forecast, and 10% higher than the 71.86 billion euros ($84.64 billion) reported a year ago.

Stellantis posted a second-half adjusted operating income loss of 1.38 billion euros ($1.63 billion), also in range of the 1.2 billion to 1.5 billion euros ($1.41 billion to 1.77 billion) forecast. That was a reversal of the 185 million euro ($218 million) gain reported in the second half of 2024, which itself was a massive drop compared to the 10.2 billion euro ($12 billion) profit reported in 2023.

… For the full year, Stellantis reported a net loss of 22.3 billion euros ($26.3 billion), due to 25.4 billion euros ($29.96 billion) of “unusual charges,” the company said.

Stellantis stock was little changed in premarket trade in New York.

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Yahoo Finance’s Jake Conley reports:

During his State of the Union address on Tuesday night, President Trump touted an energy industry strengthened by the success of his “Drill, baby, drill” policy, a dual mandate of more hydrocarbon drilling and lower gas prices.

A year into Trump’s second term, oil and gas production is at or near all-time highs, and gasoline prices average below $3 per gallon nationally.

But for the US oil and gas industry, the president’s ambitions have come at a cost.

“Capital efficiencies and returns drive our investment decisions,” said an oil and gas operator responding to the Dallas Federal Reserve’s fourth quarter energy survey.

“If economic conditions worsen, drilling and completion activities will cease in 2026.”

… Even as Exxon Mobil (XOM) and Chevron (CVX), the country’s largest integrated oil and gas operators, increased their production and beat analyst estimates on top-line revenue, both companies recorded year-on-year declines in annual profit as the oil glut depressed prices, shrinking their margins.

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From Bloomberg:

Nvidia Corp. (NVDA), the dominant maker of artificial intelligence processors, failed to impress investors with its latest sales forecast, signaling that concerns about an overheated AI economy will continue to dog the company.

Though the chipmaker delivered a 73% surge in fourth-quarter revenue and a first-quarter outlook that easily beat the average Wall Street estimate, Nvidia shares fell as much as 1.5% during a conference call with analysts. The stock was up less than 1% in premarket trading on Thursday.

It was a stark reminder of the skepticism now surrounding Nvidia. After explosive sales growth turned the chipmaker into the world’s most valuable company, investors are seeking stronger assurances that booming AI sales are here to stay.

“By most measures, Nvidia delivered a solid set of results,” analysts at JPMorgan Chase & Co. said in a note after the results. “Even so, the stock response suggests investors were left wanting more.”

CEO Jensen Huang pushed back on the concerns during Wednesday’s call, arguing that customers are already making money from their newly acquired computing power. That’s why clients will keep investing at elevated levels, he said.

“You need compute capacity, and that translates directly to growth, and that translates directly to revenues,” Huang said. “I’m confident their cash flows are growing.”

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From Reuters:

Nvidia (NVDA) may have made its immense fortune on the back of specialized graphics processing units (GPUs) used to power artificial intelligence servers, but CEO Jensen Huang is increasingly professing his love for the more generalist CPU.

The CPU, or central processing unit, was for ‌decades traditionally viewed as the main brain of a computer — a product most associated with Intel (INTC) or sometimes Advanced Micro Devices (AMD).

Huang is fond of saying ‌that where once 90% of computing used to happen on CPUs and 10% on chips like his, the ratio had flipped in recent years.

But the CPU is now making a comeback – increasingly seen as an equivalent ​if not better option as AI companies shift from training their models to deploying them – a shift that Nvidia plans to be a big part of.

“We love CPUs as well as GPUs,” Huang said on a call with analysts on Wednesday for the company’s fourth-quarter results.

He assured them that Nvidia was not only ready for the CPU’s return to the spotlight, but also that Nvidia’s own CPU offerings for data centers, first released in 2023, would outcompete rivals.

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Marriott Vacations’ (VAC) stock rose 8% before the bell on Thursday after reporting fourth quarter earnings, with revenue exceeding analyst expectations.

Trade Desk (TTD) stock sank 16% during premarket hours today. The technology platform reported fourth quarter earnings of $0.59 per share, beating estimates and also reported a rise in revenue. But it forecast first quarter revenue of $678 million, which fell below analyst expectations.

Zoom (ZM) stock fell 3% before the bell on Thursday after forecasting quarterly profit below Wall Street estimates on Wednesday.

Shares of Salesforce (CRM) fell almost 4% in premarket trading after the software company’s fiscal 2027 revenue forecast came in below Wall Street expectations on Wednesday.

The San Francisco-based company flagged sluggish spending on enterprise business software ‌as it invests heavily in its AI platform to ​drive up demand.

Reuters reports:

Bloomberg reports:

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Yahoo Finance’s Dan Howley reports:

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