Market Overview
Today's trade featured lackluster price action through most of the session. The major indices were trading either slightly above or slightly below prior closing levels. Index levels improved over the last hour of trading, leaving the major indices at session highs.
Mega Cap Performance
Gains in some mega cap names acted as support for the entire session, picking up momentum in front of the close. The Vanguard Mega Cap Growth ETF (MGK) was down as much as 0.3% earlier, but closed with a 0.4% gain near its high of the day.
NVIDIA (NVDA 953.86, +6.06, +0.6%) was a winner from the mega cap space after exhibiting volatile price action in front of its earnings report after Wednesday's close. NVDA shares had been up as much as 0.7% today and traded down as much as 1.7%, contributing to the overall mixed feeling in the market.
High-Profile Earnings Reports
Some high-profile stocks that reported earnings since yesterday's close received negative responses to their results:
- Palo Alto Networks (PANW 311.66, -12.11, -3.7%)
- Lowe's (LOW 224.86, -4.31, -1.9%)
- AutoZone (AZO 2820.83, -103.21, -3.5%)
These negative responses acted as a limiting factor for the S&P 500 consumer discretionary sector, along with a loss in Amazon.com (AMZN 183.15, -0.39, -0.2%). However, the sector still logged a gain thanks to a jump in shares of Tesla (TSLA 186.60, +11.65, +6.7%).
Other Retailers
Macy's (M 20.08, +0.98, +5.1%) is not an S&P 500 component, but it is another retailer that reported earnings, logging a solid gain in response.
Target (TGT 155.78, -0.93, -0.6%), TJX (TJX 97.70, -0.09, -0.1%), Petco Health and Wellness (WOOF 2.45, -0.13, -5.0%), and Williams-Sonoma (WSM 314.38, -2.20, -0.7%) report earnings in front of tomorrow's open.
Treasury Yields
Treasury yields settled slightly lower, but that didn't translate into support for stocks. The 2-yr note yield settled one basis point lower at 4.83%, and the 10-yr note yield fell two basis points to 4.41%.
Economic Data
There was no US economic data of note again today. However, Wednesday's calendar features the release of the Minutes from the April 30-May 1 FOMC meeting and the Existing Home Sales report for April. Wednesday's lineup also includes the weekly MBA Mortgage Index and the weekly EIA Crude Oil Inventories.
Guru Stock Picks
Scott Black has made the following transactions:
Today's News
Tesla (TSLA, Financial) saw a surge in its stock price on Thursday following its participation at the Advanced Clean Technology Expo in Las Vegas. The company showcased demo rides in its Tesla Semi and announced plans for a new Semi factory in Nevada, expected to be operational by 2026 with a target capacity of 50,000 units annually. During the presentation, exec Dan Priestley emphasized the challenges and significance of electric heavy trucking, highlighting the company's commitment to this sector.
Nvidia (NVDA, Financial) shares reached a record high on Tuesday, ahead of its earnings report, despite Amazon Web Services halting purchases of Nvidia's Hopper GPUs in favor of the upcoming Blackwell GPU launch. Analysts expect Nvidia to report fiscal first-quarter results significantly above expectations, with an anticipated earnings per share of $5.58 on $24.59B in revenue. KeyBanc Capital Markets noted that Nvidia's current offerings have not been significantly impacted by the pending Blackwell GPU launch.
Alphabet (GOOG, Financial) continued its upward trajectory, closing 1.1% higher on Tuesday, marking seven consecutive sessions of gains. The stock has risen more than 26% year-to-date, outperforming the broader market. Alphabet's strong performance is supported by a Strong Buy rating from analysts, with high marks for profitability despite a lower valuation score.
Independent U.S. presidential candidate Robert F. Kennedy, Jr. expressed support for retail investors and announced a $24K investment in GameStop (GME, Financial). The stock experienced significant volatility last week due to the return of retail investor Keith Gill. Kennedy emphasized the need for greater market transparency and regulatory oversight, promising aggressive Wall Street reforms if elected.
Modine Manufacturing (MOD, Financial) reported Q4 Non-GAAP EPS of $0.77, slightly beating expectations. However, revenue fell short at $603.5M, a 2.4% year-over-year decline. Despite the revenue miss, the company saw a 20% increase in adjusted EBITDA. Modine's outlook for 2025 includes net sales growth between 5% to 10% and adjusted EBITDA growth of 16% to 22%.
First Solar (FSLR, Financial) led the S&P 500 on Tuesday, gaining 8.1% after UBS identified the company as a direct beneficiary of AI-driven electricity demand. UBS analysts highlighted First Solar's unique technology and its alignment with increasing U.S. protectionism and AI-driven electricity demand growth.
Walgreens Boots Alliance (WBA, Financial) hit a new 52-week low on Tuesday, trading down 5.5%. The stock has struggled significantly, down 36% year-to-date and 43% over the past year. The decline reflects ongoing challenges and concerns about the company's future prospects.
Autodesk (ADSK, Financial) announced the acquisition of Wonder Dynamics, a company specializing in cloud-based 3D animation and VFX solutions that integrate artificial intelligence. The terms of the deal were not disclosed.
Comcast (CMCSA, Financial) revealed a new streaming bundle, StreamSaver, offering Peacock Premium, Netflix Basic, and Apple TV+ at a discounted rate of $15 per month. This bundle aims to reduce churn and customer acquisition costs for streaming services, replicating the traditional cable bundle model.
Mid America Apartment Communities (MAA, Financial) declared a quarterly dividend of $1.47 per share, consistent with previous payouts. The dividend is payable on July 31 to shareholders of record as of July 15.
Barrick Gold (GOLD, Financial) saw its shares decline by 0.73% on Tuesday, ending a six-day winning streak. Despite recent gains, the stock has lost 1.6% year-to-date. Analysts have given Barrick Gold a "Buy" rating, citing strong profitability and growth prospects.
Moderna (MRNA, Financial) continued its positive momentum, closing up 1.90% on Tuesday. The stock has risen 41.79% year-to-date, outperforming the broader market. Analysts maintain a Hold rating on the company, with mixed recommendations ranging from Strong Buy to Sell.
Viasat (VSAT) reported Q4 Non-GAAP EPS of -$0.24, with revenue of $1.15B, a 72.6% year-over-year increase. The company expects flat revenue growth for FY2025, excluding one-time litigation settlement benefits, and modest growth in adjusted EBITDA.
Suncor Energy (SU) saw a 2.9% rise in its stock price on Tuesday, nearing its highest closing price in over 13 years. The company plans to increase stock buybacks and expects to reach its debt target by mid-2025.
Snowflake (SNOW) is set to report Q1 earnings on May 22, with expectations of $0.17 EPS on $785.9M in revenue. Analysts anticipate the company will beat market expectations despite strong competition from peers like MongoDB (MDB) and Datadog (DDOG).
Microsoft (MSFT) CEO Satya Nadella emphasized the role of AI in increasing accessibility during his keynote speech at Build 2024. Microsoft revealed GitHub Copilot Workspace, which allows users to develop software with minimal programming knowledge, aiming to democratize software development.
Urban Outfitters (URBN) reported Q1 Non-GAAP EPS of $0.69, beating expectations by $0.16. Revenue increased by 8.1% year-over-year to $1.2B, driven by strong growth in digital and retail store sales. Shares rose by 7.19% following the report.
Faraday Future Intelligent Electric (FFIE) saw a dramatic rise in its stock price, driven by high volatility and significant short interest. The stock has surged approximately 3810% since last Monday, marking a resurgence of meme-stock activity.
Howard Hughes Holdings (HHH) received a favorable court ruling allowing its mixed-use development project in Lower Manhattan to proceed. The project, located at 250 Water Street, will include 400 market-rate and affordable rental units, contributing significantly to the neighborhood.
GuruFocus Stock Analysis
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