Top 10 things to watch on Thursday, May 30th
1. of Dow The Dow was leading the decline in early Thursday trading, much like it has been in recent trading. The Dow and Salesforce’s sharp drop after the company’s earnings announcement accounted for most of the 300-point premarket drop. S&P 500 and Nasdaq If the morning trading close is maintained, all are expected to post consecutive losses. Costco We report earnings after the transaction closes.
2. SalesforceThe company’s latest quarterly and guidance, released on Wednesday evening, showed us that the enterprise software slowdown is real. The stock fell 15%. Although overheated, slowing growth is not rewarded by the stock. We maintained our 2 rating and lowered our price target on the company to $300 from $340. Key words heard frequently on the post-earnings conference call were “constrained” sales cycle, “budget scrutiny” and “cautious buying environment.”
3. Best Buy Shares rose about 7%, gaining momentum after the electronics retailer cited artificial intelligence computers and devices as an expected sales driver in a conference call after reporting earnings. Quarterly profit beat expectations, but revenue missed. Same-store sales fell short of expectations. Management lowered its full-year capital spending outlook.
Four. Distressed Stocks Foot Locker Shares rose 12% after the sneaker retailer reported better-than-expected quarterly profit, revenue in line with expectations and a smaller-than-feared drop in same-store sales, with guidance that was pretty good and a sign that CEO Mary Dillon’s turnaround is getting underway.
- At our May monthly meeting at noon ET, we’ll be talking about Costco, Salesforce, Best Buy, Foot Locker, and 29 other stocks in our investment club portfolio.
Five. of stocks Coles Department store chain Kohl’s shares fell more than 20% after the company reported a quarterly loss of 24 cents a share, compared with an expected profit of 4 cents a share. Revenue also fell short of expectations. The company also lowered its outlook for the future.
6. UI Pass Disaster: Shares plunged more than 30% early Thursday after CEO Rob Ensslin resigned, effective June 1. Co-founder Daniel Dines will return to the role; he stepped down as co-CEO at the end of January. The enterprise automation and AI software maker saw multiple analyst rating downgrades. UiPath lowered its earnings outlook after better-than-expected quarterly results.
7. Goldman Sachs launches club name Abbott Labs Buy it GE Healthcare On hold. Analysts see medtech growth accelerating. The club bought more shares of Abbott and GEHC on Wednesday.
8. Goldman Sachs raised its 2030 sales forecast for the GLP-1 obesity drug to $130 billion from $100 billion last year, leading analysts to raise their price targets on the club name as a result. Eli Lilly The stock has risen to $785 a share from $740, well below Wednesday’s closing price.Goldman maintained its “hold” rating on Lilly, which shares with its Danish rival a monopoly on the GLP-1 market. Novo Nordisk.
9. Hospitals are doing well. JPMorgan raised its price target. Tenet Healthcare The firm raised its target price for the stock to $140 per share from $107 while maintaining its buy recommendation rating on the hospital and surgery center operator.
Ten. McDonald’s US President Joe Erlinger released an open letter on inflation, saying that the price of a Big Mac in the US was $4.39 in 2019, but now it’s $5.29 – that’s 21% inflation. Erlinger responded to social media posts and media reports that claim McDonald’s is exaggerating its price increases.
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