Stock index rebound: Nvidia and chip stocks fall as financials and staples advance
10 hours 45 minutes ago
Dow
American Express (AXP) rose 6.2% after the company reported better-than-expected first-quarter profit and net interest income. Financial sector peers also rose, including JPMorgan Chase (JPM) up 2.5% and Travelers Companies (TRV) up 1.7%.
Procter & Gamble (PG) rose 0.5% after its first-quarter profit beat Wall Street expectations.
The Dow’s price-weighting shielded it from the fallout in tech stocks, which saw some of its major names fall. Amazon (AMZN) fell 2.6%, Microsoft (MSFT) fell 1.3% and Apple (AAPL) fell 1.2%.
S&P500
Paramount Global (PARA) shares rose 13.4% following reports that Sony Pictures is in talks with Apollo Global Management to jointly acquire the entertainment company.
Fifth Third Bancorp (FITB) rose 5.9% after the company announced first-quarter results that fell short of analysts’ expectations.
Super Micro Computers (SMCI) fell 23.1% after the company missed its first-quarter earnings preview, which it has done in seven of the past eight quarters, raising concerns about slowing growth.
Nvidia (NVDA) led the semiconductor sell-off, dropping 10% to its lowest close since February and worst single-day price since March 2020.
Jabiru (JBL) fell 8.4% after the company announced it had placed CEO Kenneth Wilson on paid administrative leave amid an internal investigation into corporate policies.
SLB (SLB) fell 2.2% after the company announced a decline in North American sales for the first quarter.
Tesla (TLSA) fell 1.9% after the company recalled about 4,000 Cybertrucks to fix a defective gas pedal.
Intuitive Surgical (ISRG) was caught in a sell-off despite beating profit estimates. The stock price fell 1.7%.
Nasdaq 100
Utility stocks rose, extending a recent string of winning sessions. Exelon (EXC) rose 2.4%, while American Electric Power (AEP) and Xcel Energy (XEL) rose 2% and 1.8%, respectively.
Netflix (NFLX) fell 9.1% after the company released disappointing earnings guidance for the current quarter.
Following Nvidia, Advanced Micro Devices (AMD) also fell, dropping 5.4%. Micron (MU) and Broadcom (AVGO) fell 4.6% and 4.3%, respectively.
Meta (META) fell 4.1% as tech stocks fell.
Skip profit preview stokes growth concerns, causing supermicro stocks to plummet
11 hours 53 minutes ago
Super Micro Computers (SMCI)’s recent share price decline further accelerated on Friday after the artificial intelligence (AI) darling spooked investors by not pre-announcement of its March quarter results.
The AI hardware maker, also known as Supermicro, has released preliminary financial reports in seven of the past eight quarters, typically providing forecasts ahead of previous guidance. However, the company only announced on Friday that it will report its fiscal 2024 third-quarter results on April 30.
Shares plunged more than 22% on Friday, trading at $717, the lowest since early February. Still, the stock is up more than 150% so far this year, thanks to a sharp rally at the start of the year.
-Bill McCall
Nvidia loses $2 trillion in market cap
12 hours 36 minutes ago
Nvidia’s market capitalization fell below $2 trillion on Friday afternoon, following a sell-off in tech stocks that hit semiconductor stocks particularly hard.
Shares of the AI chip leader fell as much as 7.3%, falling below Nvidia’s $2 trillion threshold of $800, which has 2.5 billion shares outstanding. But despite Friday’s loss, the company still outperformed both Alphabet (GOOGL) and Amazon (AMZN) as the third most valuable company in the United States.
Nvidia’s market cap surpassed $2 trillion for the first time on February 23, just 270 days after surpassing $1 trillion. The stock continued to rise until late March, peaking at $950, giving the company a market value of nearly $2.4 trillion.
Nvidia and other tech stocks have been reeling this month as strong economic data and a series of better-than-expected inflation reports forced markets and policymakers to lower expectations for interest rate cuts this year.
Nvidia was followed by semiconductor peers Advanced Micro Devices (AMD) and Micron (MU), both down more than 4% by Friday afternoon.
Soap may have forced Tesla to recall about 4,000 Cybertrucks
13 hours 10 minutes ago
Tesla (TSLA) has ordered a voluntary recall of approximately 4,000 Cybertrucks after the National Highway Traffic Safety Administration (NHTSA) discovered a problem with the gas pedal.
NHTSA said, “If strong force is applied to the accelerator pedal pad, the pad may come off and the pedal may get caught in the interior trim above the pedal,” and “if this happens, performance will be reduced.” . This may affect pedal operation and increase the risk of a collision. ”
Regulators said the pads may have come off because soap used as a lubricant during the vehicle assembly process prevented it from sticking to the pedals.
A total of 3,878 Cybertrucks are involved in the recall, including all manufactured between November 13 and April 4.
Tesla shares fell about 0.6% to $149.1 Friday afternoon. They have lost about 40% of their value this year.
-Bill McCall
Bitcoin miners rise ahead of halving
14 hours 9 minutes ago
Bitcoin miner stocks rose on Friday ahead of the highly anticipated halving.
The three largest publicly traded miners, Marathon Digital (MARA), CleanSpark (CLSK), and Riot Platforms (RIOT), were all up about 8% early Friday afternoon.
The upcoming halving, as the name suggests, will reduce the reward for mining Bitcoin by half. This may not be as bad as it seems for miners. Halvings slow down the rate at which new Bitcoins are minted, which could push up prices. Historically, Bitcoin adoption has also increased. Both outcomes are beneficial to miners and help offset the downside of the halving.
There are also several ways for miners to make up for lost revenue. Miners may charge higher transaction fees, but until now they have only made up a small portion of overall revenue. Some miners are also exploring “energy harvesting” – generating their own electricity and selling the by-products.
Paramount advances as Sony and Apollo reportedly consider joint bid for media giants
14 hours 53 minutes ago
Paramount Global (PARA) stock soared nearly 8% in early trading Friday. new york times Sony Group (SONY)’s studio division is reportedly in talks with Apollo Global Management regarding the media giant’s participation in the bid.
According to the report, Paramount is still in exclusive merger talks with Skydance Media, and the two companies have not made a formal bid.
A potential deal with Skydance has been met with significant pushback from investors, with Paramount initially considering Apollo’s initial plan to acquire the company for more than $26 billion, including debt, amid questions about the investment firm’s financing. had rejected the proposal.
Paramount stock rose 8.3% to $11.88 at midday Friday. Even accounting for Friday’s gains, it has lost nearly 20% of its value since the beginning of 2024.
-Fatima Atalwala
American Express beats earnings and affirms growth forecast for 2024
15 hours 54 minutes ago
American Express (AXP) stock rose on Friday after the credit card company reported first-quarter sales and profits that beat analysts’ expectations and confirmed its growth outlook for the full year 2024.
American Express reported revenue of $15.8 billion, slightly above the $15.76 billion consensus estimate from analysts compiled by Visible Alpha. Net income was $2.44 billion and diluted earnings per share (EPS) were $3.33, significantly exceeding expectations of $2.17 billion and $2.96 per share, respectively.
Unlike its financial industry peers, which reported lower-than-expected net interest income in recent earnings reports, American Express posted a profit of $3.77 billion, beating expectations of $3.66 billion.
American Express has confirmed its full-year 2024 outlook, predicting year-over-year sales growth of 9% to 11% and EPS of $12.65 to $13.15.
American Express shares initially fell 2% in premarket trading after the earnings release, but then reversed, rising about 4% to $226 by Friday morning. The stock price has increased about 20% since the beginning of the year.
-Aaron McDade
Netflix’s first-quarter profits were a big hit, but why subscriber growth failed to boost stock price
16 hours 41 minutes ago
Netflix (NFLX) reported better-than-expected first-quarter revenue and profit due to a jump in subscriber numbers. But the company was one of the worst performers in the S&P 500 index Friday morning as the market focused on the company’s earnings outlook.
The streaming company had 269.6 million subscribers, up 16% year-on-year, adding 9.33 million new paying customers in the three months to March. After a lull in 2022, Netflix continues to see growth in its subscriber base even after implementing a password crackdown.
Netflix reported net income of $2.33 billion, or $5.28 per diluted share. Revenue rose 14.8% to $9.37 billion, well above analysts’ expectations.
The company’s second-quarter revenue was expected to rise 16% to $9.49 billion, slightly short of the $9.5 billion expected by analysts polled by Visible Alpha.
Netflix also predicted that profits would decline from the first quarter. Net income is expected to be $2.06 billion, down from $2.33 billion in the first quarter, and earnings per share (EPS) is expected to decline from $5.28 to $4.68.
Netflix stock fell more than 6% Friday morning to $572.61. But even after surging on the release of its fourth-quarter results, the stock is still up more than 17% since the beginning of the year.
– Mrinalini Krishna and Naomi Buchanan
Stocks that move the most before the market
17 hours 35 minutes ago
Profit:
- Paramount Global (PARA): The entertainment company’s stock rose more than 7% after reports that Sony and asset manager Apollo Global Management were considering a joint bid to acquire the company.
- Coinbase Global (COIN): The cryptocurrency exchange’s stock rose more than 3% as Bitcoin soared ahead of its long-awaited halving, which is expected to take place this afternoon.
- Shopify (SHOP): Shares of the e-commerce company rose more than 3% after Morgan Stanley analysts upgraded the stock to Overweight, citing its attractive valuation.
loss:
- Netflix (NFLX): The streaming giant’s stock fell about 6% after its revenue forecast fell short of Wall Street’s expectations.
- Taiwan Semiconductor Manufacturing Co. (TSM): The semiconductor manufacturing giant’s shares fell about 2% yesterday, widening its losses following a disappointing outlook for the global semiconductor industry.
- Tesla (TSLA): The electric car maker’s stock fell more than 1% after it recalled about 4,000 Cybertrucks to fix a defective gas pedal.
Stock futures rise slightly as crude oil prices trend moderately
18 hours 7 minutes ago
Futures contracts tied to the Dow Jones Industrial Average have rebounded after plunging overnight following Israel’s attack on Iran. Dow futures rose less than 0.1% about an hour before the market opened.
S&P 500 futures rose 0.1%.
Nasdaq 100 futures were flat.
