close
close

Stocks Close Up on Interest Rate Cut Hopes; The Dow gains for the fourth session in a row

The biggest changes on Monday

1 hour 54 minutes ago

Investopedia


PROFITS

Super Micro Computer (SMCI) rose 6.1% after Barclays raised its price target on the stock. Analysts cited expected revenue growth, supply chain improvements and artificial intelligence opportunities as reasons for the increases. Monday’s gains represent a reversal of heavy losses posted last week after the storage and server provider’s earnings report raised questions about its potential to benefit from artificial intelligence.

Aviation sector stocks soared, led by American Airlines (AAL) with a 5.8% gain. Shares of Southwest Airlines (LUV) and United Airlines (UAL) rose 4.9% and 4.5%, respectively.

Quanta Services (PWR) rose 5.1% on Monday after the electricity infrastructure provider raised its full-year sales and earnings forecasts last week, citing strong demand for construction and engineering services from the power and renewable energy industries.

LOSSES

Tyson’s food Shares (TSN) fell 5.7% after Meatpacker said inflationary pressures and high raw material costs could weigh on its results. Tyson’s second-quarter earnings topped forecasts, but softness in the pork and processed foods departments showed it wasn’t easy in the current quarter.

Amgen (AMGN) fell 3.8%, giving up some of the 11.8% gain it posted on Friday after the biotech company provided an update on its weight-loss drug MariTide. While there is speculation that MariTide could compete with blockbuster anti-obesity drugs already on the market, investors will have to wait until the end of the year for more detailed data from a mid-stage clinical trial.

Walgreens Shoe Alliance (WBA) decreased by 3.1%. The pharmaceutical giant is undergoing a strategic review aimed at transforming its business. While Walgreens has made some progress in cutting costs and reducing debt, it faces challenges in reducing consumer spending and significant unpaid tax liabilities.

Michael Bromberg

Reddit Increases BofA’s Pre-Earnings Price Target

2 hours 32 minutes ago

Shares of Reddit (RDDT) closed 3.5% higher after Bank of America (BAC) analysts raised their price target on the stock, expecting an “opportunity for upside” when the social media company reports first-quarter earnings on Tuesday, which will be the first earnings report since its initial public offering in March.

TradingView


Bank of America raised its price outlook to $50 per share from the previous $46, while maintaining a “neutral” rating on the company’s stock.

Analysts said they expect Reddit could exceed the bank’s revenue estimate of $212 million, up 29% from the year-ago quarter, on ad revenue of $199 million, up An increase of 21% year on year.

Bill McCol

Disney shares are rising ahead of Tuesday’s earnings release

4 hours 48 minutes ago

Shares of Disney ( DIS ) rose 2.4% about an hour before Monday’s closing bell ahead of tomorrow’s release of the company’s earnings report.

Analysts expect Disney to show subscriber growth in the fiscal second quarter, thanks to the benefits of the recent merger of Disney+, Hulu and ESPN+.

Investors will also be looking for updates on the path to profitability of its streaming business after CEO Bob Iger said the company expects to be profitable by the end of the fiscal year.

UBS analysts, who said Disney’s streaming segment is the “biggest source of near-term growth,” noted that “Hulu’s U.S. consolidation should also drive engagement and help streamline operations, boosting streaming margins.”

Analysts estimate Disney’s second-quarter 2024 revenue will be $22.08 billion, down from the previous quarter but up from $21.82 billion in the same period in 2023, according to estimates from Visible Alpha .

Net income is expected to be $1.97 billion, also down from the first quarter but up from $1.7 billion in the second quarter of 2023. Diluted earnings per share (EPS) are forecast at $1.09, compared with 93 cents in the same period a year earlier.

Naomi Buchanan

Tyson collapses as CEO cites macro concerns

5 hours 29 minutes ago

Shares of Tyson Foods ( TSN ) fell nearly 8% in Monday afternoon trading, dragging the S&P 500 lower as concerns about the “macro environment” raised by its chief executive during the company’s earnings call wiped out a higher-than-expected quarterly profit.

Tyson reported adjusted earnings per share (EPS) of 62 cents for the fiscal second quarter, nearly double the consensus estimate from Visible Alpha and a reversal from the loss per share of 4 cents it reported in the same period last year. Revenue fell 0.5% for the year to $13.07 billion, slightly below forecasts.

On the company’s earnings call on Monday, CEO Donnie King said Tyson is “not immune to the macro environment.”

Bill McCol

Micron is the leader of Nasdaq growth after Baird’s update

6 hours 49 minutes ago

Micron Technology (MU) rose more than 4% in Monday afternoon trading and was the biggest gainer on the Nasdaq after Baird upgraded the stock and raised its price target, saying it sees “significant upside opportunities” for the semiconductor maker.

Baird upgraded his rating to outperform from neutral and raised his price target to $150 a share from $115. It also added Micron to its “top semiconductor ideas” list, which also includes Nvidia (NVDA), Broadcom (AVGO) and Semtech (SMTC).

TradingView


Baird senior research analyst Tristan Gerra wrote in a note to clients that Micron shares look attractive after the recent decline, which came even as DRAM chip demand trends accelerate.

Gerra noted that DRAM chip prices are higher than expected, “although supply growth is expected to slow the overall industry.”

-Bill McCol

Palantir stock ahead of earnings report

8 hours 1 minute ago

Shares of Palantir ( PLTR ) rose more than 6% in morning trading Monday ahead of the data analytics software maker’s quarterly earnings report after the closing bell.

Analysts expect Palantir to report that revenue and profits rose from a year ago as demand for artificial intelligence surges, and market participants will be watching closely next Monday to gauge whether AI momentum can sustain Palantir’s growth.

Investors expect sustained growth in the company’s commercial segment, which accounted for approximately 45% of the company’s revenues last year. Goldman Sachs analysts said they “believe the key debate for the stock will be the sustainability of growth at the U.S. commercial company as Palantir’s strengths in data fusion intersect with customer artificial intelligence projects.”

Palantir’s shares have surged on enthusiasm for its potential amid booming demand for artificial intelligence, with some analysts saying it is a key benefactor while others suggest it is overvalued due to the hype surrounding artificial intelligence.

Naomi Buchanan

Apple in the spotlight after Berkshire rate cut

9 hours 43 minutes ago

Apple ( AAPL ) remains in the spotlight Monday after a big gain on Friday following weekend reports that Warren Buffett’s Berkshire Hathaway reduced its stake in the iPhone maker in the first quarter.

While Apple remains by far Berkshire’s largest holding, the latest reduction is significantly larger than the 10 million share cut disclosed in the fourth quarter. Berkshire is also Apple’s largest shareholder.

Buffett assured investors at the company’s shareholder meeting Saturday that his views on the tech giant’s business have not changed, adding that it is “extremely likely” that Apple will remain Berkshire’s largest holding at the end of 20241.

Asked whether his view of Apple has changed, the Oracle of Omaha told shareholders that he thinks Apple is an even better business than American Express (AXP) and Coca Cola (KO), Berkshire’s two other large holdings.

Buffett’s comments may have helped allay investor concerns that Berkshire is reducing its exposure to Apple amid valuation concerns after a 48% rise in 2023 and a 28x forward earnings multiple. Still, the company’s stock could face near-term price volatility as investors analyze Berkshire’s latest stock sale.

Source: TradingView.com.

Apple shares, down 0.5% to $182.46 in early trading Monday, have been hovering roughly within a 30-point trading range since August 2023, and the price has tested the upper and lower levels of this pattern several times over the past eight months . The stock recently rose above its 200-day moving average on Friday after reporting better-than-expected earnings and announcing a $110 billion share repurchase program.

If the stock continues to buy further, investors should monitor the $196 level – an area on the chart where the price may encounter general resistance from the upper trend line. However, during times of weakness, watch out for a potential gap fill to around $173, which is near the 50-day moving average.

-Timothy Smith

Stock futures are rising on two weeks of gains

10 hours 51 minutes ago

Futures contracts tied to the Dow Jones Industrial Average rose 0.4%.

TradingView


S&P futures gained 0.5%.

TradingView


Nasdaq futures rose 0.4% about 45 minutes before Monday’s opening bell.

TradingView