Equity Indexes Wrap: Tech Stocks Tumble, Led by AI Chip Leaders; Walmart, Home Depot Gain on Earnings
February 20, 2024 04:07 PM EST
The Dow
Walmart (WMT) jumped 3.3% after beating Wall Street’s estimates with its fourth-quarter earnings and announcing the $2.3 billion acquisition of smart TV maker Vizio (VZIO).
Coca-Cola (KO) rose 2.3% as investors piled into the relative safety of consumer staples stocks and dividend aristocrats. Procter & Gamble (PG) added 0.7%.
Home Depot (HD) inched up 0.1%, recovering from early losses after the home retailer forecast comparable store sales would decline 1% in 2024.
Caterpillar (CAT) fell 2.6% after ISI Evercore downgraded the stock to “hold” from “buy,” citing the stock’s more than 30% rally in the last year.
Tech stocks tumbled, led by International Business Machines (IBM), down 2.2%, and Salesforce (CRM), down 1.1%.
The S&P 500
Discover Financial Services (DFS) jumped 12.6% after Capital One (COF) said it would buy the credit card and payments provider for $35.3 billion. Fellow credit card provider Synchrony Financial (SYF) rose 2.4% while Capital One ticked up 0.1%.
Medtronic (MDT) gained 1.7% after it reported better-than-expected sales of its heart and diabetes devices in the fourth quarter. Competitor Abbott Laboratories (ABT) rose 2.3%.
Expeditors International (EXPD) led the index lower, falling 6.9% after missing earnings estimates in the fourth quarter amid low shipping volumes and soft prices. Freight and logistics peer J.B. Hunt (JBHT) lost 5.7%.
Mastercard (MA) fell 3.5% as investors considered the increased competition it could face after Capital One and Discover’s tie-up. Fellow payments giant Visa (V) slipped 1.2%.
The Nasdaq 100
GlobalFoundries (GFS) rose 2.1% after the chip fabricator received a $1.5 billion grant from the White House to expand and add to manufacturing capacity in New York and Vermont. Intel (INTC), also a contender for billions of dollars of CHIPS Act incentives, rose 2.3%.
The Trade Desk (TTD) fell 7.2% as investors took profits following a 17.5% jump last Friday on a better-than-expected earnings report.
Chip stocks, some of the year’s best-performing stocks, lost their momentum. Nvidia (NVDA) fell 4.4% while competitor Advanced Micro Devices (AMD) slid 4.7% and semiconductor manufacturing equipment maker ASML Holding (ASML) lost 2.1%.
Palo Alto Networks (PANW) slipped 0.1% ahead of its earnings report after the bell.
What You Need to Know Ahead of Nvidia’s Earnings Report on Wednesday
February 20, 2024 03:47 PM EST
Nvidia (NVDA) is set to announce its fourth-quarter earnings for the 2024 fiscal year after the bell on Wednesday, with analysts expecting significant profit and revenue gains from the chipmaker as it benefits from the artificial intelligence (AI) boom.
Analysts anticipate Nvidia’s revenue could reach $20.38 billion for the final quarter of fiscal 2024, more than triple the chipmaker’s revenue in the same period a year ago, according to estimates compiled by Visible Alpha.
Net income is expected to be $10.4 billion, up from $1.41 billion in the fiscal fourth quarter of 2023, while earnings per share (EPS) is projected at $4.18, compared to 57 cents in the same period a year earlier.
See here for more on what to expect from Nvidia tomorrow.
Medtronic Beats Estimates and Boosts Outlook on Heart, Diabetes Device Sales
February 20, 2024 03:06 PM EST
Shares of Medtronic PLC (MDT) gained Tuesday after the medical technology firm posted better-than-expected results and raised its guidance on increased demand for its heart and diabetes devices.
The company reported third-quarter fiscal 2024 earnings per share (EPS) of $1.30, with revenue rising 4.7% to $8.09 billion. Both were above forecasts.
Sales at its heart devices unit, its biggest revenue source, were up 6.1% to $2.93 billion. Diabetes unit sales jumped 12.3% to $640 million. Those also exceeded estimates.
Medtronic now anticipates full-year EPS in a range of $5.19 to $5.21, up from its earlier outlook of $5.13 to $5.19.
Medtronic shares were 1.3% higher at $85.20 Tuesday afternoon.
Expeditors International Leads S&P 500 Lower as Sales, Earnings Disappoint
February 20, 2024 02:29 PM EST
Shares of Expeditors International of Washington (EXPD) tumbled Tuesday after the freight and logistics company reported sales and earnings declined in the…
Read More: Tech Leads Stocks Lower; Home Depot, Walmart Report Mixed Earnings