Equity Indexes Wrap: Mag Seven (Minus Nvidia) Weighs on Indexes; Discount Retailers, Energy Gain
17 hr 14 min ago
The Dow
Walmart (WMT) gained 1.2% after competitor Target reported better-than-expected earnings.
Intel (INTC) led the index lower, falling 5.4%. It was followed by tech peers Salesforce (CRM), down 5%, and Microsoft (MSFT), down 3%. Amazon (AMZN) shed 2%.
Apple (AAPL) fell 2.8% after a report suggested iPhone sales in China fell 24% year-over-year in the first six weeks of the year.
The S&P 500
Target (TGT) soared 12% after its quarterly earnings topped Wall Street estimates.
Dialysis provider DaVita (DVA) gained 7.1% after data showed Novo Nordisk’s (NVO) Ozempic was a less effective treatment for kidney disease than analysts had expected.
Regional bank stocks advanced. Citizens Financial Group (CFG) rose 5.2%, Zions Bancorp (ZION) advanced 4.5%, and Comerica (CMA) gained 3.8%.
Nvidia (NVDA) was the only stock in the Magnificent Seven to rise on Tuesday. It rallied the last 30 minutes of the session to close 0.9% higher.
Albemarle (ALB) plummeted 17.9% after it announced a $1.75 billion depositary shares offering as it seeks to weather a prolonged slump in lithium demand and prices.
Meta Platforms (META) slipped 1.5% amid widespread Facebook, Instagram, and Threads outages.
Advanced Micro Devices (AMD) ticked down 0.1% after the Commerce Department said the chip maker would still need a license to sell to China a semiconductor that was specially designed to meet U.S. export controls.
The Nasdaq 100
Energy stocks advanced as investors shunned growth in favor of value. Baker Hughes (BKR) added 2.5% and Diamondback Energy (FANG) rose 0.7%.
Dollar Tree (DLTR) gained 1.8% after Guggenheim raised its price target to $170 from $155 and reiterated its buy rating.
The index’s highest-flying tech stocks were some of its largest losers on Tuesday. MongoDB (MDB), up more than 80% in the past year, fell 7.7% while CrowdStrike Holdings (CRWD), which has seen its share price more than double in the last 12 months, tumbled 5.2%.
Tesla (TSLA) fell 3.9% after a suspected arson forced it to halt production at its Berlin factory.
Starbucks (SBUX) dipped in the market sell-off even though a coalition of unions representing its workers withdrew its board nominees, citing progress in negotiations.
GitLab Stock Plunges After Issuing Disappointing FY Earnings Guidance
17 hr 57 min ago
GitLab (GTLB) shares plunged Tuesday after the software infrastructure company disappointed investors with weak full-year earnings guidance.
The San Francisco-based company, which operates an open-source repository development platform for coders, said it expects full-year fiscal 2025 adjusted earnings of between 19 and 23 cents per share, with the high end of that forecast coming in significantly below Wall Street’s modeling of 35 cents a share.
For the fiscal 2024 fourth quarter, ending Jan. 31, the company disclosed adjusted earnings of 15 cents per share on revenue of $163.8 million, surpassing analysts’ expectations of 8 cents a share on sales of $157.9 million.
GitLab shares have carved out a textbook inverse head and shoulders pattern over the past 18 months—a chart formation that often signals a market bottom. However, the price looks set to break down below the pattern’s neckline after the company’s disappointing earnings outlook.
Investors should keep an eye on the $57.50 level, which may find support from a trendline connecting the formation’s head and right shoulder. A close below the right shoulder would invalidate the pattern and could lead to a retest of the stock’s record low at $26.24 set in May last year.
GitLab shares were down 20.5% at $59.21 with about half an hour left in the session.
Albemarle Tumbles on $1.75 Billion Depositary Shares Offering
18 hr 44 min ago
Shares of lithium miner Albemarle (ALB) plummeted Tuesday after the company said it would sell $1.75 billion of depositary shares in a public offering as it seeks to weather a prolonged slump in lithium prices.
Each depositary share will represent a 1/20th interest in a share of preferred stock, and holders of the depositary shares will be entitled to a proportional interest in the rights of preferred stockholders. The terms of the listing also give the offering’s underwriters a 30-day option to purchase up to an…
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