Stock Indexes Wrap: Tech, Financials Lead Indexes Higher as Stocks Rebound from Sell-Off
14 hr 56 min ago
The Dow
Financials led markets higher on Monday, with Goldman Sachs (GS) advancing 3.3% and JPMorgan Chase (JPM) rising 2%.
Salesforce (CRM) rose 1.3% following reports that talks to acquire data management firm Informatica (INFA) had broken down. News of the possible acquisition sent Salesforce stock plummeting last week.
Visa (V) ticked up 0.9% ahead of its earnings report after the bell tomorrow.
Verizon (VZ) lost 4.6% after reporting revenue of $33 billion in the first quarter, up less than 1% from the year-ago quarter and less than analysts had forecast.
UnitedHealth Group (UNH) shed 2% after gaining more than 14% last week following a better-than-expected earnings report.
The S&P 500
United Airlines (UAL) rose 5%, continuing last week’s surge following a better-than-expected first-quarter report. Delta Air Lines (DAL) and American Airlines (AAL) rose 3.1% and 3%, respectively.
Truist Financial (TFC) climbed 3.4% after topping profit estimates in the first quarter.
Cardinal Health (CAH) fell 4.9% after reporting it would not renew its contract with pharmacy benefits provider OptumRx, a UnitedHealth subsidiary, in June.
Newmont (NEM) slid 4% as gold futures slumped following a weeks-long rally.
AT&T (T) fell 1.2% following Verizon’s earnings report.
The Nasdaq 100
Nvidia (NVDA) rose 4.4%, rebounding somewhat from Friday when the stock lost 10% of its value in its biggest single-day drop since 2020.
Other chip stocks followed Nvidia higher. Micron (MU) rose 2.2%, while Qualcomm (QCOM) and Broadcom (AVGO) each advanced 1.6%.
Tesla (TSLA) tumbled 3.4% after cutting prices on most models in several key markets, including China and the U.S.
Verizon Stock Tumbles as Q1 Revenue Comes Up Short
15 hr 43 min ago
Shares of Verizon Communications (VZ) fell Monday after the telecommunications giant reported first-quarter revenue that lagged analyst expectations, overshadowing a beat on the bottom line.
The company reported $32.98 billion in total revenue, just under analyst estimates compiled by Visible Alpha of $33.2 billion. However, Verizon did report a slight profit beat, posting net income of $4.72 billion, topping projections of $4.61 billion. Diluted earnings per share (EPS) of $1.09 matched estimates.
After rising in premarket trading following the results, Verizon shares were down more than 4% late in the session Monday.
Revenue from Verizon’s consumer services, which includes wireless phone service and broadband internet, rose slightly year-over-year as the company said higher prices and flexible plans offset lower equipment sales volumes and fewer phone upgrades.
The company said the first-quarter performance keeps it on track to meet its prior full-year guidance of wireless revenue growth of 2% to 3.5%, and adjusted EPS of $4.50 to $4.70.
Cardinal Health Loses Contracts With UnitedHealth’s OptumRX, Stock Slips
16 hr 35 min ago
Cardinal Health (CAH) shares fell in intraday trading Monday after the health insurer reported that its contracts with UnitedHealth Group’s (UNH) pharmacy benefits subsidiary wouldn’t be renewed.
The company explained that the agreements with OptumRX will expire at the end of June. It noted sales to OptumRX provided 16% of its revenue in 2023.
Cardinal Health noted that it anticipates partially offsetting the impact “through a combination of new customer wins, specialty growth and other actions.”
Shares of Cardinal Health were down 3.8% to $104.10 Monday afternoon.
So, Bitcoin Halving Is Done. Now What?
17 hr 22 min ago
The highly-anticipated fourth iteration of the bitcoin halving occurred a little after 8:09 p.m. Eastern on Friday. Bitcoin was up more than 3% at about $66,600 Monday afternoon.
In the past, halvings have led to new all-time highs for the bitcoin price in the months following the events. However, this time has been different, as the bitcoin price has already reached a new all-time in the months prior to the halving.
Analysts at JPMorgan and Deutsche Bank have said that the impact of this halving was mostly baked into pre-halving prices and that there isn’t likely to be a large upward movement in the price in its aftermath.
By their estimation, the near-term effects of the halving may be limited to the bitcoin mining sector, where consolidation could occur as overall hashrate declines due to decreased profitability.
Informatica Stock Tumbles After Ending Speculation About Salesforce Buyout
18 hr 29 min ago
Data management company Informatica (INFA) is officially off the market, it said Monday, after negotiations with Salesforce (CRM) reportedly fell apart.
Earlier this month, The Wall Street Journal reported that the companies were in “advanced talks” on a deal that would have led to Salesforce acquiring Informatica for about $10 billion. However, on Sunday the Journal reported that the talks had fallen apart after the sides could not agree on terms.
On Monday, Informatica released a statement saying it “is not currently engaged in any discussions to be acquired,” despite its policy of not commenting on market rumors or media reports.
Informatica shares were down 8.9% at $32.07 early Monday afternoon, while Salesforce was up 1% to $273.
Truist Rises on Q1 Profit Beat, Despite Warning on Full-Year Revenue
19 hr 21 min ago
Shares of Truist Financial (TFC) advanced Monday as the financial services provider posted a quarterly profit beat, but warned about revenue the rest of the year.
Truist reported first-quarter adjusted earnings per share (EPS) of $0.90, beating estimates, but revenue dropped 8.8% to $4.87 billion, short of forecasts.
Truist’s net interest income declined 4.2% to $3.43 billion, missing expectations, and net income margin slid 7 basis points (bps). The bank blamed “lower earning assets and higher funding costs.” However, noninterest income jumped 6.1% to $1.45 billion on higher investment banking and trading income.
The company predicted full-year taxable-equivalent revenue to fall 4% to 5%, down from its previous outlook of a dip of 1% to 3%.
Truist Financial shares were up 2.3% to $37.65 midday Monday.
What Does the S&P 500’s 6-Day Losing Streak Portend?
20 hr 5 min ago
The S&P 500 fell for a sixth consecutive day on Friday, notching its longest losing streak since October 2022. So what’s next for the index?
According to data from investment management firm LPL Financial, the rough patch may not be the omen it appears.
The worst of it is that the odds of the S&P 500 falling for a seventh consecutive day is about 40%, according to chief technical strategist Adam Turnquist.
But on average, the S&P 500 returns about 0.3% in the week after a 6-day losing streak and is positive over that week about 60% of the time. The average 12-month return is more than 13%, and the index rises over that period 79% of the time.
Of course, past performance is no guarantee of future returns, but after last week’s sell-off, history is on the side of the bulls.
Tesla Stock Drops After EV Maker Cuts Prices in US and Other Key Markets
20 hr 54 min ago
Tesla (TSLA) shares fell nearly 3% in early trading Monday after the electric-vehicle (EV) maker followed up a round of U.S. price reductions announced on Friday with discounts on a range of models in other key markets, including China and Germany, as the company aims to boost demand amid heightened competition.
On Friday, Tesla shaved $2,000 off the price tag of its Model Y, Model X, and Model S vehicles in the U.S., while reducing the price of its Full Self-Driving driver-assistance software to $8,000 from $12,000.
In China, the EV maker reduced the price of its Model 3 by 14,000 yuan to 231,900 yuan, roughly $32,000, according to the company’s website on Sunday. Meanwhile, the company slashed the price of its rear-wheel-drive Model 3 in Germany to 40,990 euros, approximately $43,670, from 42,990 euros.
Taking a looking at Tesla’s weekly chart, the 50-day moving average crossed below the 200-day moving average last month to form a death cross, an ominous chart pattern that indicates a downward trend. Indeed, the price closed last week below the lower trendline of a descending channel, opening the door for further declines leading into the company’s earnings release on Tuesday.
However, if selling pressure continues in the weeks ahead, investors should keep a close eye on the January 2023 swing low at $101.81, an area on the chart that would likely attract significant buying interest, especially given the region sits close to the psychological $100 level.
Stocks Making the Biggest Moves Premarket
21 hr 43 min ago
Gains:
- Salesforce (CRM): Shares rose more than 3% after the Wall Street Journal reported acquisition talks between the enterprise software company and data management firm Informatica (INFA) had fallen apart. Informatica shares fell more than 5%.
- Verizon (VZ): Shares of the telecom rose more than 2% after it reported better-than-expected earnings in the first quarter amid a rebound at its business services unit.
- Coinbase (COIN): Shares of the cryptocurrency exchange ticked up about 2% as bitcoin rose after last Friday’s halving.
Losses:
- Tesla (TSLA): Shares of the electric vehicle maker were down more than 4% after cutting prices on most models in China as it competes with local rivals like Li Auto (LI), which also slashed prices and saw its shares decline more than 8% in premarket trading.
- Newmont (NEM): Shares of one of the world’s largest gold miners fell about 3% as gold futures slumped after a massive run-up amid geopolitical and inflation concerns.
- Taiwan Semiconductor Manufacturing Co. (TSM): Shares of the contract chipmaker fell more than 1%, extending last week’s declines that followed a disappointing forecast for the global semiconductor industry this year.
Stock Futures Rise To Start Week of Big Tech Earnings
22 hr 4 min ago
Futures contracts connected to the Dow Jones Industrial Average were up 0.6% in premarket trading on Monday.
S&P 500 futures also traded 0.6% higher.
Nasdaq 100 futures were up 0.7% a little under an hour before markets opened.
