U.S. stocks closed higher to record their sixth gain in seven sessions in muted trading on Tuesday, buoyed by gains in technology shares as expectations the Federal Reserve will cut interest rates next week remain elevated.
Market Snapshot
Dow Jones up 0.39% at 47,474.46; S&P 500 up 0.25% at 6,829.37; Nasdaq Composite up 0.59% at 23,413.67.
Market Movers
Boeing jumped 10%. At a UBS conference on industrials and transportation, Chief Financial Officer Jay Malave said November production rollouts are in line with the company's expectations. Boeing sees higher deliveries for the 737 and 787 in 2026, and expects the 737 MAX 10 to be certified by the end of the year.
Intel stock price rose more than 8% on Tuesday after TF International analyst Ming-Chi Kuo posted on X Friday that the company is expected to begin building Apple's (AAPL) M series chips for its MacBook Air and iPad Pro as soon as early 2027.
Apple rose 1.1% to hit a record closing high at $286.19 . Shares have closed higher for seven straight sessions. The iPhone maker is shaking up to its AI team as it struggles to find its footing in a post-ChatGPT world. John Giannandrea, the company's senior vice president of machine learning and AI strategy, is retiring, with more of his portfolio getting spread out through Apple's organization.
Shares of MongoDB Inc. surged 22% after the company raised its full-year outlook, a sign the AI boom is stoking demand for its data-storage product. MongoDB now forecasts annual adjusted earnings per share of $4.76 to $4.80 -- more than $1 above its previous guidance of $3.64 to $3.73.
Credo Technology rose 10%. The company, which makes high-speed connectivity solutions for data centers, topped Wall Street's targets for fiscal second-quarter earnings and revenue. The excitement around AI has helped Credo sell more of its active electrical cables, which are copper-based cables used to attach AI servers to networking switches.
Warner Bros. Discovery was up 2.8% after a report signaled that a bidding war for the entertainment company was heating up. Streamer Netflix has sweetened its offer for Warner Bros. and Paramount Skydance and Comcast also have submitted second bids, The Wall Street Journal reported, citing people familiar with the matter. Warner Bros., Netflix, Paramount, and Comcast didn't immediately respond to Barron's requests for comment.
Synopsys gained 2.5%. The stock looked set to add to a 4.9% rally from the previous session. Shares jumped on Monday after chip maker Nvidia said it had taken a $2 billion stake in Synopsys, which provides the electronic automation software that is used to design semiconductors.
Janux Therapeutics, Inc. sank 53%. The small biopharma company shared what it described as "positive trial data" for JANX007, its therapy for late-stage prostate cancer. H.C. Wainwright analyst Swayampakula Ramakanth called the results "mixed."
Signet Jewelers tumbled 6.8%. The parent company of Zales and Kay Jewelers posted fiscal third-quarter earnings that topped expectations but projected a difficult holiday season. The retailer sees sales in the range of $2.24 billion to $2.37 billion for the fiscal fourth quarter, below analysts' calls for $2.38 billion at the midpoint.
Ford Motor declined 1.5%. The auto maker said it sold just under 165,000 vehicles of all types in the U.S. last month, down 1% from the previous year. Notably, Ford sold 4,247 all-electric cars, marking a 61% drop from last year and a 10% decrease from October.
Teradyne climbed 5.7% after Stifel upgraded the stock to Buy from Hold with a $225 price target, up from $162. In afternoon trading, the share price was $190.82. The firm expects Teradyne, which makes test systems for semiconductors and robotics, to gain share in the market for AI GPU and application-specific integrated circuit testing.
Pure Storage — Shares of the data management and storage company plunged nearly 9% after Pure Storage reported third-quarter adjusted earnings of 58 cents per share that matched consensus expectations, according to LSEG. The company posted revenue for the period of $964.5 million, up 16% year-over-year, which exceeded the $956 million expected from analysts polled by LSEG.
CrowdStrike Holdings — The cybersecurity provider fell less than 1% after posting third-quarter earnings and revenue, and issuing full-year earnings guidance that topped analyst estimates, as compiled by LSEG. CrowdStrike has rallied 25% over the past three months.
Okta — Shares of the identity management provider fell more than 4% after Okta CEO Todd McKinnon said upside from its AI agents aren’t “fully baked” into results. Still, Okta beat third-quarter estimates and gave an upbeat outlook. The company earned 82 cents per share, on an adjusted basis, on revenue of $742 million. Analysts polled by LSEG forecasted earnings of 76 cents per share on revenue of $730 million.
GitLab — The software development tool company’s stock fell nearly 8% despite third-quarter results that outpaced expectations. GitLab also named Jessica Ross as its chief financial officer. The company now expects to earn 95 cents to 96 cents per share after adjustments for the full year, up from a prior forecast of 82 cents to 83 cents per share. Revenue for the year should land in the range of $946 million to $947 million, compared with $936 million to $942 million previously.
Marvell Technology — Shares of the integrated circuit manufacturer rose more than 15%. The company’s third-quarter earnings per share of 76 cents per share after adjustments beat analysts’ consensus estimate of 73 cents, and revenue of $2.08 billion was above an expected $2.07 billion, according to an LSEG survey of Wall Street. Marvell had run up 44% in the past three months ahead of the results.
American Eagle Outfitters — The apparel retailer’s stock jumped nearly 10% after it said the holiday shopping season is off to a strong start. American Eagle raised its same-store sales forecast for the fiscal fourth quarter to a range of 8% to 9%. Previously, it had anticipated a low single-digit gain. The company’s fiscal third-quarter results also topped expectations.
Asana, Inc. — The stock rose about 4% in extended trading after Asana, an enterprise work management software platform, beat Wall Street’s third-quarter estimates on top and bottom lines. The company also lifted its fourth-quarter earnings and revenue forecast.
Box — The content management company saw shares fall about 5% in extended trading. For the third quarter, Box earned 31 cents per share after adjustments, while analysts polled by FactSet expected 32 cents per share. Box’s revenue for the period slightly exceeded consensus expectations.
Market News
OpenAI CEO Sam Altman declares 'code red' as ChatGPT competition mounts
OpenAI CEO Sam Altman has issued an urgent memo to employees to accelerate improvements to ChatGPT as competition intensifies from rival AI developers Google (GOOG, GOOG) and Anthropic.
Altman told employees in an internal memo on Monday that he was declaring a "code red" to dedicate resources toward bettering ChatGPT, given the pressure from rivals, The Information reported. The move will delay OpenAI's work of introducing other products, such as AI agents, the outlet said.
Marvell to acquire Celestial AI for as much as $5.5 billion
Semiconductor company Marvell on Tuesday announced that it will acquire Celestial AI for at least $3.25 billion in cash and stock.
The purchase price could increase to $5.5 billion if Celestial hits revenue milestones, Marvell said.
