U.S. stocks advanced to close higher on Wednesday, as a flurry of economic data kept expectations elevated for an interest rate cut by the Federal Reserve next week, while a fall in Microsoft's shares curbed the advance.
Market Snapshot
The Dow Jones Industrial Average rose 408.44 points, or 0.86%, to 47,882.90, the S&P 500 gained 20.35 points, or 0.30%, to 6,849.72 and the Nasdaq Composite gained 40.42 points, or 0.17%, to 23,454.09.
Market Movers
Shares of iRobot, Richtech Robotics and Serve Robotics Inc. climbed following a report that the Trump administration is working on accelerating development of the robotics sector. IRobot surged 74%; Richtech and Serve rose 18%.
Marvell Technology rose 7.9%. The chip maker beat Wall Street's third-quarter earnings and revenue targets and forecast stronger-than-expected growth for its data center segment. Marvell also announced that it would be acquiring AI start-up Celestial AI in a cash-and-stock deal valued at approximately $3.25 billion.
CrowdStrike gained 1.6%. The cybersecurity company narrowly topped analysts' estimates for its third-quarter earnings and revenue and issued solid fourth-quarter guidance. Investors may have been looking for an excuse to dump shares. CrowdStrike trades at 79 times projected free-cash-flow-per-share for the next 12 months.
Microsoft dropped 2.5% on a report that it was easing sales quotas for enterprise AI products like Microsoft 365 Copilot. Although the company has talked up Copilot during calls and events, it hasn't provided firm figures on sales. A Microsoft spokesperson said "aggregate sales quotas for AI products have not been lowered."
Crypto stocks were rallying as Bitcoin gained 1.9% to $92,839 over the past 24 hours, according to CoinDesk. Strategy, a big holder of the coins, advanced 3.9%, adding to a 5.8% gain from the previous session. Trading platforms Coinbase Global and Robinhood Markets were up 5.2% and 6.1%, respectively.
American Eagle Outfitters surged 15% after the apparel retailer reported record sales and better-than-expected quarterly earnings. Comparable sales climbed 4% from a year ago, reflecting the success of recent marketing campaigns featuring the likes of Sydney Sweeney and Travis Kelce.
Dollar Tree gained 3.6%. The discount retailer posted fiscal third-quarter adjusted earnings of $1.21 a share, topping analysts' calls for $1.08. Management raised its earnings outlook for the fiscal year.
Delta Air Lines rose 3.6%. The carrier said demand in the final quarter of the year "remains healthy," and trends are strong for early 2026. Growth in travel bookings now has returned to initial expectations after softening in November as a result of the government shutdown.
Macy's pared back earlier losses and rose 1.2%. While the department store chain beat earnings expectations in the third quarter and posted its strongest comparable sales growth in 13 quarters, management's forecast of fourth-quarter earnings fell short of what Wall Street had penciled in.
GitLab slumped 13% after the software company swung to a loss in the fiscal third quarter, even as revenue grew 25% and adjusted earnings topped expectations. Mizuho analyst Gregg Moskowitz noted that the beat was "more modest than expected amid public sector softness." GitLab cited weakness resulting from the U.S. government shutdown.
Acadia Healthcare was down 11%. The company, which operates a network of mental health and addiction treatment facilities, reduced its fiscal-year outlook. Management cited higher-than-expected costs from patient-related litigation.
Microchip Technology jumped 12%. The semiconductor company raised its guidance for the fiscal third quarter to the higher end of prior ranges. "Our bookings activity has remained strong through November with backlog filling in better than expected in the current quarter and growing nicely into the March 2026 quarter," said CEO Steve Sanghi.
Box reversed earlier losses and rose 6.7%. A beat on revenue, which Box attributed to demand for its AI-powered content-management platform, overshadowed third-quarter adjusted earnings, which missed analysts' estimates.
Pure Storage sank 27%. The data-storage company's third-quarter earnings met analysts' expectations, but profit fell from a year earlier as operating expenses rose.
Okta gained 5.5% after the identity-security company beat analysts' targets for third-quarter earnings and revenue. Okta also raised its forecasts for revenue and adjusted earnings for the year.
Salesforce — Shares of the software company rose more than 5% in extended trading after Salesforce posted mixed third-quarter results, but guided its fourth-quarter revenue higher. Salesforce earned $3.25 per share, excluding items, in the latest quarter, topping the LSEG estimate of $2.86 per share. Revenue of $10.26 billion fell just short of the $10.27 billion consensus forecast. For the full year, Salesforce raised its revenue outlook to between $41.45 billion and $41.55 billion.
UiPath — The business automation software provider jumped 6% postmarket after third-quarter adjusted earnings of 16 cents per share and revenue of $411 million topped analysts’ consensus estimate of 15 cents and $393 million, respectively, according to LSEG data.
Snowflake — The cloud-based data storage stock slid more than 8% after Snowflake gave a slightly disappointing outlook for its product revenue growth for the January quarter. Still, the company reported a beat on top and bottom lines for its third quarter. Expectations were high heading into the results, with the stock up 72% year to date.
Five Below — The discount retailer reported blowout third-quarter results, leading the stock about 4% higher in the after-hours session. Five Below posted adjusted earnings per share of 68 cents, nearly three times higher than analysts’ estimate of 24 cents, per LSEG. The company’s revenue of $1.04 billion also flew past analysts’ call of $980 million.
C3.ai — Shares of C3.ai dipped more than 1% after the company reported a beat on adjusted loss per share and subscription revenue, but missed gross margin expectations. The company’s fiscal second-quarter adjusted loss of 25 cents per share widened from a loss of 6 cents per share a year earlier. Analysts polled by LSEG had expected a loss of 33 cents per share.
PVH Corp. — Shares of the Calvin Klein and Tommy Hilfiger brands fell nearly 3% as the company narrowed its sales and earnings forecasts to the upper end of its prior guidance. The revised forecast follows better-than-expected fiscal third-quarter results. For the fiscal year, PVH expects adjusted earnings of between $10.85 to $11.00 per share, compared with a prior estimate of $10.75 to $11 per share. Revenue is expected to increase at a low single-digit pace.
Market News
Trump praises Nvidia CEO Jensen Huang after discussion about export controls
U.S. President Donald Trump said on Wednesday he had visited with Nvidia's CEO Jensen Huang and said the chip giant executive was aware of where he stood on export controls.
"Smart man," Trump said about Huang when asked about the meeting. Pressed on whether he had made clear to Huang his views on export controls and the types of chips that the company could give to China, Trump said: "He knows."
Push is on in US Congress to impose ban on lawmaker stock trades
A bipartisan coalition in the U.S. Congress is seeking action to ban lawmakers from buying and selling individual stocks, a practice that has long raised ethics questions and is stoking infighting among lawmakers over how deeply to regulate their personal finances.
Republican Representative Anna Paulina Luna of Florida late on Tuesday kicked off a drive to force votes in the House of Representatives on a bipartisan bill with more than 100 co-sponsors.
