Wall Street's three major indexes closed higher on Wednesday as economic data and comments from Federal Reserve Chair Jerome Powell reinforced expectations that the U.S. central bank would reduce its benchmark interest rate this year.
Market Snapshot
The Dow Jones Industrial Average rose 75.86 points, or 0.20%, to 38,661.05. The S&P 500 gained 26.11 points, or 0.51%, at 5,104.76 and the Nasdaq Composite added 91.96 points, or 0.58%, at 16,031.54.
Market Movers
Tesla (TSLA) - Tesla shares fell 2.3%, losing ground for its third straight day. A closely watched Morgan Stanley analyst lowered his price target on the stock, saying that electric-vehicle demand was continuing to weaken in key markets including China despite hefty price cuts. Also a Baird analyst said Telsa's first-quarter earnings were at risk, suggesting delivery estimates still need to go lower.
Palantir (PLTR) - Palantir Technologies was up 9.9% after winning a $178.4 million contract from the U.S. Army for a project known as TITAN, an acronym for Tactical Intelligence Targeting Access Node, mobile ground stations powered by artificial intelligence and machine-learning technology.
CrowdStrike (CRWD) - CrowdStrike Holdings earned 22 cents a share in its fourth quarter, swinging from a year-earlier loss of 20 cents. Adjusted earnings of 95 cents a share topped forecasts of 82 cents and revenue rose 33% to $845.3 million, also beating Wall Street estimates. CrowdStrike said it expects fiscal 2025 revenue of $3.93 billion to $3.99 billion compared with forecasts of $3.94 billion. It expects adjusted profit of $3.77 to $3.97 a share versus expectations of $3.76. The stock rose 10.8%.
JD.com (JD) - U.S.-listed shares of JD.com jumped 16.2% after the Chinese online retailer reported fiscal fourth-quarter adjusted earnings and revenue that beat analysts’ estimates and announced a new buyback program of up to $3 billion.
Super Micro Computer (SMCI) - Super Micro Computer rose 3.1% to $1,124.70 after shares of the server maker were initiated with a Buy recommendation at Argus with a price target of $1,350.
New York Community Bancorp (NYCB) - New York Community Bancorp tumbled as much as 45% but rallied to close 7.5% higher after it announced a $1 billion equity injection from a group that includes the investment firm run by former Treasury Secretary Steven Mnuchin.
Foot Locker (FL) - Foot Locker tumbled 29.4% after the footwear retailer’s outlook for the current fiscal year missed analysts’ estimates. The company said it expects adjusted earnings of $1.50 to $1.70 a share, below analysts’ consensus of $1.86.
Nordstrom (JWN) - Nordstrom posted fiscal fourth-quarter adjusted earnings that were better than expected but shares of the department-store chain fell 16.1% after it issued guidance that missed estimates. Nordstrom said current fiscal-year earnings will range between $1.65 and $2.05 a share. The midpoint of the guidance, at $1.85 a share, was well below analysts’ forecasts of $2.01. Nordstrom forecast fiscal-year same-store sales within a range of down 1% to up 2%, with the midpoint below analysts’ estimates for a 1.4% gain.
Couchbase (BASE) - Couchbase rose 4% after fourth-quarter revenue jumped 20% and the software company said it expects first-quarter revenue of $48.1 million to $48.9 million, better than estimates of $47 million.
Box (BOX) - Shares of Box rose 8.6% after the online document storage company announced an integration between its document storage and management system with Microsoft’s Azure OpenAI service. Box also reported fourth-quarter earnings that rose sharply from a year earlier and said it would be expanding its buyback program by $100 million. “Box is at the center of some of the most important trends in technology history as companies look to digitize and automate their businesses, accelerate innovation with the power of AI and protect their most important data,” said CEO Aaron Levie in a statement.
Oddity Tech (ODD) - Oddity Tech, which uses artificial intelligence to help shoppers find beauty and wellness products that best serve their needs, reported fourth-quarter adjusted earnings that easily beat expectations and issued guidance for the current fiscal year that was better than anticipated. The stock, however, fell 4.5%.
SoFi Technologies (SOFI) - SoFi Technologies rose 1.8%. Shares of the financial-technology company fell 15% on Tuesday, the stock’s worst single-day percentage decline on record, after it announced plans to offer $750 million of convertible senior notes due in 2029.
Market News
Fed's Powell Still Expects Rate Cuts, but Inflation Progress "Not Assured"
U.S. Federal Reserve Chair Jerome Powell, avoiding disputes over fiscal policy, energy, housing, Ukraine and other tangled issues, told U.S. lawmakers on Wednesday he and his colleagues would “keep our heads down” in a charged presidential election year, with interest rate cuts still likely in coming months but only if warranted by further evidence of falling inflation.
Rate cuts "really will depend on the path of the economy. Our focus is on maximum employment and price stability, and the incoming data as they affect the outlook, and those are the things we'll be looking at," Powell told the House Financial Services Committee. "We are just going to keep our heads down and do our jobs and try to deliver what the public is expecting from us."
Powell in his prepared remarks to the House panel said rate reductions will "likely be appropriate" later this year, "if the economy evolves broadly as expected" and once officials gain more confidence in inflation's steady decline.