Nasdaq-100 futures fell and Wall Street’s key volatility gauge VIX climbed late Wednesday as investors dug into Nvidia’s Q2 earnings report that outstripped top-and-bottom line expectations.
Market Snapshot
At 07:27 p.m. ET, Dow E-minis were down 175 points, or 0.42%, S&P 500 E-minis were down 40.25 points, or 0.72% and Nasdaq 100 E-minis were down 231.5 points, or 1.19%. VIX jumped 11% to 17.11.
Market Movers
Nvidia — The artificial intelligence chipmaker dropped 7% as Nvidia failed to live up to investor hopes with its latest results on Wednesday, delivering an underwhelming forecast and news of production snags with its much-ballyhooed Blackwell chips. The company’s quarterly report — the most anticipated part of the tech industry’s earnings season — met or beat analysts’ estimates on nearly every measure. But Nvidia investors have grown accustomed to blowout quarters, and the latest numbers didn’t qualify.
Salesforce — The software stock advanced 3.5% after Salesforce reported better-than-expected fiscal second-quarter results and raised its full-year profit outlook. Separately, the company said President and Chief Financial Officer Amy Weaver will step down.
CrowdStrike — Shares popped 3.9% after the cybersecurity company exceeded fiscal second-quarter expectations on the top and bottom lines. CrowdStrike posted adjusted earnings of $1.04 per share, more than the LSEG consensus estimate of 97 cents in earnings per share. Revenue of $963.9 million came in above the expected $959 million.
HP — The tech stock dipped 3.6% after HP posted fiscal third-quarter earnings that disappointed expectations. Adjusted earnings of 83 cents per share did not meet the 86 cents in earnings per share analysts polled by LSEG were anticipating. However, revenue of $13.52 billion beat the consensus estimate of $13.38 billion.
Nutanix — The cloud infrastructure company surged 12%. Nutanix trounced Wall Street’s estimates in its fiscal fourth quarter, posting adjusted earnings of 27 cents per share on revenue of $548 million. Analysts surveyed by LSEG anticipated earnings of 20 cents per share and $537 million in revenue.
Affirm — Shares of the buy now, pay later provider leapt 15%. Affirm issued a rosy forecast for fiscal first-quarter revenue, calling for a range of $640 million to $670 million. Analysts polled by LSEG called for $625 million. Fiscal fourth-quarter results also came in ahead of Wall Street’s estimates.
Five Below — The discount retailer jumped nearly 7%. The top range of Five Below’s full-year guidance surpassed analysts’ estimates, with the company calling for adjusted earnings of $4.35 to $4.71 per share on revenue of $3.73 billion to $3.80 billion. Analysts polled by LSEG called for $4.69 per share in earnings and $3.78 billion in revenue.
Victoria’s Secret — The lingerie retailer advanced 3%. Victoria’s Secret raised its fiscal full-year outlook, calling for net sales to be down roughly 1% from the prior year, compared to its earlier forecast of “down low-single digits.” Analysts polled by FactSet were calling for a decline of 2.8%. Fiscal second-quarter results also beat the Street’s estimates on the top and bottom lines.
Okta — Shares dropped 6.7% even after Okta reported fiscal second-quarter earnings and revenue that topped analysts’ expectations, and issued rosy third-quarter guidance. Adjusted earnings of 72 cents came in above the 61 cents per share anticipated by analysts polled by LSEG. Revenue of $646 million exceeded the estimate of $633 million.
Pure Storage — Shares dropped 14% even after Pure Storage posted fiscal second-quarter results that bested analysts’ expectations. The data storage company earned 44 cents per share on an adjusted basis, more than the 37 cents per share anticipated by analysts, according to LSEG. Revenue of $763.8 million was more than the expected $755 million.
Veeva Systems — The cloud computing stock added more than 4% after Veeva Systems reported fiscal second-quarter earnings and revenue that exceeded estimates. Adjusted earnings of $1.62 per share came in above the FactSet consensus estimate of $1.53 per share. Revenue of $676.2 million was above the anticipated $667.8 million.
Market News
Tesla asked Canada for lower tariff on China-made EVs, government source says
Before Canada said this week it was imposing a 100% duty on Chinese-made electric vehicles, Tesla approached Ottawa and asked for a lower tariff on its autos, a Canadian government source said on Wednesday.
Canada, following the lead of the United States, said on Monday it was setting the tariff for all Chinese-made vehicles sold in the country because of what it called China's intentional, state-directed policy of over-capacity.
French authorities charge Telegram's Durov in probe into organized crime on app
A French judge put Telegram boss Pavel Durov under formal investigation on Wednesday in a probe into organized crime on the messaging app, but granted the entrepreneur bail on condition he pays 5 million euros, reports twice a week to police and does not leave French territory.
Paris prosecutor Laure Beccuau said in a statement the judge found there were grounds to formally investigate Durov on all the charges for which he was initially arrested four days ago.