Wall Street stocks ended higher on Monday following a market sell-off in previous sessions as investors eyed a busy week for quarterly results from key companies that would provide a glimpse of the U.S. economy's health.
Market Snapshot
The Dow Jones Industrial Average rose 253.58 points, or 0.67%, to 38,239.98, the S&P 500 rose 43.37 points, or 0.87%, to 5,010.60 and the Nasdaq Composite rose 169.30 points, or 1.11%, to 15,451.31.
Market Movers
Nvidia was up 4.35%. Shares of the artificial-intelligence chip maker declined 10% on Friday, the stock’s worst single-day percentage decline since it fell almost 19% on March 16, 2020, according to Dow Jones Market Data. Nvidia’s market cap dropped $212 billion on Friday, the most in a single day for the company. For all of last week, Nvidia fell nearly 14% as technology stocks, particularly those in the semiconductor sector, came under pressure.
Tesla shares were down 3.4% after the electric-vehicle company over the weekend cut U.S. prices for its Model Y, S, and X vehicles—the latest move in a continuing struggle to prop up sales despite weakening demand. The company also cut prices in China and Europe. Tesla shares were on pace to close lower for a seventh straight sessions. The drop Friday came after Tesla recalled nearly 4,000 Cybertruck vehicles.
U.S.-listed shares of Li Auto tumbled 5.6% after the Chinese EV maker also reduced prices in China.
Verizon Communications was down 4.7%. The telecommunications company said it lost a net 158,000 users in its consumer wireless postpaid phone business in the first quarter, an improvement from the 263,000 users lost a year earlier. Verizon also posted first-quarter adjusted earnings of $1.15 a share, 5 cents below what it reported a year earlier but better than analysts’ expectations of $1.12. Revenue of $32.98 billion, however, missed forecasts of $33.23 billion.
Shares of Super Micro Computer rose 0.5%. The stock plunged 23% on Friday after the artificial-intelligence hardware company said it would be reporting earnings April 30 but didn’t provide preliminary results for its fiscal third quarter. Investors were hoping for a positive update from the company. In January, for instance, 11 days ahead of earnings, Super Micro sharply increased its profit and sales outlook.
Merger talks between Salesforce and Informatica, the data-management software provider, have fizzled after the companies couldn’t agree on terms, The Wall Street Journal reported, citing people familiar with the matter. Earlier this month, the Journal reported the two companies were in discussions. The value of the deal was estimated at around $10 billion. Informatica said Monday it wasn’t engaged in merger talks. Salesforce shares were up 1.3%, while Informatica declined 11%.
Coinbase Global was up 7% as Bitcoin rise 3.2% to $66,664 after the cryptocurrency’s so-called halving late Friday. Bitcoin miner Riot Platforms surged 23%.
Newmont declined 4% and Barrick Gold was down 4%. Gold prices fell sharply as Middle East war tensions eased and investors pivoted to risker assets and away from safe havens.
Cardinal Health was down 5% after the company said it won’t be renewing a distribution contract with pharmacy benefits manager OptumRx.
Market News
Meta “Opening Up” Quest Headset Operating System to Rivals
Facebook parent Meta Platforms Inc. is “opening up” its Meta Quest headset operating system to other hardware makers, part of an effort to boost its standing in the nascent augmented reality and virtual reality industries.
The move means other technology companies will be able to build their own headsets using Meta’s operating system, Chief Executive Officer Mark Zuckerberg wrote Monday. Meta announced a few select early partners, including Microsoft Corp. and Lenovo Inc.
Boeing Expects Slower Increase in 787 Production Rate and Deliveries
Boeing expects a slower increase in the production rate and deliveries of its 787 widebody jets as the U.S. planemaker wrestles with supplier shortages "on a few key parts," an executive on the program told workers on Monday.
Boeing still plans to steadily increase its rate to meet "strong demand," according to the memo seen by Reuters from Scott Stocker, 787 vice president and general manager, to workers at its South Carolina facility.
SAP Cloud Revenue Meets Estimate as AI Adoption Fuels Demand
SAP SE reported first-quarter cloud revenue in line with analysts, as a boom in demand for artificial intelligence fueled the German software company’s growth.
Adjusted cloud revenue in the quarter rose 25% at constant currencies from a year earlier to €3.9 billion ($4.2 billion), the Walldorf-based company said in a statement Monday. That compares with the average estimate of €3.9 billion of analysts surveyed by Bloomberg.