U.S. stocks rallied on Thursday as investors weighed the Federal Reserve's more dovish-than-expected interest rate guidance on Wednesday against a plethora of mixed earnings and economic data.
Market Snapshot
The Dow Jones Industrial Average rose 322.37 points, or 0.85%, to 38,225.66. The S&P 500 gained 45.81 points, or 0.91%, at 5,064.2 and the Nasdaq Composite added 235.48 points, or 1.51%, at 15,840.96.
Market Movers
Apple (AAPL) - Apple rose 2.2% ahead of its earnings report. Wall Street expects it to post fiscal second-quarter earnings of $1.51 a share on revenue of $90.4 billion, down 4.5% from a year earlier. The key to Apple’s earnings always has long been the iPhone, which accounts for more than half of the company’s total revenue. Wall Street expects iPhone revenue to fall 9.8% from a year earlier to $46.3 billion, pressured in part by weak demand and competition in China.
Carvana (CVNA) - Carvana surged 33.8% after the online used-car seller reported a surprise first-quarter profit of 23 cents a share, well ahead of analysts’ estimates that called for a loss of 64 cents. A year earlier, Carvana lost $1.51 a share.
First-quarter revenue rose 17% to $3.1 billion, and Carvana said it sold 91,878 vehicles at retail in the period, up 16% from a year earlier. For the second quarter, Carvana said it expects a sequential increase in adjusted earnings before interest, taxes, depreciation and amortization and the year-over-year growth rate for retail vehicles sold.
Fastly (FSLY) - Fastly was down 32% after the internet infrastructure and security software provider issued an outlook for the second quarter and year that was well below Wall Street estimates. For the year, Fastly said it anticipates revenue of between $555 million and $565 million and an adjusted loss of 6 cents to 12 cents a share. Analysts had been expecting revenue of $584.7 million and an adjusted loss of 4 cents a share.
Peloton (PTON) - Peloton Interactive fell 2.8% after the at-home fitness company said its CEO was stepping down and that it would be cutting 15% of its global workforce. The company also said fiscal third-quarter revenue fell to $717.7 million from $748.9 million a year earlier.
Wayfair (W) - Wayfair jumped 16%. The online furniture company reported higher first-quarter sales and said its number of active customers grew 2.8% to 22.3 million in the period.
Howmet Aerospace (HWM) - Howmet Aerospace rose 15.5%. The supplier reported first-quarter earnings that beat estimates and said it expects a full-year profit of $2.35 a share. That compares with a prior call for $2.15.
C.H. Robinson Worldwide (CHRW) - C.H. Robinson Worldwide was up 12.3% after the freight broker posted first-quarter adjusted earnings of 86 cents a share, better than analysts’ estimates of 63 cents. Revenue in the period fell 4.3% from a year earlier to $4.41 billion.
Moderna (MRNA) - Moderna reported a narrower-than-expected first-quarter loss as revenue of $167 million topped estimates of $93 million. The company maintained its financial guidance for the fiscal year, saying it continues to expect revenue of $4 billion. Shares of the vaccine maker were up 12.7%.
Qualcomm (QCOM) - Qualcomm reported fiscal second-quarter adjusted earnings of $2.44 a share on revenue of $9.39 billion, beating analysts’ estimates on both metrics. The maker of semiconductors for mobile phones said it expects revenue of $8.8 billion to $9.6 billion in the third quarter, compared with forecasts for just more than $9 billion. CEO Cristiano Amon said on a conference call that Qualcomm was “extremely well-positioned to capitalize” on growth opportunities in artificial intelligence. The stock was up 9.7%.
Novo Nordisk (NVO) - U.S.-listed shares of Novo Nordisk were down 4%. The Danish pharmaceutical company boosted its full-year guidance as sales of its Ozempic diabetes drug rose 42% in the first quarter from a year earlier. Sales of the obesity treatment Wegovy more than doubled but nonetheless fell short of expectations.
DoorDash (DASH) - Shares of DoorDash slid 10.3% after the food-delivery company reported a first-quarter loss that was wider than analysts’ estimates. Revenue was $2.51 billion, up 23% from a year earlier and beating estimates of $2.45 billion.
Gross order value in the period rose 21% to $19.2 billion. DoorDash, however, said it expects gross order value of $19 billion to $19.4 billion in the second quarter, and its midpoint was below estimates for $19.22 billion.
Qorvo (QRVO) - Chip maker Qorvo fell 14.5% after the firm said it expects fiscal first-quarter adjusted earnings of 60 cents to 80 cents a share, well below analysts’ forecasts of $1.27.
Zillow (Z) - Real estate marketplace operator Zillow reported better-than-expected first-quarter revenue as its rentals and mortgages businesses increased but the stock was down 4.9% after the company forecast second-quarter sales below expectations, saying that activity for first-time home buyers “has underperformed the overall mortgage buyer market year to date.” Zillow expects revenue of $525 million to $540 million in the second quarter, below expectations of $559 million.
Etsy (ETSY) - Etsy fell 15.1% after gross merchandise sales in the first quarter fell 3.7% from a year earlier to $2.99 billion. Earnings of 48 cents a share matched analysts’ estimates while revenue came in slightly below. “Our first-quarter performance, while in line with our guidance, was pressured by the challenging environment for consumer discretionary products, which continues to be a headwind to Etsy marketplace growth,” said CEO Josh Silverman.
Freshworks (FRSH) - Freshworks declined 19.6% after it posted first-quarter adjusted earnings that beat estimates but issued second-quarter and full-year guidance that was slightly shy of analysts’ expectations. The provider of IT services management and customer support software also announced that it had named a new chief executive.
Market News
Apple Unveils Record $110 Billion Buyback As Results Beat Low Expectations
Apple's quarterly results and forecast beat modest expectations on Thursday, as the iPhone maker unveiled a record share buyback program, sending its stock up almost 7% in extended trade.
Apple increased its cash dividend by 4% and authorized an additional program to buy back $110 billion of stock. The buyback is the largest in the company's history, according to Investing.com analyst Thomas Monteiro.
Apple's quarterly revenue fell, but less than analysts had expected, and CEO Tim Cook said revenue growth would return in the current quarter.
The results and guidance suggest the company may be regaining its footing in the smartphone market, despite stiff competition and regulatory challenges.
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