U.S. stocks closed lower on Wednesday as crude prices tumbled and investors weighed cautious U.S. Federal Reserve commentary and ongoing geopolitical strife against mixed quarterly earnings.
Market Snapshot
The Dow Jones Industrial Average fell 45.66 points, or 0.12%, to 37,753.31, the S&P 500 lost 29.2 points, or 0.58%, to 5,022.21 and the Nasdaq Composite dropped 181.88 points, or 1.15%, to 15,683.37.
Market Movers
United Airlines posted an adjusted first-quarter loss of 15 cents a share, much narrower than analysts’ estimates that called for a loss of 58 cents, and revenue jumped 10% to $12.5 billion on strong travel demand. The carrier also forecast second-quarter earnings of $3.75 to $4.25 a share, higher than analysts’ estimates, and maintained its full-year forecast for adjusted earnings of $9 to $11 a share. The stock jumped 17%.
Travelers fell 7.4% after the property and casualty insurer reported first-quarter core earnings that missed analysts’ estimates and said catastrophe losses in the period rose to $712 million from $535 million a year earlier.
Trump Media & Technology Group rose 16% after shares of the parent company of the Truth Social platform fell 14% on Tuesday and 18% on Monday. The company on Tuesday said it was planning a new livestreaming network to be delivered via its app and eventually on TV.
First-quarter earnings and revenue at J.B. Hunt Transport Services fell as demand weakened and trucking volumes declined. Operating income dropped 30% to $194.4 million versus $277.5 million for the first quarter 2023. The decrease in operating income was “primarily due to a combination of lower volumes and yield pressure…as well as increases in equipment, insurance and claims, and bad debt expense,” the company said. Shares of the trucking and logistics company declined 8.1%.
ASML Holding fell 7.1% after first-quarter orders missed analysts’ expectations. The Dutch company, which provides semiconductor-making equipment to chip makers, posted net bookings in the first quarter of €3.61 billion, or $3.84 billion, below consensus estimates of nearly €5.10 billion.
Autodesk was down 5.8% after the design software company said an internal investigation of its accounting practices was ongoing and that it won’t be able to file its annual report for the year ended Jan. 31, within a 15-day extension period. Autodesk said it doesn’t believe the investigation will affect any previously issued financial statements.
Alcoa fell 1.5% and Cleveland-Cliffs rose 0.8% after President Biden called for tariffs on imported Chinese steel and aluminum to be tripled from current levels.
Mobileye Global rose 2.8% after the company said its EyeQ6L Lite assisted-driving chip was set to be installed in 46 million vehicles over the next few years.
Shares of U.S. Bancorp fell 3.6% after the regional bank reported a drop in revenue and an increased provision for credit losses in its first quarter.
Real estate logistics company Prologis declined 7.2% after saying that while operating conditions were healthy in the majority of its markets, “customers remain focused on controlling costs, which is weighing on decision-making and the pace of leasing.” The company forecast fiscal-year core funds from operations attributable to common shareholders at between $5.37 a share and $5.47 a share compared with previous guidance of $5.42 a share and $5.56 a share.
Market News
Google lays off employees, shifts some roles abroad amid cost cuts
Alphabet-owned Google is laying off an unspecified number of employees, a company spokesperson said on Wednesday, marking the latest cuts at the technology giant as it cracks down on costs.
The Google spokesperson said the layoffs are not company-wide and that affected employees will be able to apply for internal roles, but did not specify the number of employees impacted nor the teams involved.
Tesla Asks Investors to Approve Musk’s $56 Billion Pay Again
Tesla Inc. will ask shareholders to vote again on the same $56 billion compensation package for Chief Executive Officer Elon Musk that was voided by a Delaware court early this year.
In its proxy filing issued Wednesday, Tesla also said it will call a vote on moving the company’s state of incorporation to Texas from Delaware. The carmaker will convene its annual meeting on June 13.
Comments