The S&P 500 and Nasdaq ended 1% higher on Tuesday as investors jumped back into the market a day after a dramatic sell-off, with recent comments by Federal Reserve officials easing U.S. recession worries.
Market Snapshot
The Dow Jones Industrial Average rose 294.39 points, or 0.76%, to 38,997.66, the S&P 500 rose 53.70 points, or 1.04%, to 5,240.03 and the Nasdaq Composite rose 166.77 points, or 1.03%, to 16,366.85.
Market Movers
Lumen Technologies soared 93% after the telecommunications company said it secured $5 billion in new business “driven by major demand for connectivity fueled” by artificial intelligence and was “in active discussions with customers to secure another $7 billion in sales opportunities to meet the increased customer demand.”
Palantir Technologies rose 10% after second-quarter earnings and revenue beat analysts’ estimates, driven by what the software company’s CEO Alex Karp said was an “unrelenting wave of demand from customers for artificial-intelligence systems that go beyond the merely performative and academic.” Palantir also issued strong revenue guidance for the third quarter.
Nvidia rose 3.8% after the chip maker, the favored choice for training artificial-intelligence systems, ended Monday’s session down 6.4% following a report that said the company’s new chip could be delayed. Nvidia has declined 14% over a three-day stretch.
Super Micro Computer shares slid 13% after reporting fourth-quarter adjusted gross margin below analysts' estimates on Tuesday, as high costs associated with transitioning to newer AI chips weighed on the server maker's profits.
Caterpillar reported second-quarter adjusted earnings of $5.99 a share, higher than Wall Street estimates of $5.54. Operating profit margin in the period was 20.9%. Revenue fell 3.6% to $16.69 billion and missed estimates of $16.91 billion. The stock was up 3%.
Uber Technologies rose 11% after the ride-sharing and food-delivery business reported second-quarter earnings and revenue that beat analysts’ estimates. Uber said gross bookings in the period rose 19% to nearly $40 billion. It expects third-quarter gross bookings of between $40.25 billion and $41.75 billion compared with estimates of $41.18 billion.
CrowdStrike was up 4.3% to $231.69 after analysts at Piper Sandler upgraded shares of the cybersecurity company to Overweight from Neutral. The price target was cut to $290 from $310.
Alphabet was flat after a U.S. federal judge said the company’s Google division engaged in illegal practices to maintain a monopoly in two markets: general search services and general text advertising by using exclusive distribution agreements. “Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Amit P. Mehta of U.S. District Court for the District of Columbia wrote in a court ruling.
The ruling also could impact Apple, which has received payments from Alphabet for making Google the default search engine on iPhones. Apple shares were down 1% Tuesday after slumping 4.8% Monday following a disclosure from Warren Buffett’s Berkshire Hathaway that it slashed its stake in the tech giant. It was Apple’s worst one-day percentage decline since it fell 4.92% on Sept. 29, 2022.
Kenvue jumped 15% after the owner of brands such as Band-Aid and Tylenol reported second-quarter earnings that beat expectations. The company also reaffirmed its outlook for fiscal-year sales growth and adjusted per-share earnings.
Lucid Group reported second-quarter sales that beat Wall Street estimates and said it received a cash infusion of $1.5 billion from Saudi Arabia’s Public Investment Fund, the electric-vehicle maker’s largest shareholder. The stock rose 3%.
ZoomInfo Technologies slumped 18% after the provider of database information for corporate sales and marketing teams cut its full-year forecast. ZoomInfo said it expects sales for the year of $1.19 billion to $1.205 billion, down from a previous forecast of $1.255 billion to $1.27 billion. Adjusted earnings were forecast at of 86 cents to 88 cents a share, down from the company’s previous guidance of $1 to $1.02 a share. The company also announced the departure of its longtime chief financial officer, Cameron Hyzer.
Chegg, the education-technology company, declined 23% after swinging to a loss in the second quarter following an impairment charge and as subscribers fell 9% to 4.4 million. On an adjusted basis, earnings in the quarter were 24 cents a share, 1 cent better than analysts’ estimates.
Market News
Boeing to Make Design Changes to Prevent Future 737 MAX 9 Door Panel Blowout
Boeing said on Tuesday it plans to make design changes to prevent a future mid-air cabin panel blowout, opens new tab like the one in an Alaska Airlines 737 MAX 9 flight in January that spun the planemaker into its second major crisis in recent years.
The National Transportation Safety Board and Boeing said officials still have not determined who removed and reinstalled that plane's door plug during production.
BlackRock, Nasdaq seek rule change to list options on spot ethereum ETFs
BlackRock and exchange operator Nasdaq have proposed a rule change to list and trade options for the asset manager's spot ethereum exchange-traded fund, according to a regulatory filing on Tuesday.
In July, the U.S. Securities and Exchange Commission (SEC) approved exchange-traded funds tied to the price of ether from major firms, including Franklin Templeton, VanEck, Bitwise and 21Shares.
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