The Dow notched a record high close on Thursday in mixed trading following robust U.S. economic data, while artificial intelligence chipmaker Nvidia dropped after its largely in-line forecast failed to impress investors.
Market Snapshot
The Dow Jones Industrial Average rose 0.59% to 41,335.05 points, an all-time closing high. The S&P 500 index ended barely changed at 5,591.96 points, just below its July record high close as expectations for a September interest rate cut remained robust. The Nasdaq declined 0.23% to 17,516.43 points.
Market Movers
Ulta Beauty — The beauty products retailer saw its shares fall nearly 7% after missing top and bottom line expectations in the second quarter. Ulta’s earnings came out at $5.30 per share, while analysts polled by LSEG expected $5.46 per share. Revenue was $2.55 billion, also falling short of analysts’ forecast of $2.61 billion. The company also trimmed its full-year outlook.
MongoDB – Shares of the database company rose nearly 13%. MongoDB issued strong fiscal third-quarter guidance, forecasting adjusted earnings of 65 cents to 68 cents per share on revenue of $493 million to $497 million. Analysts polled by LSEG expected 60 cents per share in earnings and $479 million in revenue.
Dell Technologies — Shares jumped 3.6% after the tech company handily beat quarterly expectations. Dell reported fiscal second-quarter adjusted earnings of $1.89 per share, beating analysts’ expectations of $1.71 per share, according to LSEG. Its revenue of $25.03 billion also surpassed analysts’ forecast of $24.53 billion.
Marvell Technology — The semiconductor company jumped over 7%. Marvell issued fiscal third-quarter guidance that was ahead of analysts’ expectations, calling for adjusted earnings of 40 cents per share on revenue of $1.45 billion. Analysts polled by LSEG anticipated 38 cents per share in earnings and $1.40 billion in revenue.
Lululemon Athletica — Shares of the athletic apparel retailer added 6% after the company posted better-than-expected earnings but lackluster revenue for the second quarter. Lululemon reported earnings of $3.15 per share on revenue of $2.37 billion. Analysts polled by LSEG called for earnings of $2.93 per share on revenue of $2.41 billion.
Elastic NV – Shares of the artificial intelligence search company tanked 24%. Elastic issued a weak outlook for fiscal second-quarter revenue, forecasting $353 million to $355 million, compared to analysts’ estimate of $361 million, per LSEG. Full-year revenue guidance was also soft. Fiscal first-quarter results topped Wall Street’s expectations, however.
Market News
Elon Musk, Tesla win dismissal of lawsuit claiming they rigged dogecoin
Elon Musk and his electric vehicle company Tesla won the dismissal of a federal lawsuit accusing them of defrauding investors by hyping the cryptocurrency dogecoin and conducting insider trading, causing billions of dollars of losses.
The decision was issued on Thursday night by U.S. District Judge Alvin Hellerstein in Manhattan.
Investors accused Musk of using Twitter posts, a 2021 appearance on NBC's "Saturday Night Live" and other publicity stunts to trade profitably at their expense through several dogecoin wallets that he or Tesla controlled.
Apple, Nvidia in talks to join OpenAI funding round, media reports say
Apple and chip giant Nvidia are reportedly in talks to invest in OpenAI as part of a new fundraising round that could value the ChatGPT maker above $100 billion, according to media reports on Thursday.
The Wall Street Journal first reported on Apple's interest, citing sources, while Bloomberg News reported on Nvidia's potential involvement.