U.S. stocks rebounded on Friday from sharp losses the day before on news of an improving consumer outlook on inflation, sending the Nasdaq to a fifth straight week of gains and record closing high.
Market Snapshot
The Dow Jones Industrial Average rose 4.33 points, or 0.01%, to 39,069.59. The S&P 500 gained 36.88 points, or 0.70%, at 5,304.72 and the Nasdaq Composite advanced 184.76 points, or 1.10%, to 16,920.79.
For the week, the Dow dropped 2.34%, the S&P edged up 0.03% and the Nasdaq gained 1.41%.
Market Movers
Nvidia (NVDA) - Nvidia rose 2.6% Friday, after the chip maker jumped 9.3% the previous session, following strong quarterly earnings. The stock closed at an all-time high of $1,037.99, and Nvidia gained $221.23 billion in market value on Thursday. The company also announced Wednesday it would be splitting its stock 10-for-1 in early June, with the stock falling to around $100 a share once the split takes effect, making Nvidia a candidate for the Dow index.
Tesla (TSLA) - Tesla stock gains 3.2% on Friday despite Model Y news. Tesla has trimmed Model Y production at its Shanghai factory by 20%, according to a new report from Reuters. The news outfit says that anonymous insiders say the cuts have been gaining steam since March and will likely run through June.
Dell Technologies (DELL) - Shares of Dell Technologies hit a record high on Friday amid a rally in companies working on generative artificial intelligence applications, buoyed by strong optimism for the new technology.
Intuit (INTU) - Intuit, the parent company of TurboTax, Credit Karma, and QuickBooks, raised its fiscal-year profit and sales outlook. The company also topped fiscal third-quarter earnings expectations, saying that its strategy to be the “global [artificial-intelligence]-driven expert platform is delivering significant benefits to our customers and strong results across the company.” The stock was down 8.4%, however, after Intuit warned of a decline in the number of people who use TurboTax for free.
Workday (WDAY) - Workday, the human-resources software company, reduced its fiscal-year outlook for subscription revenue, reflecting “elevated sales scrutiny and lower customer head count growth” it saw in its first quarter. The stock tumbled 15% after Workday said it now expects subscription revenue of $7.7 billion to $7.725 in the fiscal year, below its previous forecast of $7.725 billion to $7.775 billion.
Ross Stores (ROST) - First-quarter earnings and sales at Ross Stores topped analysts’ projections and the discount department-store chain raised its fiscal-year profit forecast. Shares jumped 7.8%.
Deckers Outdoor (DECK) - Deckers Outdoor posted fiscal fourth-quarter earnings that easily beat estimates and said it expects revenue in fiscal 2025 to jump about 10% to $4.7 billion. Shares of the maker of Hoka sneakers and Ugg boots jumped 14%. Hoka sales of $533 million in the period rose 34% from a year earlier.
Guardant Health (GH) - Guardant Health was up 13% after a Food and Drug Administration advisory committee strongly recommended regulators approve the company’s blood test for colorectal cancer screening.
Magnite (MGNI) - Magnite was up 14% at $12.57. Shares of the advertising technology company were upgraded to Buy from Neutral at Bank of America.
Market News
GameStop Surges After Fetching $933 Mln from Stock Sale
GameStop made nearly $933.4 million by selling 45 million shares, the struggling videogame retailer said on Friday, sending its shares up more than 12% after the bell.
The company largely relies on brick-and-mortar stores and has been grappling with customers turning to e-commerce firms for buying video games and collectibles.
It had disclosed its share sale plan earlier this month amid a retail buying frenzy sparked by the return on social media of "Roaring Kitty" Keith Gill, whose bullish calls on the company spurred the 2021 meme stock rally.
Tesla Slashes Model Y Production in Shanghai, Data Shows
Tesla has cut output of its best-selling Model Y electric car by a double-digit percentage number at its Shanghai plant since March, according to industry data and a source.
The move is aimed at addressing weakening demand for the U.S. automaker's aged model in China, its second largest market into which a majority of the cars produced at the Shanghai plant are sold and where a brutal price war has erupted among electric vehicle makers amid an economic slowdown.
The Shanghai plant, Tesla's biggest manufacturing hub globally, planned to cut Model Y output by at least 20% during the March to June period, said the person, who declined to be named as the matter is private.
Lilly Invests Further $5.3 Bln in New Indiana Site as Obesity Drug Demand Soars
Eli Lilly said on Friday it has invested another $5.3 billion in its new Lebanon, Indiana manufacturing plant, more than doubling its previous investment, as it scrambles to meet soaring demand for its weight-loss and diabetes drugs.
The new investment, which brings the total to $9 billion, will help boost production of the active pharmaceutical ingredients (API) for Lilly's powerful weight-loss drug Zepbound and diabetes treatment Mounjaro, the company said.