U.S. stocks ended sharply higher on Wednesday as shares of Nvidia gained ahead of quarterly results from the company whose chips are widely used for artificial intelligence (AI) computing.
Market Snapshot
The Dow Jones Industrial Average rose 184.15 points, or 0.54%, to 34,472.98, the S&P 500 gained 48.46 points, or 1.10%, to 4,436.01 and the Nasdaq Composite added 215.16 points, or 1.59%, to 13,721.03.
Market Movers
Foot Locker (ticker: FL) sank 28% after slashing its fiscal-year adjusted earnings outlook to $1.30 to $1.50 a share from earlier guidance of $2 to $2.25. Nike (NKE) shares fell 2.7%. The stock extended its losing streak to a record 10 days.
Peloton Interactive (PTON) plunged 23% after the at-home fitness company saw a drop in subscribers and provided a disappointing outlook for its fiscal first quarter.
AMC Entertainment (AMC) fell 13% after declining 18% in the previous session. The movie-theater chain said that Thursday would be the last day of trading of AMC Preferred Equity units, also known as APES. APE units will be converted to common stock and result in the trading of a single class of AMC common shares. AMC also is planning a 10-for-1 reverse split of its common stock on Thursday.
Abercrombie & Fitch (ANF) soared 24% after the retailer’s second-quarter adjusted earnings handily topped estimates.
Apellis Pharmaceuticals (APLS) jumped 30% after the biopharmaceutical company issued an update on injection kits that it supplies, and an update on rare events of retinal vasculitis reported in treatment with eye-disease drug Syfovre. Apellis said a “causal relationship has not been established between the structural variations in this 19-gauge filter needle and the rare events of retinal vasculitis in the real world.” The company recommended doctors immediately discontinue use of any injection kits that contain the 19-gauge filter needle and instead use kits with the 18-gauge filter needle, which already are in distribution.
Williams-Sonoma (WSM) rose 13% after the home-furnishings company reported better-than-expected second-quarter earnings.
Grab Holdings (GRAB) was up 11% after the Singapore-based ride-sharing and food delivery company posted second-quarter revenue that rose 77% from a year earlier.
Super Micro Computer (SMCI) gained 7.6% after Wedbush analysts raised their recommendation on the manufacturer of information technology solutions to Neutral from Underperform but maintained their price target of $250.
Streaming giant Netflix (NFLX) gained 3.5% and was the top performer in the S&P 500. Oppenheimer analysts said paid programming and advertising should increase revenue by about 40% through fiscal 2025.
Manchester United (NYSE:MANU) rose 7% on Wednesday as Sheikh Jassim’s team is completing its due diligence on the famed soccer club, according to a report in The Sun on Tuesday. The takeover is expected to be finalized by mid-October.
Market News
Nvidia (NVDA) rose 3.2% and gained over 5% in extended trading. Shares of the chip maker set an all-time intraday high on Tuesday but ended the session down 2.8%. The stock has risen 218% in 2023. Second-quarter data-center sales top Wall Street view by more than $2 billion, and revenue forecast comes in $3 billion higher than expected, as demand explodes for gear that assists generative-AI tasks.
Guess? Inc (NYSE:GES) surged over 20% in extended trading; It reported Q2 EPS of $0.72, $0.33 better than the analyst estimate of $0.39. Revenue for the quarter came in at $665 million versus the consensus estimate of $638.51M. Guess? sees FY2024 EPS of $2.88-$3.08, versus the consensus of $2.78. Expects Revenue Growth between 2.5% and 4.0% in U.S. Dollars.
Splunk (NASDAQ:SPLK) soared 12% in extended trading; It reported Q2 EPS of $0.71, $0.25 better than the analyst estimate of $0.46. Revenue for the quarter came in at $911M versus the consensus estimate of $889.23M. Splunk sees Q3 2024 revenue of $1.02-1.035 billion, versus the consensus of $0.981B. Splunk sees FY2024 revenue of $3.925-3.95B, versus the consensus of $3.9B.
Autodesk (NASDAQ:ADSK) gained 7% in extended trading; It reported Q2 EPS of $1.91, $0.18 better than the analyst estimate of $1.73. Revenue for the quarter came in at $1.35B versus the consensus estimate of $1.32B. Autodesk sees Q3 2024 EPS of $1.97-$2.03, versus the consensus of $1.92. Autodesk sees Q3 2024 revenue of $1.38-1.395B, versus the consensus of $1.38B. Autodesk sees FY2024 EPS of $7.30-$7.49, versus the consensus of $7.28. Autodesk sees FY2024 revenue of $5.405-5.455B, versus the consensus of $5.41B.
Snowflake rose nearly 4% in extended trading; It posted a net loss for the fiscal second quarter ended July 31 of $226.9 million, or 69 cents a share, compared with a loss of $222.8 million, or 70 cents a share, for the year-earlier period. Analysts surveyed by FactSet had expected losses per share of 72 cents.
Xiaomi Corp has won the approval of China's state planner to manufacture electric vehicles (EVs), said two people with knowledge of the matter, marking a major step towards the smartphone maker's goal of producing cars by early next year.
Snap Inc. is appointing a former Google executive to lead its India operations as it strives to become a major social media force in a key growth market.
Alibaba Group Holding's Taobao Tmall Commerce Group is establishing a logistics department to better manage deliveries, according to local media reports and its recruitment website.
