To The Moon

The S&P 500 and the Nasdaq managed to eke out tiny gains on Thursday while the Dow Industrial Average ended slightly lower with pressure from tech and retail bellwethers Cisco and Walmart after disappointing forecasts.

Market Snapshot

The Dow Jones Industrial Average fell 45.74 points, or 0.13%, to 34,945.47, the S&P 500 rose 5.36 points, or 0.12%, to 4,502.24 and the Nasdaq Composite rose 9.84 points, or 0.07%, to 14,113.67.

Market Movers

Walmart (WMT) reported third-quarter earnings that beat analysts’ estimates and raised fiscal-year guidance. But the stock fell 8.1%, after the outlook from the world’s largest retailer disappointed.

U.S.-listed shares of Alibaba (BABA) fell 9.1% after the Chinese e-commerce and cloud-computing company reported fiscal second-quarter earnings that were better than expected but warned that U.S. export controls on advanced computer chips, expanded in October, “may materially and adversely affect Cloud Intelligence Group’s ability to offer products and services and to perform under existing contracts.” Alibaba revealed it wouldn’t be spinning off the cloud division as planned.

Cisco Systems (CSCO) reported fiscal first-quarter adjusted earnings that beat analysts’ estimates but the networking-equipment maker reduced its outlook for the fiscal year and the stock tumbled 9.8%. The company said it expects adjusted profit for fiscal 2024 of $3.87 to $3.93 a share, down from a previous projection of $4.01 to $4.08 a share, and said it sees revenue of $53.8 billion to $55 billion, below its prior forecast of $57 billion to $58.2 billion. Cisco cited a slowdown in product orders.

Palo Alto Network s (PANW) reported fiscal first-quarter earnings and revenue that beat Wall Street estimates and raised its adjusted earnings outlook for the fiscal year, but the stock fell 5.4% after the cybersecurity company reduced guidance for total billings. For fiscal 2024, Palo Alto said it expects billings of $10.7 billion to $10.8 billion, an increase of 16% to 17% from a year earlier but below consensus of $10.96 billion.

Macy’s (M) reported third-quarter adjusted earnings of 21 cents a share, beating analysts’ estimates, while sales of $4.86 billion also topped forecasts. Shares rose 5.7%.

Plug Power (PLUG) declined 3.9% to $4.18 after shares of the hydrogen-technology company were downgraded to Neutral from Buy at Citi. The price target was reduced to $5 from $12.50. Analyst Vikram Bagri wrote in a research note that “subpar execution has led the company into liquidity challenges.”

Sonos (SONO) rose 17% after the audio technology company reported a narrower-than-expected fiscal fourth-quarter loss and said its board authorized a new stock buyback program of up to $200 million.

Maxeon Solar Technologies  (MAXN) reduced its revenue guidance for the fiscal year a second time and reported a third-quarter loss that was wider than a year earlier. The stock fell 15%.

Intel (INTC) rose 6.7% to $43.35 after the chip maker was upgraded to Buy from Neutral at Mizuho and the price target on the stock was raised to $50 from $37. In a research note, analysts at Mizuho said they believe the company is “lining up significant new server product launches and foundry customer announcements in the next six months.”

Crispr Therapeutics (CRSP) was up 5.3% after U.K. regulators approved a CRISPR gene-edited therapy to treat sickle cell disease and beta thalassemia. Crispr and partner Vertex Pharmaceuticals (VRTX) said the approval marked the first time the therapy had been authorized.

Chargepoint Holdings Inc. (NYSE: CHPT) 27% LOWER; lowered third quarter guidance and announced a new CEO. The company sees Q3 revenue of $108 to $113 million, versus $150 to $160 million previously.

Gap, Inc. (NYSE: GPS) 15% HIGHER; posted better-than-expected third quarter results. The retailer posted EPS of $0.59, $0.42 better than the analyst estimate of $0.17. Revenue was $3.8 billion versus the consensus of $3.6 billion.

Applied Materials, Inc. (NASDAQ: AMAT) 7% LOWER; reported better-than-expected fourth quarter results but was weighed down on reports it is under US criminal probe for shipments to China's SMIC.

Ross Stores (NASDAQ: ROST) 6% HIGHER; the off-priced retailer reported Q3 EPS of $1.33 versus the consensus of $1.22. Revenue grew 7.8% year-over-year to $4.9 billion. The company also raised its guidance for the year.

Market News

Amazon to Allow Car Sales on Its Website

$Amazon.com(AMZN)$ will permit the sale of cars on its e-commerce platform, allowing it to handle some of consumers’ biggest-ticket purchases.

Amazon said Thursday that it will begin online sales of vehicles next year. Hyundai will be the first brand available for purchase. The car maker named Amazon Web Services as its preferred cloud-computing provider to facilitate the online transformation.

“Amazon is the ideal partner to help realize our vision of progress for humanity, including improving how people and goods move more efficiently and sustainably,” Hyundai Chief Executive Jaehoon Chang said in the news release.

Options Tied to $2.4 Trillion in Stocks Set to Expire Friday

Traders have piled into call options linked to popular U.S. equity exchange-traded funds as U.S. stocks rallied following the release of Tuesday’s consumer-price index.

That could help push stocks even higher in the days ahead, options-market strategists said.

Options tied to $2.4 trillion in stocks, exchange-traded funds and equity indexes are set to expire on Friday, according to data compiled by Rocky Fishman, founder of Asym50, a provider of analytics about the U.S. options market.